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Tag: pizza

  • Domino’s Pizza profit falls on soft Australian performance

    Domino’s Pizza profit falls on soft Australian performance

    While quick-service retailer Domino’s saw revenue and online sales improve over the year to June 30, net profit fell 4.6 percent to $115.9 million, with growth in Australia and New Zealand softer than anticipated.

    However, the business’ efforts in Japan and Europe saw international EBITDA improve to $154.5 million – overshadowing the local result of $127.9 million.

    “Our international operations today account for more than half of our earnings, and they will be the largest driver of our future growth,” Domino’s group chief executive and managing director Don Meij said.

    Global sales grew by 11.9 percent to $2.9 billion, while global online sales grew 18.2 percent over the year to $1.9 billion, processing more than 66 million orders – or more than 2 orders per second.

    According to Domino’s Australia and New Zealand chief executive Nick Knight, in addition to the softer domestic performance the team made some decisions which created short-term headwinds for the business – but which they are confident will result in medium and long-term benefits.

    “We are confident in the progress of our strategic initiatives, including our investment in technology and new marketing campaigns,” Knight said.

    “Our world-first DOM Pizza Checker is already helping to deliver meaningful improvements to the quality of our pizzas, which customers recognize.”

    Australian and New Zealand sales grew 4.6 percent to $1.17 billion, or 2.4 percent on a same-store-sales basis.

    Operations 360, the business’ initiative to deliver performance data to franchisees, allowing the opportunity to learn from mistakes, as well as provide advice and training, has also led to the exit of 22 under-performing franchisees.

    Knight noted that, in some cases, this was due to franchisees having been found to have deliberately underpaid staff.

    Meij said domestic margins were compressed due to an increased number of corporate stores to make up for these exiting franchisees.

    Domino’s is facing a class-action lawsuit from in-store and delivery staff who claim to have been underpaid over a five-year period.

    According to the claim, Domino’s told franchisees to pay delivery drivers and in-store workers under a series of incorrect employment agreements. Domino’s rejects the claim and confirmed in June that it would defend the proceeding.

    While many believe the recent string of retail underpayments are the result of unintentional mistakes, almost 60 percent of the over 200 respondents believe them to be an intentional decision to cut costs.

    Do you think underpayment in the retail and hospitality sector is mostly…

    Domino’s expects same-store-sales growth to grow at a rate of between three and six percent annually over the next three to five years.

    The QSR chain additionally will grow store count by between seven and nine percent annually over the same period,  intending to invest further into the growth of its network.

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  • Yum China speeding up expansion plans

    Yum China speeding up expansion plans

    Yum China plans to invest up to US$525 million opening between 800 and 850 new stores in the current financial year.

    Most of the new stores will be KFC outlets and of its new cafe chain Coffii & Joy.

    The protections were included in the company’s second-quarter results released overnight, which showed total system sales up 10 percent year on year to US$2.12 billion, with KFC leading the way at 12 percent. Sales at Pizza Hut rose by 4 percent.

    While sales were up, much of the growth was driven by network expansion. Same-store sales grew 4 percent, with a 5-per-cent increase at KFC and a 1-per-cent increase at Pizza Hut.

    Restaurant margin slipped from 15.1 percent to 14.7 percent, however, operating profit rose 6 percent from $193 million to $204 million.

    Net Income increased 24 percent from $143 million to $178 million, primarily due to the increased operating profit and a gain from the company’s equity investment in Meituan Dianping.

    During the quarter, Yum China opened 178 new restaurants taking its store count to 8751 across more than 1300 cities.

    “We continued to capitalise on market opportunities across China with aggressive, KFC-led store expansion,” said Yum China CFO Jacky Lo. “With a strong cash payback period for new KFC stores and many untapped opportunities, we intend to continue to rapidly expand our store footprint in the second half of the year.

    “Looking forward, we expect overall sales growth to moderate as KFC begins to lap several key sales drivers, including successful value campaigns that we initiated in the second half of last year. However, we remain confident that our strong foundation and commitment to innovation throughout our business will power continued growth for Yum China. We will continue to create new and exciting menu items, and leverage our leadership in digital, data and delivery to meet the evolving needs of our consumers.”

