Domino’s UK master franchisee names CFO

September 6, 2020

United Kingdom-based Domino’s master franchise company, Domino’s Pizza Group Plc, has named its interim CFO and former Ei Group Plc CFO, Neil Smith, to the chief financial officer’s spot on a permanent basis, according to a news release. Smith will also join the company’s board on Sept. 16.

 
Smith held the financial lead at U.K. pub restaurant company, Ei Group plc, from 2011 until its recent takeover by Stonegate Pub Company. He succeeded David Bauernfeind, who died in a snorkeling accident last year.

Additionally, the company named Natalia Barsegiyan and Lynn Fordham to its Board of Independent Non-Executive Directors, as well as appointing the pair to the board’s Nomination, Remuneration and Audit committees.

Related: Fast Food Franchises in the UK – 10 Things Every Would-Be Franchisee Must Know

Barsegiyan retired as CFO of Taco Bell in April 2020 and previously served as Yum Brands’ chief commercial officer from 2016 to 2018 and the general manager of Pizza Hut Europe from 2013 to 2016.

Fordham is managing partner of private equity firm, Larchpoint Capital LLP, and is a chartered accountant, who previously was CEO of SVG Capital Plc. Fordham also held senior finance roles at Barratt Developments Plc, BAA Plc and Boots Plc.

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“I am delighted to welcome Natalia and Lynn as non-executive directors. Both have highly relevant experience and impressive track records of value creation,” Board Chair Chairman Matt Shattock said in the release. “I am also very pleased to welcome Neil to the board. Neil has built upon the foundations laid by David Bauernfeind, bringing further rigor to the business. …. These appointments mark an important milestone in the evolution of the board and I am looking forward to working with them.”

Related: Domino’s Pizza Franchise

Domino’s Pizza Group plc is the UK’s leading pizza brand and a major player in the Irish market. The company holds the master franchise agreement to own, operate and franchise Domino’s stores in the U.K., Republic of Ireland, Switzerland, Sweden, Iceland and Liechtenstein, as well as associate investments in the holders of the Domino’s master franchise agreements in Germany and Luxembourg.

Source: Pizza Marketplace

Domino’s employees can get paid after every shift

April 20, 2020

Branch, the challenger bank that partners with employers, now offers Domino’s employees faster payment options and financial wellness tools.

 
What’s happening: Branch signed an integration agreement with Servant Systems, the software developer for the system Domino’s franchises use for payroll and other store information.

Related: Fast Food Franchises in the UK – 10 Things Every Would-Be Franchisee Must Know

  • Current store payment systems demand large quantities of cash on-site, which can lead to higher levels of theft, loss, and administrative time.
  • With Branch, Domino’s franchise owners can instantly pay employees wages, tips, and mileage onto the Branch digital wallet and debit card, without requiring pre-funding, cash reserves, or changes to payroll.
  • Along with faster payment options, franchises can also provide employees financial wellness offerings including fee-free checking accounts, an overview of projected earnings, and budgeting tools.
  • Branch is the first same-day payment provider to be integrated directly into PULSE, Domino’s franchise office system.

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“Domino’s has become synonymous with fast, reliable delivery, thanks to their dedicated employees and innovative tools like PULSE,” said Branch CEO Atif Siddiqi.

Related: Domino’s Pizza Franchise

By ZOE MURPHY

Source: Tearsheet

Domino’s UK names former Costa chief as CEO

April 3, 2020

Britain’s largest pizza delivery company Domino’s Pizza Group DOM.L on Tuesday named former Costa Coffee Chief Executive Officer Dominic Paul as its top boss replacing David Wild, whose departure was announced last year.

 
Paul, who led Costa Coffee from 2016 to 2019 ahead of its 3.9 billion pound ($4.82 billion) sale to Coca-Cola KO.N last year, will join Domino’s on May 1.

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He has also worked with Royal Caribbean Cruise Line RCL.N as senior vice president, international, and held senior roles at easyJet EZJ.L, British Midland and British Airways ICAG.L.

“We think Dominic is highly suitable for the role, being an impressive communicator with a strong track record and experience of collaborating with franchisees,” Jefferies analysts said.

