News that the recipe for success was going to be more complicated has since pulled them down to 582 pence.īut Anthony Cross, special situations fund manager at Liontrust AM, one of the 20 largest shareholders in Domino’s, said he would be patient while it gets the German formula right. That kind of demand, coupled with its ambitions for Germany, a country with 14 million more homes than Britain, helped Domino’s shares hit an all-time high of 710 pence in June. In 2012 Domino’s comparable margin was 8.4 percent on sales in the UK and Ireland, its core market, where it sold the majority of 61 million pizzas last year. German market leader Joey’s says its stores can offer a pre-tax profit margin of 10-14 percent. Its top four pizza delivery brands achieved total turnover growth of 180 percent in the last decade, according to trade magazine Food Service. Pizza often heads Germany’s favourite food lists. Not that there is any lack of pizza outlets in a country that acquired a passion for pizza from Italian migrant workers after World War Two.Ī single busy street in western Berlin offers a choice between Cafe Pasta Pizza, Pizzeria Senza Nome, Porto Fino, Venezia, City Pizzeria or Mr Pizz. It also took a while to grasp German preferences for Italian-style thin crusts over the cheese-laden, deep pan pizza popular in Britain, and for steadily low prices over promotions.īatchelor believes that armed with better knowledge of Germany’s worker-friendly pay structures, a menu tailored to local taste and experienced franchisees to run its stores, the company can deliver in a market under served by big chains. ![]() ![]() ![]() Its German growth has stumbled chiefly over a rise in minimum pay for restaurant staff that is unexpectedly being applied to pizza delivery firms. The company is thriving in its home market and has almost trebled profit in six years to 50 million pounds ($80 million), feeding a core army of teenagers and young adults. Domino’s has halved its original target of 400 stores by 2020, and pushed its break even forecast for the German business back as much as two years to 2017.
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