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Domino's Pizza to focus on business relationship with franchisees as sales continue to soar

20 February 2007 by
Domino's Pizza to focus on business relationship with franchisees as sales continue to soar

Domino's Pizza plans to focus on franchise management in 2007, as it works on increasing the numbers of stores owned by individual franchisees.

Its efforts so far have increased the ratio from an average of 2.7 stores per franchisee in 2005 to three each in 2006, although this policy saw a decrease in individual franchises from 157 in 2005 to 150 in 2006.

Financially the pizza delivery chain continued to flourish in the full year to 31 December, despite planning issues hampering it in achieving its target of opening 50 new stores, which is missed by four.

System sales, which represent all sales in the UK and Ireland under the Domino's banner, increased 19.7% to £240.1m (2005: £207m).

Company turnover, including money from joint ventures, jumped 16% to £98.9m (2005: £85m) and pre-tax profit was 28% higher at £14.3m (2005: £11.2m).

Full-year like-for-like sales at its 357 "mature" stores were up 9.7% compared with 2005.

Domino's chief executive Stephen Hemsley said: "The significant growth in sales, fuelled by strong like-for-like increases and store openings, combined with our relatively fixed cost base, has resulted in profits once again reaching record levels."

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How to buy a franchise >>Top quick-service restaurants 2006 >>By Jessica Harvey

E-mail your comments to Jessica Harvey here.

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