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The company, a franchise of U.S.-based Domino’s Pizza Inc DPZ.N, appointed Beam Suntory executive Matt Shattock as its chairman earlier this month.

Domino’s Pizza Group is also looking for a chief financial officer after David Bauernfeind died in a snorkelling accident last year.

Related: Domino’s Pizza Franchise

The new management will be tasked with overseeing the sale of the company’s loss-making international operations and resolving a profit sharing row with its franchisees.

By Tanishaa Nadkar

Source: Nasdaq

Domino’s continues hunt for international buyer

March 8, 2020

Domino’s Pizza is still trying to sell its international businesses, months after announcing a deal for its Norwegian arm.

 
The pizza chain said it is still looking for buyers and the search is “progressing”, as it waits for shareholder approval to sell in Norway.

The company has the rights to franchise, own and operate Domino’s stores in the UK and Ireland, as well as Switzerland, Iceland and Lichtenstein. It also has stakes in Norway, Sweden, Germany and Luxembourg.

Related: Fast Food Franchises in the UK – 10 Things Every Would-Be Franchisee Must Know

The business has 1,298 stores in six markets, a vast majority of which – 1,130 – are in the UK, it said.

Chief executive David Wild said: “In February we were pleased to announce a disposal of our Norwegian business, which is subject to shareholder approval, and we expect this to complete by the end of May.

“We continue to prioritise transactions for our remaining international businesses, although expect that these may take some time as we ensure that we find the best owners for these businesses.”

The company is also looking for a whole new top team as Mr Wild is set to stand down this year, and the business has still not found a replacement for former chairman Stephen Helmsley, who left in December.

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It also needs a new finance director following the death of David Bauernfeind in an accident on December 26 while on holiday with his family.

Domino’s said it is “difficult to determine” the potential impact of coronavirus, but it has put contingency plans in place.

Mr Wild told the PA news agency that the company has seen no impact yet, but is prepared for both positive or negative impacts on performance.

He said: “We haven’t seen an impact either way. But we’ve increased our inventory levels of frozen and ambient products in preparation.

“There are both reasons to be optimistic and pessimistic, but we are just focused on being the best prepared with can.”

Related: Domino’s Pizza Franchise

Some delivery-driven businesses have reported an uptick as customers opt to stay at home.

Domino’s opened 32 new stores in the UK and Ireland last year, all but three of them franchised.

Mr Wild said the business has a “strong operational relationship” with its franchisees, but admitted that it would look to strengthen the relationship after a row between franchisees and management last year.

It came in a year when pre-tax profit fell nearly 14% to £75.1 million on revenue of £1.2 billion, up 4.8%.

Analysts at Liberum said Domino’s core business in the UK and Ireland seems to be stalling, adding: “We see little positives in this statement.”

Source: Evening Express

Domino’s Shares Gain 14% in 6 Months: Will Growth Continue?

January 21, 2020

Domino’s Pizza, Inc. DPZ is riding high on solid brand positioning, international expansion and various sales building initiatives. With a decent share price appreciation, Domino’s is currently a profitable investment choice.

 
Shares of Domino’s have outperformed the industry in the past six months. The stock has gained 14% against the industry’s decline of 1.8%. Moreover, an upward revision in earnings estimates for 2020 reflects analysts’ optimism in the company’s growth potential. Over the past 60 days, the Zacks Consensus Estimate for its 2020 earnings has moved up by 0.5% to $10.55 per share. Let’s delve deeper.

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Robust Same-Store Sales & Unit Expansion Bode Well

The pizza category is a fast-growing segment in the U.S. quick-service restaurant industry and Domino’s is one of the largest pizza chains worldwide. In the United States, the company is the market leader in the delivery segment and ranks second in the carry-out division. Notably, the third quarter of 2019 marked the 34th consecutive quarter of positive same-store sales, domestically.

Since Domino’s earns a chunk of its revenues from outside the United States, it remains committed toward accelerating presence in high-growth international markets to boost business. The company’s international growth continues to be strong and diversified across markets, courtesy of exceptional unit level economics. Notably, the third quarter of 2019 marked the 103rd consecutive quarter of positive same-store sales in its international business. Globally, Domino’s opened 829 and 1058 net stores in 2017 and 2018, respectively. Also, in the first nine months of 2019, the company opened 574 net new stores.

