Online pizza sales push Domino's profits up

A rise of more than 40% in online orders has pushed up profits at pizza delivery firm Domino’s.

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A rise of more than 40% in online orders has pushed up profits at pizza delivery firm Domino’s.

Year-end results from Domino’s Pizza UK and Ireland show a 20% increase in sales in 2006, bringing in revenues of £240m. Pre-tax profits were up 28% to £14m, the figures for the year ending 31 December 2006 show.

But the strongest growth has been in e-commerce, where sales shot up 44%, from £14m in 2005 to £20m last year.

Chief executive Stephen Hemsley said: “E-commerce continues to be our fastest growing channel to matrket.”

He added that e-commerce accounted for almost 13% percent of Domino’s pizza deliveries in the UK – around one in eight pizzas. `

“Improvements to our website capacity have made it faster and easier for our customers to order and they now benmefit from local deals which have previously not been available on the web,” he said.

Domino’s introduced online ordering in Ireland this month and Hemsley said inituialo results were “encouraging and highhlight that this market has the potential to grow our onlibne sales still further”.

Domino’s chair Colin Halpern credited “real-time technology” with reducing pizza production speeds and increasing sales. The company’s real-time dispaly system shows the average speed of making and baking pizzas for each store and for Domino’s nationally, encouraging staff to keep production times down.


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