The master franchisee for Domino’s Pizza in China aims to open 350 new stores this year, boosting its footprint by about a quarter
image credit: Bamboo Works
Key Takeaways:
- DPC Dash’s revenue rose 25% last year, as its profit more than doubled on a rapid expansion that included the net addition of 307 new stores during the year
- The master franchisee for Domino’s Pizza in China reported a slight same-store sales decrease for the year, though its tier one cities remained positive for that metric
Why settle for 98% of the pie when you can have the whole thing?
That’s what DPC Dash Ltd. (1405.HK), operator of the Domino’s Pizza (DPZ.US) chain in China, may have been thinking when it recently completed a clean sweep of the leader board for the 50 best-performing new Domino’s stores worldwide during their first 30 days. DPC revealed it achieved the milestone in its latest results announcement published on March 25, upping its previous claim to 49 of the 50 top spots midway through last year.
The company has powered its way to the top echelons of China’s pizza market through an aggressive expansion campaign, much of it focused on smaller Chinese cities, with names less familiar to most Westerners like Handan, in Central China’s Hebei province, and Hohhot in the Inner Mongolia region.
Those smaller markets have become some of DPC’s biggest cash cows, captivating local populations that sometimes line up for hours to sample a type of Western food often considered unusual and even exotic. As a result, many of the 50 top performers from DPC’s portfolio are in smaller markets. One of those, its first store in the Northeastern city of Dalian, generated a company record of close to 700,000 yuan, or about $100,000, on its first day of business in last year’s fourth quarter.
“It is a true demonstration of the strong momentum and recognition of the Domino’s Pizza brand and high demand of our products and services from the customers in China, forming a solid foundation of our continued rolling-out of our store footprint,” the company said in its announcement.
Despite taking over the Domino’s global leader board, the news was hardly all rosy for DPC as the company and its peers continued …
This post was originally published here