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Furthermore, many international franchisees are steadily generating robust returns. Apart from the established markets such as Canada, Japan, Italy, the U.K., Ireland, Switzerland and South Korea, the emerging markets like Brazil, China, Indonesia and Turkey have been posting solid growth. Australia, Russia, New Zealand and Saudi Arabia are also gaining momentum.

Domino’s continues boosting sales through regular limited time offers (LTO). Moreover, the company is investing heavily in technology-driven initiatives like digital ordering to boost sales. By the end of the fourth quarter of 2019, the company will launch GPS tracking technology. Meanwhile, it has started driverless pizza delivery services in Houston, TX.

Related: Domino’s Pizza Franchise

Focus on Franchising Favors Earnings

Domino’s has a wide franchise network, both domestically and internationally. Reducing the company’s ownership of restaurants and focusing more on re-franchising minimizes its capital requirements and facilitates earnings per share growth and ROE expansion.

In addition, free cash flow continues to grow, allowing reinvestment for increasing brand recognition and shareholder return. In fact, the company has increased dividend by 25%, 24%, 23%, 21% and 20% in 2014, 2015, 2016, 2017 and 2018, respectively, after initiating regular dividends in 2013.

Moreover, Domino’s is less susceptible to food inflation courtesy of franchising compared with other pizza companies with global operations. The company’s recapitalization deal also makes cash available for potential special dividend and share repurchases, subject to the board’s approval. During third-quarter 2019, it announced a new $1 billion share repurchase program.

Source: Yahoo Finance UK

Domino’s Pizza chairman Stephen Hemsley to step down

December 11, 2019

Domino’s Pizza Group <DOM.L> on Tuesday said its long-serving Chairman Stephen Hemsley will step down from the board, four months after the British pizza delivery chain announced the retirement of its chief executive officer.

 
Hemsley, who was appointed as Domino’s non-executive chairman in March 2010, will leave the company on Dec. 29. Senior Independent Director Ian Bull will assume the role of an interim chairman.

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“The search for a new chairman is progressing, and will be followed by the appointment of a new CEO,” the company said in a statement.

CEO David Wild announced his intention to retire in August after the company said earlier this year it was considering replacing its CEO and chairman in the wake of the Financial Reporting Council’s revised corporate code that emphasised the need for boards to refresh themselves.

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The British company – which is a franchise of U.S.-based Domino’s Pizza Inc <DPZ.N>, has been struggling to control costs in its overseas business and is in the process of exiting four of its loss-making international operations.

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(This story corrects paragraph 4 to say CEO David Wild announced his intention to retire in August, not retired in August.)

Reporting by Shanima A

Source: Yahoo Finance UK

UK’s Domino’s Pizza franchise to exit four international markets

October 18, 2019

Britain’s Domino’s Pizza Group will exit its international markets, where it has been facing mounting losses.

“We have concluded that, whilst they represent attractive markets, we are not the best owners of these businesses,” outgoing chief executive officer David Wild said.

 
The company, which is a franchise of US-based Domino’s Pizza Inc, said third-quarter group system sales rose 3.4 per cent to £313.5 million (€361 million) on strong demand in the UK and Ireland.

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The British company owns Domino’s operations in Switzerland, Iceland, Norway and Sweden, and is a minority shareholder in the Germany operations as well.

However, it reported a 2.7 per cent dip in international system sales, which have taken a hit from macroeconomic events, including declining tourist numbers in Iceland.

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Europe’s economy has slowed this year as the US-China trade tensions weakened global growth, and consumers and businesses in and around the United Kingdom worried about the impact of Brexit on jobs and incomes.

The company, which has 57 stores in Norway, said it had implemented a turnaround plan in the country during the quarter, but early signs have been mixed and improvement in sales were weaker than expected.