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  • Domino’s To Use Self-Driving Vehicle To Deliver Pizza

    Domino’s To Use Self-Driving Vehicle To Deliver Pizza

    Domino’s Pizza and Nuro, a robotics company have partnered to bring out an autonomous pizza delivery unmanned vehicle known as the R2. Dominos will use Nuro’s unmanned fleet to serve select Houston Domino’s customers who place orders online. This partnership will expand Nuro’s autonomous delivery operations, which have been running in the Houston metro area since March 2019.

    Select customers who order online from one of Domino’s participating stores will have the opportunity to use Nuro’s autonomous delivery. Once they have opted in, customers can track the vehicle via the Domino’s app and will be provided with a unique pin code to unlock the compartment to get their pizza.

    Kevin Vasconi, Domino’s executive vice president and chief information officer, said, “We are always looking for new ways to innovate and evolve the delivery experience for our customers. Nuro’s vehicles are specially designed to optimize the food delivery experience, which makes them a valuable partner in our autonomous vehicle journey. The opportunity to bring our customers the choice of unmanned delivery experience, and our operators an additional delivery solution during a busy store rush, is an important part of our autonomous vehicle testing.”

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  • Shakey’s Pizza Asia Ventures acquires Restaurants

    Shakey’s Pizza Asia Ventures acquires Restaurants

    Shakey’s Pizza Asia Ventures has fully acquired local Philippines restaurant chain Peri-Peri Charcoal Chicken.

    The firm has also recently signed a memorandum of understanding to buy artisanal pizza brand Project Pie, including all assets and intellectual property. The brand was previously owned by Shakey’s parent firm Century Pacific Group and Singaporean sovereign wealth fund GIC.

    As of June 1, Shakey’s is now the owner-operator of all Peri Peri stores owned by the company, as well as brand owner and franchisor of the remaining outlets.

    Peri-Peri now has 23 locations throughout the Philippines.

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  • Domino’s Pizza invests in technology to improve quality

    Domino’s Pizza invests in technology to improve quality

    Domino’s Pizza is taking on one of its customers most common complaints, that the ordered pizza “doesn’t look like it should”, with a nationwide roll-out of its Pizza Checker technology.

    The technology takes the form of a camera system that grades individual pizzas on certain qualities, such as the topping volume and spread, as well as the amount of cheese used, and it’s already showing results according to Domino’s Australia and New Zealand chief executive Nick Knight.

    “So far, it’s analysed more than one million pizzas, and there is a lot of learning that we’ve captured,” Knight told analysts during a briefing call last week.

    “It’s early days, but I’m really pleased with what we’re seeing. Team members are using this technology to put a much needed extra focus on product quality.”

    According to Knight, while customers so far can’t see or tell that the pizza they receive has been ‘checked’, customer metrics show that they are reacting positively to the results.

    “In my experience, when we’ve tackled one of the biggest customer tensions, like we did with GPS drivers, those things have flowed through to sales,” Knight told analysts.

    The technology uses artificial intelligence to grade pizzas, and will eventually allow customers to view a real-time image of their pizza on the cut bench, and will notify them if their pizza failed the process – resulting in a remake, though it’s possible this situation could lead to longer delivery times.

    The technology is now active across all Australian and New Zealand Domino’s stores.

    During the call last week, Knight also discussed Domino’s effort to improve the overall health of its franchise business through its Operations 360 initiative, which launched 18 months ago.

    The initiative provides franchisees with data on sales drivers at the store level, and gives the company’s operations team members an opportunity to provide advice and training in those areas where certain franchisees may be struggling.

    While this has helped some franchisees to improve, it has also led some franchisees to exit the business, Knight said.

    “Unfortunately, some franchisees don’t have the passion or capability to take their business to that level, and they aren’t able to run with us,” Knight told analysts.

    To help these franchisees in their exit, Domino’s has purchased some franchised stores back from franchisees and will, in the short term, run them as corporate stores.

    Knight said some franchisees who left may have been unhappy, and cautioned that they might lodge proceedings in an attempt to bargain with the business, or out of a genuine issue.

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  • Venture Capitalists invests in Vietnam’s Pizza 4Ps

    Venture Capitalists invests in Vietnam’s Pizza 4Ps

    Private-equity firm Mekong Capital has invested in Vietnamese pizza franchise Pizza 4P’s via the Mekong Enterprise Fund III.

    The franchise was set up in 2011 by Japanese owners and has grown its network of locations to 11 stores nationwide serving more than 4700 customers per day. The company has also developed a fledgling line of packaged consumer goods, such as specialty cheeses.

