Pizza chain innovating to combat lower growth

Domino’s Pizza has inked an agreement with Amazon Echo that will enable voice ordering for customers as it looks to boost slowing sales growth.

The delivery chain will launch what it called an “industry first” with voice ordering through the smart speaker device, as well as introducing GPS tracking for its pizzas.

Chief executive David Wild said: “Following a successful trial, we’ll be rolling out GPS, which will enable customers to track their delivery and help franchisees with labour management.”

The firm said the introduction of GPS tracking will provide “significant labour savings” for the franchisee, while also enhancing the overall online consumer experience.

However, the group reported firsthalf sales of £546.5 million which, while a 10.5% increase on last year, represented a slowdown on the 17% growth seen in the same period last year.

Like-for-like sales grew 2.4%, a marked decline on last year’s 13% growth as the firm flagged a “softer consumer environment and a slowdown in the overall delivery market”. Pre-tax profit rose 9% from £44.6m. The company will shortly open its 1,000th British outlet.

Mr Wild added: “The first half of 2017 has been another period of good progress for Domino’s Pizza Group, despite a more uncertain UK economic environment.

“The core business delivered strong year-on-year system sales, continuing to take pizza market share, with good like-for-like performance.

“We’ve had a record six months in the UK, opening 40 new stores and have consequently raised our expectations from 80 to 90 this year.”

Wayne Brown, analyst at Liberum, said older stores were performing less well than newer outlets.

He added: “The half-year results are relatively as we had expected, with a declining like-for-like sales profile impacting underlying margins.”

Domino’s is now GPS tracking pizza deliveries.