Domino's tech innovation feeds AU$64m profit

Domino's Pizza has reported a record profit for the 2015 financial year, crediting the success to its digital presence, notably in the wearables space, and its GPS Driver Tracker function.
Written by Asha Barbaschow, Contributor

Australian-listed Domino's Pizza has delivered a record net profit after tax of AU$64.4 million, attributing a big slice of the 40 percent year-on-year increase to its innovative use of technology.

The pizza giant recorded Australia and New Zealand earnings before interest, tax, depreciation and amortisation (EBITDA) of AU$71.6 million, up 23 percent year-on-year, and total revenue in the ANZ marketplace of AU$216.8 million.

"Domino's has seen record profits and explosive growth over the past five years which is largely attributed to product innovation and world-first digital initiatives," the company told shareholders.

The company's Live Pizza Tracker -- which shares real-time data with customers on the progress of their order -- made the move to the Android and iOS watches. Domino's chief digital officer Michael Gillespie said of the wearable's app launch that wherever a Domino's customer wants to be in a digital space, they are there with them.

"It's about that 'wow' moment when they can see that their pizza is ready in store on their watch, without having to find their phone," he said. "Right now, well over 50 percent of our sales are on digital, some stores are very high [in digital sales], and over half of our digital sales are on mobile."

According to Domino's, the biggest change to the global brand was the rollout of the GPS Driver Tracker in July this year. In partnership with Navman Wireless, the pizza-maker launched the GPS Driver Tracker, a platform designed to allow delivery drivers to be tracked via GPS when en route to making a delivery.

"We've definitely become a technology company, but pizza is still the heart of our business. The reason why we've become so passionate about technology is it's enabling a better pizza experience," Group CEO and managing director Don Meij said at the time.

Domino's also rolled out '4 Click Ordering', a quick order concept whereby the app remembers your previous order to allow a user to select a reoccurring selection and order with four clicks; and 'Payment Tokenisation' which extends on quick ordering by saving a user's preferred payment option.

Looking ahead to FY16, Meij said that connecting with consumers in the digital age is the biggest opportunity, and investing in new digital initiatives is imperative to maintaining sales momentum and growth.

"In ANZ we have in excess of 40 exciting digital projects in the pipeline. This includes many that will make the ordering process even faster and easier for our customers," Meij said.

"This will take us beyond ordering via phones, watches, laptops, cars, and iPads and will form the foundation of many new ways to interact with Domino's."

In FY15, Domino's boosted its shopfront total in Australia and New Zealand to 670 after adding 59 stores this financial year, 27 in FY14, and 26 in FY13. Europe saw the addition of 51 stores, and in Japan, the pizza-giant opened 64 stores across the country.

Domino's also said that it has completed the "Entice" refurbishment of 86 percent of its stores in ANZ and undertook its biggest ANZ recruitment drive.

"We have continued the positive sales momentum right across the group and in ANZ we delivered another year of strong earnings growth driven by double digit same store sales and record store openings," the CEO said.

Since its Japanese expansion two years ago, Domino's growth has resulted in revenue of AU$314.30 million, up a tasty 30.4 percent from the same time last year. Total EBITDA in the country for FY15 is AU$37.9, up 38 percent from last year's AU$27.4 million.

The CEO said that the company will continue to focus its efforts on relocating stores to pick-up friendly locations in Japan, and hopes to expand into new markets across the country.

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