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The decision to exit these markets comes a few months after the company announced the retirement of its CEO Wild, while in the midst of trying to resolve a profit sharing row with disgruntled franchisees in the UK and Ireland. – Reuters

Source: Irish Times

Elm Park Domino’s Pizza in bid to extend opening hours to 3am

July 14, 2019

A Domino’s Pizza takeaway in Elm Park is applying to extend its opening hours to 3am despite opposition from Havering Council’s planning department.

The Domino’s in Tadworth Parade applied to the borough’s licensing team on June 8 for permission to change its opening hours from 9am-1am to 11am-3am.

 
The application will now be heard by the borough’s licensing sub-committee at a town hall meeting on Friday, July 26.

It is made clear in documents provided to the council that customers will only able to collect pizzas from the site until 11pm, and from then until 3am pizzas will only be provided by delivery drivers.

In a detailed submission, the franchise director Satvir Gosal outlines how the restaurant will continue to meet its current licensing objectives including: the prevention of crime and disorder, public safety, protecting children from harm and the prevention of public nuisance.

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It reads: “The store is a franchise of the worldwide Domino’s home delivery pizza chain.

“Domino’s has been in business since 1960 and during that time, has developed a system of business which primarily involves a home delivery service. “Whilst it is possible to collect our products from the store, the vast majority of our business is delivering pizzas and other products we sell to people’s homes.

“We are governed by the rigorous standards set out in the Domino’s Franchise Agreement and these relate to all aspects of operating the business, from the preparation of ingredients right through to the manner in which the product is delivered to our customers.

“We are mindful of our obligations to our staff, our customers, and others, for example local residents, who may be affected by the operation of our business.”

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In a bid to prevent littering, no single slices of pizza will be served after 11pm, and the store will take in no deliveries between 11pm and 8am.

One resident has objected, as have the borough’s planning team.

The resident wrote: “This company has a business model of supplying food via a delivery service and if was allowed to go into the early hours of the morning would cause noise disturbance due to delivery vehicles driving around a quite area.

“There is no usual traffic late at night and I do believe this would therefore disturb a usually quiet neighbourhood.”

The planning department insists that “granting a licence with such a late finish clearly goes against Havering’s Licensing Policy.

“The premises is situation in a mixed use area where there are domestic properties directly above the shop and along the rest of Tadworth Parade.

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“There is the potential that by granting a licence until such a time, it may impact on local residents, especially those living above the premises.

“There is the potential that the coming and going of delivery drivers, using cars or scooters as means of delivery, the revving of engines and slamming of car doors could cause a disturbance or noise nuisance to residents.”

The application will be determined at a Havering Town Hall meeting at 10.30am on Friday, July 26.

By Matthew Clemenson

Source: Romford Recorder

Domino’s Pizza set to open new store at building owned by Portsmouth City Council

June 20, 2019

Domino’s Pizza is taking the lease for the ground floor unit of Portsmouth City Council-owned Illustrious House in Winston Churchill Avenue. The block was opened in 2017 and has 16 affordable flats.

The unit will join the franchise’s stores in Cosham High Street; London Road, North End; and in Fratton Road.

 
But a senior councillor has said no further council-owned properties will be leased for fast food outlets unless that is their current use.

Councillor Steve Pitt – cabinet member for culture and city development – said: ‘I don’t want it to be seen for the council to be increasing the number of takeaway outlets in the city.

‘The council has all sorts of corporate priorities, many around healthy living and a cleaner environment, and I don’t think that meets our corporate priorities.’

He said when he found out about the lease negotiations it was too late for the council to pull out.

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But he added: ‘I’ve made it clear to officers that in my view we should not be letting council properties to fast food outlets unless of course it’s already a fast food outlet.’

Conditional planning permission has been granted for the change of use.

A highways engineer said moped delivery drivers will be tempted to join traffic on a roundabout in Winston Churchill Avenue despite there being no junction.

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The unnamed engineer who monitored the Fratton Road branch for an hour at peak time saw 60 trips to the store but said the new store is unlikely to hit this number. They had concerns about mopeds.

The engineer’s comment said: ‘Whilst a loading area is available to the rear of the site, the route to reach it is convoluted and therefore unattractive.

