A MILTON Keynes based pizza delivery franchise plans to respond to some of the toughest economic conditions it has known by spending huge sums on marketing.
Domino’s Pizza, based in Lasborough Road, Kingston, increased sales by nine per cent to £258.4 million in the half-year to June 26 and profit before tax went up 14.8 per cent to £20.1million in the same period.
Like-for-like sales in 607 stores have risen by 2.4 per cent in what bosses have described as a ‘very tough operating climate.
But instead of reining in marketing spend, chief executive Chris Moore said: “Our marketing spend to the year end will be three times the amount for the second half of 2010 and, combined with some great new products and a heavyweight brand campaign in the coming months, we are very excited about the future.”
Chairman Stephen Hemsley said: “The first half of 2011 has been one of the toughest starts to the year that we have seen for quite some time.
“A combination of the economic climate, hot weather and incredible like-for-like comparatives have given us a real challenge.
“However our franchisees, supported by a strong head office team, have shown their mettle and I’m delighted to be reporting another period of good growth.”
Head office staff are due to move into the company’s new site, in West Ashland, Milton Keynes, later this year. It is expected to give the company extra capacity to grow.
Domino’s Pizza’s new commissary, on the same site, is reported to be fully operational and running well.
The state of the art facility provides pizza bases to hundreds of the company’s franchisees.
The multinational company has about 688 stores in the UK, the Republic of Ireland and, following a buy-out, in Germany.
Mr Moore added: “In a tougher economic climate, it would be easy for our franchisees to reduce their commitment to local store marketing.
“But the old adage of when the going gets tough, the tough get going is certainly true at Domino’s and our franchisees have seized this opportunity to boost their local marketing spend and gain local market share.”
The company’s also using Facebook and Twitter to promote offers, as well as sponsorship of an ITV show called Red Or Black.
Domino’s is also focusing on service and quality in new brand campaigns on TV, backed up in press and digital media.