“Every Domino’s pizza is a customised, handmade work of art,” the takeaway chain’s chairman claimed today. Sadly not not enough of that art finds buyers in Germany.
Just over two years after Domino’s launched a drive for explosive growth across the country, it admitted today that pre-tax profit for the group last year rose just 1% to £47.6 million, stymied by the £26.5 million expense of running its fledging German business.
Late last year, Domino’s halved its target of 400 new stores by 2020. Today chairman Stephen Hemsley admitted: “Germany has been difficult for us. Our initial strategy of rapid store expansion to achieve critical mass early resulted in unacceptably high losses.” It has embraced “slow expansion”.
Overall, Domino’s sold 65.5 million pizzas last year, with sales up 14% to £668.8 million — two-thirds of those from tablet, phone and online orders. It now has 858 branches, after opening 57 new stores and closing four last year.
The chain still lacks a boss, after chief executive Lance Batchelor surprised the City by quitting in December. But former Halfords boss and Domino’s senior non-executive, David Wild, is interim chief executive.
