Bullish expansion pushes Domino’s Pizza 1Q growth

By LYDIA NATHAN / Pic By TMR File

Dommal Food Services Sdn Bhd’s aggressive expansion of Domino’s Pizza chain across the country has resulted in an almost double-digit growth in revenue for the franchise in the first quarter (1Q) of 2018.

Domino’s Pizza Malaysia operations senior GM Shamsul Amree Ab Rahman said the company runs 216 stores nationwide now.

“Our revenue every year has been experiencing a double-digit growth. In the last three years, we have opened 90 stores, and at least 40% of our growth come from the new outlets.

“This shows our commitment in the brand to continuously gain more customers,” he said to The Malaysian Reserve (TMR) after the launch of its new dessert menu in Kuala Lumpur recently.

Shamsul Amree added that the company is expecting a significant growth in the second half of the year from the expansion into East Malaysia and the addition of 15 to 20 stores in Peninsular Malaysia.

The group has spent some RM20 million of its capital expenditure on the expansion of stores this year.

“We will also enhance our online ordering technology as more than 50% of orders received last year were via the website, surpassing the orders made via call centre for the first time,” he said.

He added that the company will open five stores in East Malaysia to meet the strong demand there.

Domino’s Pizza Malaysia marketing GM Linda Hassan told TMR that the menu is still being figured out for the stores in East Malaysia and may vary from each region.

“We have to see what the consumers want,” she said, adding that growth in the region has been good since the first store launch in Singapore in 2009.

“We hope to open our 30th store this year in Singapore. The majority of the menu is fairly similar, but there is some differentiation to what the customers want. For example, chilli crab is a favourite in Singapore, so we have a pizza version of that there.

“In terms of desserts, we notice people are more familiar with the up-market kind of desserts as many foreigners live there. So this year, we will be launching churros as a dessert in Singapore,” she told TMR.

As for the government’s upcoming implementation of the Sales and Service Tax mechanism, Shamsul Amree said the group will comply with the structure while striving to keep the operating cost low.

Meanwhile, the pizza chain launched its third dessert menu — the blueberry cheesecake lava cake — which is available in all stores now.

Shamsul Amree said dessert sales account for 10% of total sales, and is confident that it will increase to 30%.