Domino’s Pizza delivers profit surge thanks to appetite for mobile apps

 
Cutting it: Domino's Pizza first-half profits were hotter by 28% (Picture: Channel 4)
Simon Neville28 July 2015

More Domino’s customers ordered their pizzas online through mobile phone apps rather than on a computer for the first time in the company’s history.

The revelation comes as the chief executive of the UK’s biggest pizza takeaways chain said the extra cash in people’s pockets is being spent in his stores on what he called “affordable treats”, helping the shares jump 4% to 836p.

David Wild said: “I don’t think there’s any doubt. I bracket us in the affordable treat category where people have that little bit more money. We just have to make it as easy as possible for people to order with us.”

Sales jumped 14% to £426.7 million for the six months to June 28, with pre-tax profits up 28% to £32 million.

Wild added that there are trials for one click orders for customers who know exactly what they want, and said London was a key growth area for the company.

“London is a particular priority for us and we’re looking to develop more stores in London. It is such vibrant space where we have the biggest opportunity for growth.”

The boss also waved away fears shareholders might have that the introduction of the Living Wage could hit profits.

The hourly rates for over 25-year-olds hits £9 an hour by 2020. He said all UK stores were franchises so the cost would be borne by them.

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