Domino’s has described 2021 as a “transformational” 12 months, acknowledging its digital developments and launch of its “Domin-Oh-Hoo-Hoo” marketing campaign for order progress “above expectations”.
The marketing campaign, supported by elevated advertising and marketing investments, launched in Could to coincide with the easing of lockdown restrictions, adopted by the model’s first-ever Christmas advert.
It was the primary marketing campaign led by new CMO Sarah Barron, who joined us from Costa Espresso in January 2021. Along with her appointment, Domino’s additionally introduced its digital workforce to advertising and marketing duty for the primary time.
The corporate says it is now a “really digitally-centric firm,” with 91.2% of gross sales in 2021 coming from digital channels. This was helped by the launch of its new app, which permits for group orders and higher promotion of offers. The app alone accounted for 42% of system gross sales, up 2.2 share factors from 2020.
To proceed its digital acceleration, Domino’s has dedicated to investing round £20m over three years. As a part of this, it’ll spend money on personalization and improvement of its e-commerce app, in addition to in-store improvements to enhance buyer experiences and drive income progress.
It has additionally dedicated to rising advertising and marketing investments to assist new nationwide campaigns and promotions, each made attainable following an settlement with franchisees.
The corporate says this resolution will successfully rework the connection with franchisees and “unleash vital latent potential” and drive each short- and long-term progress.
Dominic Paul, CEO of Domino, says the settlement will enable the corporate to “herald a brand new period of collaboration the place the system will work extra carefully collectively than ever earlier than.”
Domino’s reported adjusted revenue earlier than tax within the UK & Eire for the 12 months ended 26 December 2021 of £113.9m, up 12.5% year-on-year.
Complete gross sales rose 11.2% to £1.5 billion, with like-for-like techniques gross sales up 10.9%.
In the meantime, complete orders for the 12 months rose 5.5%, with deliveries performing properly and collections persevering with to recuperate, rising sequentially every quarter because the UK started to reopen from lockdown. Collections ended the 12 months 87% above 2019 ranges.
As a part of the brand new settlement with franchisees, Domino’s additionally launched an improved grocery low cost system to encourage order progress and a brand new retailer incentive program to speed up new retailer openings.
Domino’s opened 31 new shops in 2021 and the corporate says it’s on observe to open one other 45 in 2022, with 5 having already opened their doorways this 12 months. Domino’s will increase advertising and marketing investments as a part of progress technique
In return for this funding, Domino’s has requested franchisees to decide to collaborating in new nationwide promotional offers that target each supply and pickup. This allowed Domino’s to launch its first nationwide “multi-year” value promotion contract in January that had a robust worth proposition.
The corporate additionally desires franchisees to conform to prioritize, check and undertake new applied sciences and product improvements reminiscent of GPS monitoring and to check new retailer codecs.
It is all a part of Domino’s progress technique, launched final March, which CEO Paul describes as certainly one of two “massive milestones” of the 12 months, the opposite being the take care of franchisees.
He says the brand new technique is already delivering “excellent” outcomes and a “higher expertise” for purchasers.
The corporate says it’s on observe to satisfy “not less than the higher finish” of its goal of producing gross sales of between £1.6 billion and £1.9 billion.
“This has been a transformational 12 months for Domino’s. Our efficiency continues to be robust and we have now made vital progress in comparison with our strategic plan whereas delivering on our ambition to return extra capital to shareholders,” says Paul.
“This 12 months has began properly and we now have the suitable technique and a robust management workforce to proceed to drive the enterprise ahead. We stay centered on accelerating the sustainable progress of our system collectively to create a brighter future by means of meals individuals love.”