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Domino’s and its franchisees to invest $24 million in store upgrades

Sarah Stowe

A $24 million store refurbishment program designed to increase customer appeal and boost sales has been announced by franchise chain Domino’s Pizza Enterprises for its Australian and New Zealand outlets.

Forty stores will begin the upgrade immediately, 40 have already undergone the transformation, and there will be other outlets joining the program throughout the year. Both company owned and franchisee stores will undergo the refurbishment with costs from $50,000 to $150,000, depending on location.

The plan is for all outlets to be sporting the new look by 2014 said Domino’s chief development and franchising officer, Pat McMichael.

“This is a huge capital expenditure project to be funded by DPE and franchisees but one we know will help deliver greater return for our franchisees and make our stores more visually appealing to customers,” he said.

McMichael told Franchising stores seven years or older are due for refurbishment but a refit can also be undertaken on renewal of a franchise term.

The new store design launched last year creates a welcoming ambience with soft tones and wood panelling. In some stores with a minimum 10 metre frontage there will be a seating area for customers and the pizzas will be made at the front of the store allowing customers to become involved in the process.

McMichael said “We want to bring more theatre, and more of an experience, to our customers. We want our customers to see our ingredients and it’s working, customers can ask for a little more of an ingredient as their pizza is being made. We’ve invested a lot in our ingredients,” he said, “and we want to make the most of it.”

Where possible, McMichael explained, new outlets will take on the re-configured store layout. “But it’s not right for every neighbourhood,” he added.

Domino’s plans 35 new store openings across Australia by the end of 2011; there are 538 outlets currently in Australia and New Zealand.