Domino's Pizza to open seven new stores

Domino's Pizza plans to open seven new stores in the Republic this year, creating 225 new jobs, the company said yesterday as…

Domino's Pizza plans to open seven new stores in the Republic this year, creating 225 new jobs, the company said yesterday as it announced a 15 per cent increase in sales in Britain and Ireland in 2007.

New menu choices, including its rugby-themed Scrummy pizza, helped the pizza delivery chain overcome higher ingredient costs and make a 33 per cent gain in pre-tax profits, which came in at £18.7 million (€24.7 million).

Domino's does not publish separate profit figures for its 34 stores in the Republic, but a company spokeswoman said it had continued its strong performance here. Domino's said it would need to expand its "commissary" storage and other shared franchise services facility in Naas, Co Kildare, in order to cope with customer demand.

Planning permission is pend- ing on the seven new outlets. The chain added 75 jobs to its Irish workforce last year, opening three new outlets and signing up nine franchisees.

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Domino's Irish online and SMS ordering service is accounting for 5 per cent of deliveries in its first year of operation and is performing "ahead of expectations", the spokeswoman said.

Chris Moore, chief executive of Domino's Pizza in Britain and Ireland, said trading in the first six weeks of 2008 was healthy, with sales up 11 per cent.

Domino's profits were earned despite sharp rises in the cost of raw materials, particularly milk and wheat, with the problem of rising input costs exacerbated when Domino's cheese supplier went into receivership. Prices were passed on to franchisees, who in turn added an average of 4 per cent to pizza prices.

The Scrummy pizza, introduced to capitalise on last autumn's rugby world cup, is a meaty affair laden with pork meatballs, pepperoni, chorizo, Tandoori chicken and smoky bacon.

Laura Slattery

Laura Slattery

Laura Slattery is an Irish Times journalist writing about media, advertising and other business topics