‘I therefore find it likely that delivery vehicles will either stop outside the premises or pull onto/across the footway fronting the site in order to gain easier access.

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‘This is especially likely in the case of mopeds used for pizza delivery given the large expanses of paving immediately outside the shop and footway between Winston Churchill Avenue and Wellington Street.’

By BEN FISHWICK

Source: Portsmouth

The Domino Effect: Can This Pizza Giant Continue To Deliver Success?

June 3, 2019

With some reported sales figures as flat as its famous pizzas, Domino’s announced this month that its U.K orders have fallen (for the first quarter of this year like-for-like sales grew by 3.1%, but order volumes fell by 2.7%) and that for another year its international operations will remain loss-making.

This might be surprising news to many. Here in the U.K, the takeaway pizza market has been dominated by only 3 or 4 main players for more than a decade now, with Domino’s being one of the most well known and with branches on most suburban shopping streets across the U.K.

The first U.K Domino’s franchise branch opened in Luton in 1985 and the franchise network has seen a steady pattern of growth over the years, with just under 1,200 units now operating across the U.K

These recent figures will be another headache for Domino’s bosses, who are already facing a backlash from their U.K franchisees. Franchisees have become disgruntled at the franchisor’s decision to split geographical territories, resulting in new stores being less profitable. They are also face rising costs generally and as a result, franchisees have joined forces to demand an increased profit share. The Domino’s Franchise Association U.K and Ireland which represents around 90% of the UK franchisees, has stated that its members will not open any more U.K stores until the issues are resolved. And in a hugely public and embarrassing comedown, the pizza chain franchisor was forced to cancel its annual UK franchisee awards event last month when nearly all of the Domino’s UK franchise network said that they would boycott the event.

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Chief executive David Wild said that the group is continuing an “open and ongoing dialogue” with its unhappy franchisees to look at ways in which to resolve the dispute without simply cutting the cost of the food supplied to stores, which of course would significantly affect overall group profits. He said: ‘We’re working with our franchisees to try and resolve their concerns, but we want to resolve their concerns by finding a win-win solution. We don’t want to resolve them by finding lose-win solutions.’

With all of this in-house turmoil to deal with, its not surprising that the pizza chain may be struggling to improve its numbers.

Dominos isn’t the only Italian casual dining chain here in the U.K to be feeling the heat. Whilst not a franchise, the Jamie Oliver Italian restaurant chain last week fell into administration with a loss of around 1000 jobs. Pizza chain Prezzo also announced last year a plan to close 100 restaurants U.K wide.

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These financial troubles must in part be due to the widely reported change in casual dining habits – British consumers who are feeling the financial pinch or are Brexit-nervous either choosing not to dine out or order in but to cook at home, or using their treat night outs to sample more diverse cuisine experiences now on offer on the High Street. Pizza is also now no longer the most popular takeaway cuisine in the U.K, in third place behind Chinese and Indian food. Domino’s also faces considerable competition from independent takeaway businesses with the introduction of meal delivery services such as Deliveroo and Just Eat.

In light of all of the above, will Domino’s be able to weather the storm and remain at the top of the pizza game? It is trying to respond to customer demands, having recently introduced a new low calorie “Delight” range of pizzas, and rumor has it that a vegan pizza is in the offing. Whilst the dispute with U.K franchisees remains ongoing, Domino’s is focusing on perhaps happier overseas territories, installing a new management structure in Norway, Sweden and Switzerland where its operations have remained loss-making, and focusing on store level performance. Clearly lessons have been learned from experiences over here.

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What the Domino’s business journey to date shows us is that as a brand it is very self-aware. When customers criticized the very core of its business – its pizza recipe – it took the criticism on the chin and took the brave decision to completely scrap its existing offering and start from scratch again. They understand that their customers love them because of the convenience factor and have continued to use all technology available to improve convenience, speed and delivery for their loyal fans. So having demonstrated in the past that they are agile, customer focused and forward-thinking, there’s every reason to think that Dominos will be able to successfully navigate this particularly tricky chapter in its franchise story and continue to deliver pizza success right to our front doors.

By Fiona Simpson

Source: Forbes