    “We are incredibly excited to partner with Pizza 4P’s,” said Mekong Capital founder Chris Freund. “Not only because we are huge fans of their product and see the potential for the brand to grow considerably, but also we are very inspired by the vision of the founders, Masuko and Sanae.”

    Mekong Enterprise Fund III currently has US$112.5 million in committed capital. Pizza 4P’s is the ninth company to receive investment from the fund.

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  • Pizza Hut Malaysia Plans More Store Openings

    Pizza Hut Malaysia Plans More Store Openings

    The 400th Pizza Hut Malaysia store has opened at Central I-City Shah Alam.

    To celebrate the landmark moment in the franchise’s history, Pizza Hut is giving 4000 pizzas to diners, as well as an additional 400 pizzas to 10 local charities. It was also selling its personal-sized pizzas for just RM4 (around US$1) at the end of last month.

    A statement by COO Loi Liang Tok revealed that the brand intends to open its 408th store by the end of the year, with new locations in Sabah, Sarawak, Perak and Penang. The brand is also rolling out an upgraded serving system in its fast casual delco stores, equipped with faster food preparation equipment and some self-service features.

    “The expansion of offerings through our new store format and the enhancements of our existing stores enable us to up our ante in staying relevant and help us to serve our community better,”

    QSR Brands MD Dato’ Seri Mohamed Azahari Mohamed Kamilw, “while offering vibrant dining experiences and staying delightful.”

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  • Shakey’s to buy Peri-Peri Charcoal Chicken chain

    Shakey’s to buy Peri-Peri Charcoal Chicken chain

    Philippines restaurant chain operator Shakey’s Pizza Asia is buying the Peri-Peri Charcoal Chicken brand.

    The firm filed details of the deal with Peri-Peri’s operator I-Foods at the Philippine Stock Exchange this week, although the transaction cost has not been released. A representative for the business said the price was not substantial relative to the firm’s market capitalisation, and that the acquisition will be financed by a combination of internally generated cash and debt, most likely to be completed by mid-year.

    The deal is expected to affect Shakey’s bottom line this year, but boost profits in the long run.

    Peri-Peri Charcoal Chicken operates 23 outlets in metropolitan Manila, 40 per cent of which are run under franchise agreements.

    “The brand now has a strong following and recently gained even more traction,” said Shakey’s president and CEO Vicente Gregorio, “evident in its strong same-store sales growth last year amidst the more challenging macroeconomic environment, and the amount of interest in new stores from potential lessors and franchisees.”

    “We are excited by the potential of Peri to scale,” added  Shakey’s chairman Christopher Po. “We expect it to be an important future growth driver for our fast casual chain restaurant business.”

    The firm also has plans to expand its core offering – US brand Shakey’s Pizza, for which the firm has perpetual rights in several broad territories, including most of Asia. It plans to open 20 new branches this year, which will see it operating 248 locations by next year.

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  • RFG back to square one in asset sale process

    RFG back to square one in asset sale process

    Retail Food Group on Tuesday said sale talks with a potential buyer of its Donut King, Pizza Capers and Crust businesses have ended in disappointment, following months of negotiations.

    The deal fell through after the two parties failed to reach a formal binding agreement on terms that the board considered to be in the best interests of the company as a whole, RFG said in a statement.

    “Our Donut King and QSR brands [Pizza Capers and Crust] continue to provide solid earnings contributing to the company’s underlying profit,” Peter George, executive chairman of RFG, said.

    “The potential sale of any of these assets must be at a price not only acceptable to our board but in the best interests of our shareholders.”

    The franchisor, which operates Gloria Jean’s Coffees, Brumby’s Bakeries, Donut King, Michel’s Patisserie, Di Bella Coffee, The Coffee Guy, Café2U, Pizza Capers and Crust, had been pursuing an asset sale to help pay down its net debt of roughly $258.9 million, after restructuring costs and write-downs wiped out its declining profit in the first half of FY19.

    An RFG spokesperson said the failure to sell its Donut King and QSR brands will not impact the company’s recent agreement with NAB and Westpac to reset its financial covenants and waive a review of the business.

    The company continues to work closely with its lenders and maintains their support, the spokesperson said.

    The RFG board is investigating a range of other options to pay down its debt, including equity, other debt funding options and potential asset sales, and will update the market of any definitive option being reached.

    In response to a report that the Australian Securities and Investments Commission is “keeping an eye” on the franchisor, particularly around big announcements, the RFG board said it has not been made aware of any current investigations.

