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 newsletter!

Error: Please check your email address.
Show Comments

Blog Posts

Innovations in retail will bring creative and technology closer than ever

While approaching a customer in a shop and asking what you can help them with is Retail 101, how many of us actually enjoy being approached? Generally, you have to give the forced, fake smile and say, “Just browsing, thanks,” while screaming on the inside, “just leave me alone!” Maybe it’s just me?

Jason Dooris

CEO and founder, Atomic 212

There’s a brand in my digital soup

Not a day passes by in the life of business executives where digital innovation or the prospect of disruption is not front of mind. This in turn, drives an unrelenting flow of questioning, discussion and strategy papers.

Jean-Luc Ambrosi

Author, marketer

Can marketers trust agencies again?

Unless you’ve been marketing under a rock, you’ll probably have questioned whether your media agencies are offering you transparency.

Nic Halley

Founder and managing director, Mindbox

Nice post Brad! very useful information. The retail stores are really mean for every brand I am agree with you. Now Online Service Market...

Srialto

The rise of online retail marketplaces and what they mean for brands

Read more

Minor correct Nadia, just wanted to clarify that the "Marketo consultants" that did this work, were actually Hoosh consultants

Fab Capodicasa

What it's taking for Edible Blooms to grow a stronger personalisation strategy

Read more

Im not surprise though, been in the industry for couple of years and I feel and see it with my tow eyes how eCommerce platforms innovated...

Jason Smith

Australia Post earmarks $20m for Australian ecommerce innovation investment

Read more

For marketers that are "going Agile" I recommend using Ravetree. It's a really powerful suite of tools for Agile project management, reso...

Janice Morgan

7 ways to run your marketing department like a software startup

Read more

Over the years very part of our lives has become technological. That’s why I am not surprised to see that Australian home loans are going...

GreatDayTo

Why Aussie Home Loans is embracing digital transformation

Read more

Latest Podcast

More podcasts

Sign in