Digital innovation helps Domino's chalk up record full-year financial result

Pizza maker says double-digit sales, EBITDA and net profits have been driven by the launch of data-driven initiatives and digital ordering enhancements

A range of “disruptive digital initiatives” has helped Domino’s to a record double-digit increase in network sales, pre-tax and net profits for the full year.

The pizza maker reported a 32.7 per cent increase in network sales to $1.96 billion for the 12 months to 3 July 2016, along with a revenue jump of 32.4 per cent to $930.2m. Off the back of this, Domino’s saw a 43.6 per cent increase in underlying net profit after tax (NPAT) to $92m.

The group attributed the results to significant organic growth across same store sales, which Domino’s said was helped by leveraging digital platforms as well as adding 484 stores for the group globally.

In Australia and New Zealand, the group chalked up revenue of $268m, annual EBIDTA growth of 28 per cent to $91.7m, and 14.8 per cent growth in same store sales, its second consecutive year of double-digit growth. Notably, online sales were up 33 per cent year-on-year. Europe reported even bigger EBIDTA growth at 122.8 per cent, while in Japan, EBITDA lifted by 25.5 per cent.

In a statement, Domino’s put the stellar A/NZ results down to disruptive digital initiatives, including its ‘Project 3/10’, aimed at cutting down delivery times from the traditional 30-minute window to 10 minutes by tapping data insights; ‘15/20 Minute Service Guarantees’, SMS ordering capabilities, and 'On Time Cooking’, which is based on opt-in geolocation technology.

Other technology-led initiatives launched in the past year include trials of Domino’s Robotic Unit (DRU), an autonomous delivery vehicle, the roll out of 600 e-bikes, smartwatch ordering in Australia, and the debut of a dedicated innovation space called DLAB. In total, the Australian digital development team drove more than 80 digital projects across the group in the past year.

Marketing activity was also mentioned in the financial results, with the ‘More than Just Pizza’ food innovation campaign noted as a success in helping Domino’s grow not just its pizza marketshare, but also across the wider quick service restaurant category.

“We are focused on improving technology, pushing safer, more efficient delivery, while investing in world-class ordering platforms,” said Domino’s Group CEO and MD, Don Meij.

“A huge driver of this is our ‘Project 3/10’and our ‘Slow where it matters, fast where it counts’ philosophy, which have enabled stores to deliver in 10-12 minutes and reduce pick-up times to between 5-6 minutes.”

Meij said 300 stores are expected to achieve its Project 3/10 vision by the end of the next financial year, up from 150 currently. “We expect Project 3/10 to continue to be a significant sales stimulus over the next 3-5 years, with 10-minute delivery attracting drive-through customers from our largest competitors,” he said.

As mentioned at the group’s inaugural tech innovation event, Abacus, in June, Domino’s is also launching a new ‘Zero Click’ offering, available through a new mobile app. Once a user opens the app, they are given 10 seconds in which to cancel or modify an order before one is processed by Domino’s. These could be based either on a favourite pizza or the most recent order.

Trials of DRU will also be extended with new artificial intelligence capabilities aimed at reducing friction points and improving the customer experience, and there are plans afoot to take more of the digital innovations from A/NZ into Europe and Japan.

And in the media space, Domino’s will look to better utilise online, social and digital video with the aim of increasing customer reach and efficiency.

It’s not all pure tech, however. Over the coming year, Domino’s will overhaul and extend its menu to include two new food categories, the biggest menu shake-up since 2008. It’s also looking to grow the store count in A/NZ from 900 to 1200 based on growth and market opportunity, Meij added.

Follow CMO on Twitter: @CMOAustralia, take part in the CMO conversation on LinkedIn: CMO ANZ, join us on Facebook: https://www.facebook.com/CMOAustralia, or check us out on Google+: google.com/+CmoAu

Join the CMO newsletter!

Error: Please check your email address.
Show Comments

Supporting Association

Blog Posts

If creative, media and technology were bedfellows

It’s become crystal clear that if you’re going to be successful in the ever-shifting marketing landscape, you need to be able to change direction, and fast. Fluidity and agility are key, and that’s why having technology, media and creative playing on the same team is going to be crucial for the successful marketer or agency.

Jason Dooris

CEO and founder, Atomic 212

Why 2017 will herald a resurgence of values-based marketing

It doesn’t take long for predictions to become predictable: The rise and rise of Facebook; advancements in analytics; the normalisation of chatbots; personalisation, programmatic, automation, authenticity… The prediction that’s missing from these lists is that in 2017 we will witness a resurgence of values-based marketing.

Jacqueline Burns

Founder, Market Expertise

Why customer experience driven growth is set to take off

Our overall brand perceptions are invariably shaped by our experiences. And loyal customer relationships can be severed in moments by a negative service interaction.

Not to mention that the full realisation of the "implosion of trust" recorded in the Edelman Trust Barometer 2017 leaves the move to valu...

Walter Adamson

Why 2017 will herald a resurgence of values-based marketing

Read more

loved the Qantas airline and hyundai one

Furqan Bin Rizwan

10 examples of virtual reality marketing in action

Read more

Someone needs a swift kick up the bum for such an idiotic idea.

random

​Why a degree is no longer enough to get you hired as a skilled marketer

Read more

The frequent flyer programs are the new profit machines for airlines all over the world, as they have morphed to be mass marketing machin...

Steve@iFLYflat

Velocity frequent flyers program strong performer in mixed half-year for Virgin

Read more

Hi Jennifer, thanks for sharing these info regarding the digital marketing trends.I've created a related video to this topic, would you m...

Fabio Carry

Predictions: 17 digital marketing trends for 2017

Read more

Latest Podcast

More podcasts

Sign in