Domino’s steps in to bolster stores hit by ‘changed behaviour’

Domino’s has been forced to provide targeted support for some of its franchisees as customers changed behaviour in the wake of the COVID-19 trading restrictions.

Apr 24, 2020, updated Apr 24, 2020
Managing director Don Meij said Domino's was helping franchisees respond to changed trading conditions. (Photo: EPA/KOEN VAN WEEL)

Managing director Don Meij said Domino's was helping franchisees respond to changed trading conditions. (Photo: EPA/KOEN VAN WEEL)

Fewer customers were using cash and many were ordering at different times, on different days, or from different stores than their usual order, the company said.

Managing director Don Meij said customers were also not following their normal work and holiday patterns and stores closer to universities, central CBD locations and holiday regions had experienced sales impacts.

“We are focused on helping our stores respond to changed trading conditions; guiding some stores on how to manage increased order volumes while maintaining social distancing, as well as providing tangible support to those stores that are seeing near-term declines specific to their local markets,” Meij said.

The company has decided to relax debtor payment terms where appropriate and make additional investments in advertising.

The company said it was seeing a material shift to food delivery in all operational markets as customers follow recommendations to stay home where possible.

Stores have been hiring more team members to support the change, as customers replaced their takeaway meal with zero contact delivery.

In Australia and Europe, same-store sales performance was positive, but new consumer behaviour was affecting individual stores in each market unevenly.

Underlying consumer demand for Domino’s Pizza was consistent with the principal challenge being how to supply that demand in the current environment.

Its stores in France started reopening progressively in the first week of April in consultation with franchisees and about 70 per cent had opened their doors. In New Zealand, Domino’s stores will reopen for trade from next Tuesday.

Domino’s New Zealand has advertised for an additional 1000 delivery drivers, in expectation of customers opting for delivery versus takeaway, as has occurred in other markets.

Same-store sales for Australia were consistent at a national level, however, this included significant changes in individual store performances that closely reflect local trading conditions, both positive and negative.

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