    A spokesperson for ASIC told that “ASIC supervises the market, so we monitor all share trading”.

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  • Mexican investor Bought three quarters of Restaurant Brands

    Mexican investor Bought three quarters of Restaurant Brands

    Restaurant Brands has announced Mexican investor Finaccess Capital SA de CV now has a controlling stake in the company after acquiring three quarters of the company’s shares.

    The deal closed on March 26 following Finaccess’ offer through its subsidiary, Global Valar SL, for up to 75 per cent of Restaurant Brands New Zealand shares at NZ$9.45 cash per share.

    Finaccess informed Restaurant Brands, the New Zealand franchise operator of Pizza Hut, KFC and Carl’s Jr, on Tuesday that it has paid shareholders for shares taken up under the partial takeover.

    The Mexico-based company, which also has a stake in AmRest, which operates KFC and Pizza Hut among other brands across Europe and China, said in its offer letter last year that it chose not to make a full takeover bid because there were benefits to Restaurant Brands remaining on the NZX and ASX.

    “By remaining a public company, Restaurant Brands will have access to capital to fund future growth while also providing existing shareholders an opportunity to continue participating in the business over the long term,” Finaccess said at the time.

    Restaurant Brands today also announced the appointment of Jose Pares Gutierrez and Emilio Fullaondo Botella as directors, and resignation of Stephen Copulos, Vicky Taylor and David Beguely as directors.

    As required by the NZX Listing Rules, Gutierrez and Botella will each stand for re-election at Restaurant Brands’ next annual meeting of shareholders.

    Ted van Arkel and Hamish Stevens will each remain on the board as independent directors, and Van Arkel will continue as chairman, until Restaurant Brands’ next annual meeting of shareholders on July 10. Both have announced their intention to retire as directors at the conclusion of that meeting.

    Gutierrez, the CEO of Global Valar SL and its parent, Finaccess Capital, is also the chairman of the board and a proprietary director of AmRest Holdings SE, the director of the board of Crown Imports, Chicago, Il, vice chairman of the board of MMI, Toronto, Canada, director of the Board of DIFA, Mexico, and former member of the Beer Chamber of Mexico.

    Botella, a senior executive with over 23 years of experience in the beer industry, has previously worked in a number of finance roles for Grupo Modelo, including four years as chief financial officer.

    Following the acquisition of Grupo Modelo by AB InBev in 2013, Gutierrez oversaw significant cultural and organisational changes at AB InBev (Mexico) as vice president, human resources (to 2017) and vice president, Projects until his resignation in January 2019.

  • Domino’s Pizza Bangladesh opens first Restaurant

    Domino’s Pizza Bangladesh opens first Restaurant

    Domino’s Pizza Bangladesh has opened its first store, in the capital city, Dhaka.

    The store features a new ‘pizza theatre’ design with in-house seating offering a front-row view of pizza-making.

    More stores  are planned later this year.

    Domino’s Bangladesh is operated by master franchisee Jubilant FoodWorks and its local operator Golden Harvest.

    “We are excited to launch the first Domino’s restaurant in Dhaka and look forward to offering a menu that keeps the needs and preferences of local customers in mind, while also offering the best of the brand’s international menu,” said Pratik Pota, Jubilant FoodWorks CEO and director.

    Pota said the brand will also launch an ordering app that will help “redefine the pizza-ordering experience” for consumers in Bangladesh.

    “We are confident that Domino’s is going to be one of the most-loved pizza brands in Bangladesh,” said Rajeeb Samdani, MD at Golden Harvest Group.

    “The open-kitchen design will be innovative in this market and will show our commitment to food safety and quality standards.”

    Founded in 1960, Domino’s now operates in more than 85 markets worldwide, with more than half of its global retail sales coming from international stores.

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  • Pizza Hut Singapore appoints BLKJ as Singapore creative agency of record

    Pizza Hut Singapore appoints BLKJ as Singapore creative agency of record

    Pizza Hut Singapore appoints BLKJ, an independent creative agency, as Agency of Record to resonate with young adults while maintaining its strong heritage among families. BLKJ, one of the fastest growing independent creative agencies in Singapore, was established in 2017. BLKJ will be managing all Pizza Hut’s upcoming campaign launches. They will lead all marketing efforts in content creation, creative designs and art direction. BLKJ will be tasked to deliver innovative ideas and refresh the Pizza Hut brand in Singapore.

