Wednesday, February 5, 2014

What's next for Domino's?

According to group CEO Don Meij, another 200 stores, technological developments and healthier, more adventurous product offerings are all on the cards for the pizza franchise. 
EXPANSION
Domino’s opened its 600th Australian/New Zealand store at the end of last year, and it has firm expansion plans for the future.
“We’ll be opening 50 stores in Australia and New Zealand over this financial year. We've had a very good first half  - we have basically already opened just over half of those stores,” says Meij.
“We’re having our strongest store opening growth since 2005-06.”
Over the next four years, Domino’s aims to open its 800th store across Australia and New Zealand.
Meij attributes the brand’s continued expansion to its sales performance, product offering and digital prowess.
“Between our product, digital platforms and reimaging of our stores to ensures Domino’s continues to look fresh and relevant, we’re getting a lot of good growth.
 “We are Australia’s most sophisticated digital retailer, almost 60 percent of our sales are made online, and more than half of that is mobile,” he explains.
TECHNOLOGY THE FOCUS 
Much of Domino’s time was devoted to product in 2013 (the brand launched its ‘game changing’ Chef’s Best range) however technology will be at the forefront in 2014.
“Yes we do have some new, innovative pizzas and side items coming but we are investing in technology more than anything.
“We are spending a record amount on digital development this year to ensure we continue to lead in the space.”
Meij remained tight lipped as to what the technological developments are, however he said the brand’s first instalment will launch in March, and we can expect another by the middle of the year.

THE PIZZA INDUSTRY: MEIJ'S VIEW 
Meij describes the pizza industry as “dynamic and exciting,” and welcomes the gourmet pizza chains.
“I think we will continue to see on one fringe there is a lower volume of business but we will see the gourmet chains continue to grow.”
He sees price point as a key differentiating factor between Domino’s and gourmet pizza chains, and doesn’t see them as a threat.
“They are really good for the category, when you’re paying twice to three times as much for a gourmet pizza it’s a very different pizza experience.
“A Domino's customer is buying significantly more frequently because we are a genuine meal replacement, we are not a treat in a sense that it’s a priced out there treat,” he says.
“We want the gourmet chains to be successful because they bring more attention to pizza overall and when people see the difference in prices there is obviously going to be a lot more Domino’s experiences.”

HEALTHIER ALTERNATIVES
Meij stresses Domino’s isn’t trying to portray itself as a destination for people on a diet; however the brand’s pizzas are much better for the waistline today than in the past.
“Our fastest growing consumer is women with kids because we’ve made the product healthier than it once was,” he says.
“We’ve been pulling the fat out of our product; our mozzarella is a 30 percent fat reduced variety - that’s standard on every pizza, we’re the only pizza company to do that. The product has a lot less fat, sodium and preservatives than it once did - it’s just much better for you.”
PRODUCT INNOVATION
Domino’s introduces new products on a quarterly basis, and the brand has been experimenting with a range of different varieties - including a new Peri Peri range, which launches today.
“What has encouraged us to do more and more exciting topping combinations is people’s increased interest in food over the last five to 10 years. This is the MasterChef generation - that’s really what we’re embracing,” he says.
Despite serving up pizzas that diverge from the typical ham and pineapple, Meij reiterate Domino’s products aren’t gourmet.
“We sell what would be considered premium products,” he says.
“Our philosophy has always been to democratise great food, to take things that you might buy in a premium restaurant and make them really affordable.”
Images: Domino's, Domino's Australia Facebook page.

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