Domino’s Pizza has refuted any fears that Brexit could put the brakes on its UK business by increasing its long term target for the UK to 1,600 stores.
The chain expects to operate around 950 stores by the end of 2016 but said that its “continued strong new store performance” and positive outlook for the market leaves it well-placed to eventually almost double that number.
The move means the company will be commissioning dozens of new kitchen projects as it works its way up towards its target.
It added that the strategy of splitting territories to improve efficiency and service to customers by shortening drive times had led to higher sales for both DPG and franchisees.
Outside the UK, the company has identified opportunities for a total of 400 stores, up from around 100 at the end of 2016.
“This is an exciting time for DPG,” said chief executive David Wild. “Our continued strong e-commerce performance and our collaboration with our dedicated franchisees, enable us to increase our UK presence significantly. Internationally, our progress in Switzerland and new collaborations in the Nordic region are exciting opportunities for the business.”
The group said it “continues to trade well” and PBT guidance for 2016 remains unchanged. Re-phasing of its new Supply Chain Centre projects mean that Capex will be around £20m compared to the £33m indicated at the half year, but Mr Wild said that it would not affect its ability to meet demand over the next 18 months.