    “We were bowled over by the boldness of their ideas, their appreciation for the brand challenges and spot on solutions to win the hearts of the Millennials. Most of all, it was a meeting of minds and we believe this is fundamental to any successful partnership,” says Joyce Tan, Senior Director, Marketing & Food Innovation, Pizza Hut Singapore. “We launched ‘Your Slice of Simple’ campaign last year and believe that BLKJ is a strong partner to help reinforce and cement this positioning for our brand.”

    The appointment was made following a three-way agency pitch. Pizza Hut was particularly drawn to BLKJ’s good grasp of the category and the Pizza Hut brand. The decision to partner with BLKJ was made after a stringent evaluation process which involves key marketing and senior stakeholders.

    “We are very excited to be working with Pizza Hut. Firstly it’s a great brand with the potential for creating ground-breaking work. Pizza Hut’s positioning of ‘Your Slice of Simple’ is a great place to start from. Secondly, from the word go the chemistry between the two parties was great. Both of us want to make Pizza Hut more successful than it’s ever been before,” says Rowena Bhagchadani, CEO and Co-Founder, BLKJ.

    The appointment will be further enhanced with the launch of Pizza Hut’s new brand campaign in March 2019. With the addition of BLKJ, Pizza Hut will continue to rekindle the simple and delicious pizza experience, further emphasising an alternative to “foodie complexity”. The partnership with BLKJ will elevate Pizza Hut brand among millennials in Singapore and brings captivating ideas to life.

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  • Popeyes Philippines to launch with seven new locations

    Popeyes Philippines to launch with seven new locations

    Popeyes Philippines has revealed the location of its first seven stores.

    Kuya J’s Restaurant Group confirmed it was bringing the popular New Orleans brand to the Philippines in August, prompting widespread interest from landlords.

    The brand – best known for its fried chicken menu – has confirmed seven locations where they will be opening: Arcovia in Pasig, Eastwood and Vertis North in Quezon City, Alabang Town Center in Muntinlupa, SM San Lazaro and SM Manila in Manila, and Kroma Tower in Makati.

    “The Philippines is a large and growing market and we are looking forward to servicing the high-quality food that Popeyes offers to the country’s more than 100 million people,” said Kuya J chairman Lowell L. Yu.

    The Popeyes brand has operated since 1972, serving “authentic New Orleans-style fast food”.

  • Little Caesars Pizza Philippines ready to launch

    Little Caesars Pizza Philippines ready to launch

    Little Caesars Pizza Philippines will launch with its first restaurant next month. The move continues the expansion of the brand’s international footprint with new restaurants in Southeast Asia. The first restaurant to open under the new franchise relationship with local operator Palmtree PH Foods Corp will be located at the Metrosquare Building in Manila.

    Senior VP of International for Little Caesars Pizza Paula Vissing said he believes the Philippines is a perfect fit for the company’s international expansion due to its strong affinity for both pizza and value.

    Palmtree owner James Kodrowski, who manages a group of companies that operate in the region, said: “Little Caesars Pizza is exactly what this market needs … We believe that the Hot-N-Ready concept will have undeniable market appeal, as well as our commitment to excellent guest service, and superior value. It is our ambition to make Little Caesars the new favorite pizza of the Philippines.”

    Little Caesars is the third largest pizza chain in the world, currently operating in 23 countries and territories. It will also open its first location in Singapore in January.

  • 7-Eleven Taiwan to sell freshly-baked Domino’s Pizza

    7-Eleven Taiwan to sell freshly-baked Domino’s Pizza

    Taiwan 7-Eleven operator President Chain Store Corp is trialling a dual-branded store with Domino’s Pizza in Taipei’s Xinyi District. In doing so, the Taiwanese retail company has created the first convenience store in the country to offer fresh-cooked pizza with groceries and if successful, it will pave the way for a roll-out in selected stores.

    With Taiwan’s convenience-store market penetration the second highest in the world, sitting between South Korea and Japan, operators are seeking ways to achieve growth by means other than opening new stores.

    The trial store will allow customers to watch the pizza-making process. Pizzas will be priced from US$2.90 to $6.80, depending on serving size.

    President Chain Store is targeting busy working people in what is one of the capital city’s more upmarket neighbourhoods. The company hopes pizza will boost sales of complementary items such as beverages and other meal items.

    President Chain Store’s rival Taiwan familyMart has already partnered with companies to offer financial, catering and laundry services and health foods in its stores.

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