DP Eurasia has a simple and scalable, asset-light business model, offering globally recognized pizza products at a range of price points and adapted to local tastes.
DP Eurasia’s strategy for growth is focused around four main pillars:
Focus on innovation and online ordering to drive like-for-like growth
- The Group’s ordering channel strategy is focused on development of proprietary online ordering for delivery and takeaway, as the online channel becomes more prominent in the Group’s sales mix and continues to drive like-for-like growth.
- The Group is seeking to increase its online sales to levels above 70% observed generally across Domino’s Pizza master franchisees.
Store network growth
- The Group plans to capitalise on its strong market positions in existing markets where it believes there is significant capacity for further Domino’s Pizza store locations. It intends to open new corporate and franchised stores, including “splits” of existing stores where demand supports further profitable growth. The Group considers store location from the perspective of potential sales, level of competition, number of households and GDP per capita.
- By pursuing its “castle” strategy, the Group is able to rapidly roll out clusters of complementary corporate and franchised stores, establishing greater area coverage, enabling its 30-minute delivery guarantee and building strong local brand awareness.
Leveraging scale advantage to further improve profitability
- The Group believes that the operating leverage in its business in Turkey can create further value as the store and online footprint continues to increase. The nationwide scale of the Group’s operations reinforces brand awareness, making Domino’s Pizza a household name in Turkish fast food, thereby further driving sales and the system stores’ contribution to the Group’s national advertising initiatives.
- In Russia, the Group expects to extract similar value from the operating leverage as the Group plans to continue high levels of roll-out to grow the franchise part of the business and increase overall scale of the system.
Potential for further international expansion
- While the Group’s current focus is on development of the business in its current markets, the Group may consider acquiring other master franchise licences and expanding to territories currently unpenetrated by the Domino’s System.
- Such international expansion is a discretionary strategy that the Group will consider and pursue on an opportunistic basis should valuations prove attractive.