The Domino’s Pizza franchise talks

What do you consider to be your product offering's unique selling point?

Dominos Pizza Australia New Zealand Ltd is the largest Domino’s Pizza franchise system outside the USA.

Currently boasting an impressive 438 stores, with many more on the way, Domino’s Pizza is Australia’s largest pizza company - both by store number and network sales.

Domino’s Pizza and it’s franchisees employ more than 11,000 team members across Australia and New Zealand, making more than 40 million pizzas each year.

Domino’s Pizza not only prides itself on being the pizza delivery experts, but also strives to be delivery experts in shareholder value, store expansion, innovative new products and increased brand recognition.

What evidence exists that the fast food, restaurant franchise sector has room for more franchisees?

According to Euromonitor, the Australian fast food market will grow from $9.03 billion in 2004 to an estimated $10.28 billion by 2008.

The Australian pizza market has experienced considerable growth in recent years and this is expected to continue due to increasing demand for fast, quality and affordable meals.

Domino’s Pizza’s sales levels continue to experience significant growth, confirming there is plenty of room for growth in the industry as a whole.

Domino’s Pizza has been the market leader for a long period of time, and our business model constantly evolves to meet ever-changing consumer requirements.

What are the start-up costs and ongoing fees associated with being one of your franchisees?

The Domino’s Pizza new franchise start up cost can vary due to a number of factors. These include the size of the store, the presence of existing amenities (including air conditioning and three phase power) and the amount of landlord works able to be negotiated.

On average, new store costs start at $250,000 plus a franchise fee of $50,000. An on-going royalty is payable at 7 per cent, and a marketing contribution of up to 6 per cent, varying from market to market, is also payable.

On average, how much net profit can a typical franchisee earn per year?

Domino’s Pizza franchisee earnings vary between each franchisee and are influenced by a number of factors. This information is provided in the disclosure document, which will be readily provided to any applicants who meet the initial selection criteria.

What is your franchise's success/failure rate?

This information is not available to the general public. As a publicly listed company, further information can be obtained on our website.

What do you see as the biggest trend happening in your market segment?

As dual career households become increasingly common in Australia and time becomes an even rarer commodity in our society, there has been a trend towards home delivered, fresh, quality meals at an affordable price.

Over the past 12 months, Domino’s Pizza has developed internet and mobile phone ordering to make pizza more accessible to Domino’s Pizza’s busy “always-on-the-go” 18 to 35 year-old market.