Domino’s Pizza plans to slow down its expansion due to a tougher planning environment and now expects to open 50 to 60 new branches in full-year 2024.
In March, the company announced plans to increase the number of outlets it has in the UK and Ireland by more than 50% to 2,000 by 2033, with more than 70 new branches in full-year 2024. However, it has only opened 34 branches this year so far with 20 franchise partners.
In a trading statement, the company said that it plans to open branches in “virgin territories” and segmenting existing regions. It is also focusing on smaller territories with fewer locations, which are performing well due to limited competition.
Given a “slower planning environment”, the company now expects to open between 50 and 60 new branches in full-year 20242024, with a target to open 1,400 branches by the end of full-year 2024.
Andrew Rennie, chief executive, said: “We’ve got great momentum in the business which reflects the intense focus from all of us at Domino’s and our brilliant franchise partners on driving growth in delivery orders, our biggest sales channel.
“In an uncertain environment we are well placed to continue our strategic progress due to the strength of the Domino’s brand and system. We continue to assess additional value-enhancing opportunities to build a larger, more cash-generative business which delivers strong and consistent returns.”
Photo @ Dinendra Haria/SOPA Images/Shutterstock
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