TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Domino's Pizza eyes aggressive expansion
Michigan-based pizza-delivery franchisor Dominoâs Pizza is planning to open stores in an âaggressive phaseâ as it aims to make a bigger footprint in the growing Indonesian market
Change Size
M
ichigan-based pizza-delivery franchisor Domino's Pizza is planning to open stores in an 'aggressive phase' as it aims to make a bigger footprint in the growing Indonesian market.
Speaking at the launch of a new outlet at Tangerang City Mall, Banten, Domino's Pizza international president Richard Allison said he aimed to open pizza restaurants in many more cities in Indonesia.
The new outlet, which adopts an open kitchen concept, brings the number of Domino's outlets in the country to 58.
'We plan to continue opening stores in an aggressive phase, to bring more hot pizzas to customers,' Allison said. Domino's Indonesia CEO Merrill Pereyra said he targeted no fewer than 15 more outlets next year and two new outlets in the Greater Jakarta area this year.
'We are also aiming to be present in second-tier cities for expansion,' he said, adding that Domino's currently had a footprint in Jakarta, Bandung and Bali.
Pereyra said that Domino's would expand further not only in the country's big cities but in all regions, including eastern areas, particularly with the presence of Singapore-based investment firm Everstone Capital Asia Pte. Ltd.
Earlier this year, retail giant PT Mitra Adiperkasa (MAPI) ' which was previously Domino's sole franchisee in the country ' sold its 51-percent stake in the pizza maker to Everstone as the restaurant outlets, along with its Burger King outlets, did not contribute much to its revenue.
'We look at this [outlet expansion] over a five-year period. We think the potential in Indonesia is huge. For example, Domino's Pizza's franchisee outlets in South Korea currently hit 400 stores and 250 stores only in the city of Seoul,' Everstone managing partner Atul Kapur said.
With Indonesia's 250 million people, Domino's Pizza would need a huge and precise expansion, he said, adding that Everston would also seek other investment opportunities in the consumer-goods sector.
Pereyra said that not only did Domino's plan to boost its physical presence in the country, it also aimed to improve its customers' experience in ordering pizzas through mobile phones by soon launching a Domino's Pizza application across operating systems.
'We will spend around half-a-million dollars to develop our digital services [in Indonesia],' he said.
Domino's mobile application was currently available on the iOS platform in Indonesia, but would also be available on Android by January next year, Pereyra said.
'We expect that digital orders would account for 30 percent of total Domino's orders in the country [once applications on both iOS and Android are available],' he said.
Globally, digital orders made up over 40 percent of Domino's total orders, with the Asia-Pacific region becoming the fastest growing market for the company, Allison said.
Over the last two years, the Asia-Pacific region recorded double-digit growth in same-store sales, surpassing those of US and international markets with same-store sales growth of between 6 and 10 percent, according to Allison.
'['¦] Our long-term expectation is that our same-store sales grow 3 to 6 percent per year outside the US ['¦] We have been growing in neighborhoods on a global basis by about 6 percent,' he told The Jakarta Post.
Domino's, which was first founded in the US in 1960, earned over US$2 billion in global sales in the third quarter of this year, with $0.9 billion coming from the US market and the remaining $1.1 billion coming from the international market. The firm pocketed around $8 billion in total sales last year.
