Lockdown drives delivery boom for Domino's Pizza

A Domino's Pizza delivery cyclist rides in central London, as the UK continues in lockdown to help curb the spread of the coronavirus. Issue date: Monday April 20, 2020.
A Domino's Pizza delivery cyclist rides in central London, as the UK continues in lockdown to help curb the spread of the coronavirus. Photo: PA

Hungry Brits stuck at home due to lockdown placed bigger Domino’s Pizza (DOM.L) delivery orders, the takeaway business said on Tuesday.

Domino’s said the value of delivery orders rose by 22% between April and June. Across the first six months of the year, sales rose 5.5% in the UK and Ireland, showing lockdown drove a significant uplift in business.

Domino’s said the value of orders rose as people splashed out on more sides and desserts.

The pizza chain was forced to suspend pizza collection during the pandemic and the rise in delivery didn’t offset the loss of collection business. Total sales declined by 11% during lockdown.

The number of orders also fell even as the value rose. 32.6 million orders were placed in the first six months of 2020, down 4.7% on the same period last year.

“We view it as a privilege to have been able to stay open throughout the period,” new chief executive Dominic Paul said in a statement.

“I have been hugely impressed by the hard work, dedication and agility of our colleagues and our franchisee partners to keep Domino's delivering, and I would like to say a big thank you to the entire team.”

Despite the rise in sales, underlying pre-tax profit fell 4.6% to £47.6m ($62.1m). Paul blamed “inevitable and, in certain areas considerable, incremental costs” associated with running the business during the pandemic. Domino’s moved to contact free delivery and stopped collection orders during lockdown to ensure customer and staff safety.

Paul said recent trading had been “encouraging”, boosted by the return of the Premier League, UK staycations and a VAT cut for hot food.

But he warned it was “too early to conclude on how consumer behaviour will evolve” and said there were “considerable uncertainties”.

Shares in Domino’s fell 3% in early trade in London.