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UK's Domino's Pizza Enters into new 5-Y Framework with Franchise Partners

Dec 9 (Reuters) - UK's Domino's Pizza Group said on Monday it has reached a new five-year framework with its franchise partners as the company targets store expansion and further investments.

The new Profitability and Growth Framework will start on Jan. 3, following the conclusion of the existing pact, the company said in a statement.

The framework, which got "unanimous support" from the partners, aligns the company with franchisees through shared investment in marketing and technology, and provides for incentives to push for new store openings, it said.

Domino's Pizza Group said it expects to make several additional investments including the extension of payment of new store incentives to five years from the current three-year period.

The company is targeting 2 billion pounds of systems sales by 2028 from more than 1,600 stores.

Last month, the company said it was expecting to open 50 to 60 new stores in 2024 fiscal, and was on track to open its 1,400th store in the next year.

The London-listed pizza chain, which operates under the umbrella of U.S.-based Domino's Pizza in the UK and Ireland, said total orders grew 5.3% and like-for-like sales rose 2.7% in the first nine weeks of the fourth quarter.

Reporting by Aby Jose Koilparambil in Bengaluru; Editing by Mrigank Dhaniwala

Source: Reuters


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