Domino’s investment in innovative digital platforms for allowing customers to order its pizzas has proven to be a great success. In its full year result released on Tuesday, it reported a 26% rise in net profit to $26.9 million for the financial year ended 30 June, up from $21.4 million in the previous year.
Chief executive Don Meij on Tuesday said new products and expansion into social media and online ordering contributed to the company’s profit growth.
Domino’s Pizza currently has six online ordering platforms and recently launched a world-first Facebook ordering platform to expand its social media presence. Domino’s Facebook site not only takes pizza orders, but also provides the company with real-time customer feedback and the ability to launch new products relatively inexpensively. The success of these digital platforms proves Domino’s has realized the importance of customer convenience and caters to a ‘lazy’ consumer.
The low operational costs of going digital, have helped Domino’s in growing its profit year on year.
Online sales are expected to make up 55% – 60% of total sales in Australia by June 2013. Of this, 50% of these online sales are expected to be orders made on a mobile device. It is expected that Domino’s 7th digital platform, the yet to be released iPad app, will allow customers to literally build their own pizza by adding and removing topping with their fingers. These digital innovations are seeing Domino’s Pizza transforming itself into an online company that sells pizzas!
Disclosure of Interest: Milford holds shares in Domino’s Pizza on behalf of clients.
Victoria Harris
Research Analyst