Domino's target slice of Swiss market

Takeaway chain Domino’s Pizza satisfied its hunger for European expansion today with a deal targeting tech-savvy consumers in Switzerland.

Takeaway chain Domino’s Pizza satisfied its hunger for European expansion today with a deal targeting tech-savvy consumers in Switzerland.

The group, which has a network of 748 stores in the UK, Ireland and Germany, plans to open at least 25 stores in the country over the next five years after buying the Domino’s master franchise and 12 existing stores.

With internet use in Switzerland higher than in the UK, Domino’s believes there is an opportunity to drive online growth in the same way as its domestic market as consumers order through phone apps and Facebook pages.

It said: “Currently, brand recognition of Domino’s in Switzerland is very low and the existing stores are not heavily marketed.

“The company believes it can take the brand to the next level through an improvement in product quality, innovative marketing and its focus on a great delivery service.”

Domino is paying an initial five million Swiss francs (€4.1m) for the exclusive right to operate and franchise stores in Switzerland, Liechtenstein and Luxembourg, as well as an option on stores in Austria.

It will pay a further two million Swiss francs (€1.6m) depending on the performance of the 12 stores over a two year period.

The group holds the master franchise to own, operate and franchise Domino’s Pizza outlets in the UK, Ireland and Germany, having opened its first UK store in Luton in 1985. It acquired the German franchise in April 2011.

Chief executive Lance Batchelor said he saw good potential in Switzerland, given the affluent consumer market.

He added: “The encouraging progress we have seen in our first 16 months in Germany has convinced us this opportunity is one not to be missed.”

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