Tue 6th Aug 2024 - Domino’s CEO – £4 lunch deal is starting to change consumers’ perception about us being expensive Domino’s CEO – £4 lunch deal is starting to change consumers’ perception about us being expensive, ‘more confident than ever’ about hitting 2,000 store target: Andrew Rennie, chief executive of Domino’s Pizza Group, has said the introduction of its £4 lunch offer is starting to change perception among consumers who still view the brand as “expensive” and he is “more confident than ever before” about hitting its target of operating 2,000 stores by 2033. Domino’s introduced the lunch deal in April as it saw the daypart as a “key opportunity for growth”. The menu features 14 items including a selection of “little pizzas”, which are all under 600 calories; tortilla wraps; four chicken strippers; and four chicken wings and fries. Cookies are also available on the menu at £3 for two. Speaking following the company’s half-year results, Rennie said: “Lunch is a long-term strategy. For me, it’s not about where we are now, because we are starting from a pretty low base – it’s about where we are in two or three years’ time. Among some consumer we’re still seen as quite expensive – we’re starting to change perception with the £4 lunch deal – everything we have seen so far shows it to be working well. Some competition appears to be falling away in the market but we run our own race – what we have done has driven growth rather than it being influenced by others. Our customers order about once a quarter and we think we can lift that frequency, particularly with the introduction of the loyalty scheme, which is now in its second pilot phase. We are always trying to offer value to our customers. However, it’s not all about pricing – it’s about striking that balance with service. No one wants their pizza delivered cold for example. We already provide good value – it’s about making sure we push that message, and the lunch deal is helping with that.” In terms of costs, Rennie said: “Energy prices are coming down. 2024 is looking stable on the cost front and for 2025 there are no shocks at this stage but you never know what’s round the corner. However, at this time we’re pretty confident in the outlook, which is why we’re passing on more of those savings to our franchisees – and our customers.” Rennie said while the business received a boost from the Euro 2024 football tournament, the Olympics in Paris has “not really added to sales”. He told investors when the company turns 40 next year, it will have nearly 1,400 stores. While rivals such as Pizza Hut and Papa John’s have been closing sites, Domino’s plans to open 70 outlets this year. The business opened 22 outlets in the first half of 2024. Rennie added: “Our focus is on our core business in the UK and Ireland. I’m more confident about our 2,000 store target than ever before. We’re building a strong business here.” Domino’s features in the Propel UK Food and Beverage Franchisor Database, which is an exhaustive guide to the companies offering a food and beverage franchise in the UK and is available exclusively to Premium subscribers. The database is updated every two months and the next version will be sent on Wednesday, 14 August and feature 270 businesses. Companies can now have an unlimited number of people receive access to Propel Premium for a year for £995 plus VAT – whether they are an operator or a supplier. The single subscription rate is £495 plus VAT for operators and £595 plus VAT for suppliers. Email kai.kirkman@propelinfo.com to upgrade your subscription.