Domino's Pizza "fundamentally a digital business" in UK as online orders account for 55.7 per cent of deliveries
Domino’s Pizza has revealed an increase in online sales of 46.3 per cent to £268.6 million, as online sales accounted for over half of its deliveries (55.7 per cent).
The pizza delivery chain reported pre-tax profits of £49.7 million, excluding Germany and Switzerland, an increase of 14.2 per cent on 2011.
With online deliveries increasing, the company has also reported that last year it saw nearly a fifth (19.7 per cent) were made through a mobile device, almost double the rate of 2011 at 10.1 per cent.
As a result, the statement described the UK arm of Domino’s as being “fundamentally a digital business”, adding that in the fourth quarter its online sales made up 60 per cent of deliveries, with a dozen stores receiving 80 per cent of their orders online.
“Going digital is a real advantage for Domino's,” said Patrick Doyle, CEO of Domino’s in his trading statement. “Customers who order online have a higher net promoter score, i.e. they recommend us more often. They themselves order more often, and spend more. Importantly a web transaction generates higher margins for our franchisees, because they do not need to incur labour costs to answer the phones.”
Meanwhile, having continued its marketing strategy of TV advertising, sponsorships, outdoor and leafleting activity, while also adopting email, associate sites, SEO and digital display, the company saw its social media platforms reach 747,000 Facebook Fans in the UK, up from 330,000 the previous year, and 68,000 followers on Twitter, an increase of 50,000 in a year.