Domino's Pizza celebrates £1 million web orders

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Domino's Pizza is celebrating the success of its ecommerce operations with customers hungry for ordering from its menu over the web - to the tune of £1 million worth of orders in a single week last month.

The bumper sales period marked the first time the company's web-based sales had hit the seven figure mark and didn't take into account the popularity of Domino's multi-channel business model, which also allows customers to satisfy their appetites by text or interactive TV.

"Exceptional service is at the heart of our business and we're proud of our position as an innovative multi-channel retailer, offering more ways to order than any other pizza company," said Robin Auld, the company's marketing director.

"Last year, web sales reached £23 million in total and we responded to customer demand by significantly increasing our online presence - we're delighted to see that paying off with £1 million worth of sales in a week for the very first time."

Domino's Pizza, which launched its SMS-based ordering service earlier this year, recognised the potential of the web as a key sales channel quite early on and has spent much time beefing up its online presence.

That work is clearly paying off, according to a trading statement issued at the beginning of November which reported that Domino's ecommerce platforms (www.dominos.co.uk and www.dominos.ie) represented 15 per cent of its delivered sales in the UK and were showing year-on-year growth of more than 60 per cent.

This increased focus on the world of clicks won't be to the detriment of the company's traditional bricks and mortar business, with Domino's vowing to absorb most of the cost associated with the rising price tag of mozzarella initially rather than passing it straight on to franchisees.

"The strong sales momentum and good control of overheads has allowed us to absorb the one-off cost arising from the extraordinarily rapid increase in the cost of cheese," said Domino's Pizza chief executive Stephen Hemsley. "Whilst absorbing such costs is unwelcome, we must always be mindful of the store-level economics and our long-term relationship with franchisees who drive our future growth. Despite these costs and the additional interest on the share buybacks, I am pleased to reconfirm that your company remains comfortably on track to meet the City consensus forecast for the year."

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