Although people have less disposable income and the UK is still currently in the middle of a double-dip recession, it seems that people still have enough money to spend on takeaway food.
Domino’s Pizza Group plc is one of the leading pizza delivery companies in the UK and despite the recession, the group have recorded a rise in sales, even though many other businesses are struggling. But at the end of the day, people still have to eat; but is £11.99 justifiable for a large plain pizza? Pizza lovers of the UK seem to think so, but the Republic of Ireland differs.
From 24 June to 23 September 2012 sales in the UK were up by 3.7 per cent, whilst sales fell in the Republic of Ireland by 2.1 per cent. Overall, sales were up by 7.9 per cent which equated to £136.4 million and like-for-like sales increased by 3.7 per cent.
Speaking of the growth, Lance Batchelor, Chief Executive, said: “Our franchisees continue to show demonstrable enthusiasm and commitment to drive the business forward, even in a challenging economic climate.
“We continue to set ourselves ambitious targets but believe that a great product, supported by exemplary customer service and innovative marketing will deliver strong growth in the years to come.”
This is excellent news for the company which has 770 commercial properties, which are mainly run by franchises. Orders used to come mainly via the telephone, but as the smartphone market grew, so did online orders which now equates to 58.4 per cent of all pizza orders.
But what can the company expect in the fourth quarter of the year? Many people may think the pizza company will struggle for sales as traditionally people start diets in time for Christmas. But Lance believes it will be even stronger than quarter three.
He continued: “We approach the fourth quarter, traditionally our strongest trading period, with continued optimism and determination.
“We have exciting marketing initiatives in place across our markets and we are confident of meeting City consensus earnings for the full year.”
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