Domino's Pizza UK & IRL PLC
09 January 2003
For Immediate Release 9 January 2003
Domino's Pizza UK & IRL plc
Pizza Delivery Leader Announces Sales Increase As New Report Predicts
Substantial Future Industry Growth
Domino's Pizza UK & IRL plc announces like-for-like sales increases of 6.3% for
the five weeks to 29 December 2002. Preliminary results for the year will be
announced in February 2003.
The results support findings published today in a new market report from
independent commercial think-tank, The Future Foundation. Included within the
report is an estimate that the UK's home delivery pizza market will more than
double by 2010 to approximately £800 million.
Stephen Hemsley, Chief Executive of Domino's Pizza, commented, 'We were pleased
with our Christmas trading performance which continued the growth of the earlier
part of the year. We look forward with confidence to reporting our full year end
results next month, and to continued growth in the coming year.
'It is very positive to hear that the Future Foundation report endorses our
belief that the home delivery pizza has a very bright future. As the UK's
leading pizza delivery company we are confident in our ability to continue
capitalising on the predicted substantial growth of the market.'
The Future Foundation Report was commissioned by Domino's Pizza and considers
the social, economic, demographic and technological factors likely to impact on
the sector for the remainder of this decade. Highlights include:
Current Market Situation
• The total home delivered food market (all foods) is estimated to have
been worth £1.058 billion in 2002, a 56% increase in value since 1997
• Home delivery now makes up 70% of the total take-away and home
delivered food sector, up from 62% in 1997
• Pizza is the single largest category in the home delivered food
market, accounting for 36% of value
Key Growth Drivers
• Time pressure - the research shows that, on average, adults in the UK
eat out and/or eat delivered/take-away meals around 80 times a year,
reflecting the increasing demands on time. The experience of eating out or
ordering in can represent a way of creating a 'time oasis'.
• Rising disposable income - real household disposable income is expected to
increase by 11.8% over the next five years resulting in greater
personal opportunities to spend on home delivered food.
• Changing demographics - in the long term, the number of older people will
grow. According to the research, the industry can capitalise on this change
by cementing brand loyalty amongst a generation of people who have grown up
as pizza consumers and will be an increasingly affluent section of the
population.
Furthermore, the changing family formation is likely to impact positively on the
industry with an increasing number of couples without children and single person
households with more disposable income likely to spend on eating out and
ordering in. A decline in the traditional family structure, coupled with
increasingly individualised tastes, will result in even fewer 'formal family
meals' in the home.
• Leisure participation - the next decade will see an increasing choice
and variety of leisure pastimes. Eating out or having food delivered is
just one of these competing areas. During the next five years the research
suggests that spending on home-delivered food and take-aways will continue
increasing at constant prices by 2.5% a year on average.
• Technology - Over the next five years an increasing section of the
population will have access to interactive technologies, up from 70% today
to 90%, and the number of broadband users will increase. These people will
become more experienced and confident about e-commerce and about buying
food online. The research suggests that as ordering online becomes easier
and online advertising more accessible, those home food deliverers taking
advantage of this area are likely to do particularly well.
Stephen Hemsley concluded, 'It's a very exciting time for pizza home delivery.
This report sets in context our future expansion plans and the way in which
Domino's aims to continue meeting the needs of our customers with changing
lifestyles.'
Sarah Graham, The Future Foundation, commented, 'The home delivered pizza sector
in the UK is already performing extremely well and the rest of the decade will
see tremendous growth. Changes affecting the whole social and economic make-up
of the country will drive this success and those companies who take advantage of
these trends will be the household names of 2010.'
Contacts :
For further information and a full copy of the Future Foundation report, please
contact: Ruth Pagett or Duncan Mackenzie-Reid at Lexis PR on 07803 127582 or
07776 257170, or Bernadette Eddisford at Domino's Pizza on 07909 928016.
For financial PR enquiries, please contact Isabel Petre or Catherine Miles at
Buchanan Communications on 020 7466 5000.
Notes to Editors:
• Graphs/visual support to accompany this release are available on request.
• Domino's Pizza UK & IRL plc is quoted on the Alternative Investment Market
of the London Stock Exchange (symbol: DOM). Its subsidiary, Domino's Pizza
Group Limited, is the UK's leading pizza delivery company and holds the
exclusive master franchise to own, operate and franchise Domino's Pizza
stores in the UK and Ireland.
• Founded in 1960, Domino's Pizza, the recognised world leader in pizza
delivery, operates a network of 7,138 company owned and franchised stores
in the United States and more than 60 international markets. Domino's is
committed to leading the industry in product quality and operational
excellence.
This information is provided by RNS
The company news service from the London Stock Exchange
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