Domino’s Pizza China (DPC Dash) has reported a robust performance for the first quarter as it continues to grow its customer base and expand its operations. DPC Dash holds the master franchise rights for Domino’s in Mainland China, Hong Kong, and Macau.
By the end of March, DPC Dash had increased its total number of stores to 1,462 in 72 cities, marking a net increase of 147 stores and an extension into 12 new cities compared to the end of the previous year. The number of new stores, stores under construction, and stores signed account for 65% of the company’s annual target of 350 new stores. The company’s primary growth engine has become non-tier 1 cities, while tier 1 cities continue to contribute to a high-quality revenue base.
The company’s loyalty program saw considerable growth, with membership numbers rising to 38.8 million by the end of the quarter, up from 27.2 million during the same period the previous year.
DPC Dash now holds all of the top 50 positions for first 30-day sales among Domino’s more than 22,100 globally located stores. In terms of the number of stores, the Chinese mainland market remains the third largest international market for the chain.
DPC Dash continues to follow a “go broader, go deeper” expansion strategy to increase its market share. This involves penetrating further into existing cities and expanding into new areas.
Product innovation remains a key focus for the company, with the introduction of globally inspired flavors such as the limited-edition Yak Beef Matsutake Ham Fortune Pizza released for the Year of the Horse New Year celebration. The company also revived the “Mega Week” promotion and extended the “Crazy Tuesday & Wednesday” offer to boost customer footfall.
The company’s strong execution, appealing store economics, and operational efficiency continue to drive robust performance in a highly competitive landscape, creating sustainable, long-term value for shareholders, according to the management.
What is the expansion strategy of DPC Dash in China?
The company follows a ‘go broader, go deeper’ strategy, which involves penetrating further into existing cities and expanding into new markets.
How many new stores did DPC Dash open in the first quarter?
In the first quarter, DPC Dash opened 147 new stores, extending its reach to 72 cities in total.
What product innovations has DPC Dash introduced recently?
The company introduced globally inspired flavors such as the limited-edition Yak Beef Matsutake Ham Fortune Pizza for the Year of the Horse New Year. It also brought back the “Mega Week” promotion and extended the “Crazy Tuesday & Wednesday” offer to increase customer footfall.
