Domino’s Pizza Enterprises recorded a strong 14.5% sales growth in the half year ended December 30, to $328.6m, producing a bottom line increase of 2.8%, to $9.4m.

Don Meij, Domino’s chief executive officer, attributed the strong performance in an otherwise difficult economic climate to increased online business, prompting the company to upgrade its Australian and New Zealand websites.

Online orders now account for 19% of orders in Australia - up 290% on the previous corresponding half year. The site was the most visited site in the food and beverage - restaurant and catering category in November and December, according to Hitwise.

‘Online ordering continues to impress us. That’s why we’ve launched new websites in Australia and New Zealand.’ Meij said today. ‘We will also see an increase in online sales across all countries going forward, following the launch of France’s stores.’

The increase in sales chiefly reflected the increase in outlets - up by 15 to 756, including 11 stores in Europe and four in Australia and New Zealand, two of which were stadium stores.

Same store sales in the period were slower than the previous year at 4.2% - down from 7.6%. However, same store sales in January were up 5.2% on the previous year.

‘Despite the economic downturn, customers are still appearing to be supportive of the fast food category,’ Meij said.

The franchisor of the Domino’s Pizza brand operates 513 outlets in Australia and New Zealand and 243 in France, Belgium and The Netherlands.

Company revenue was down 2.1%, to $113.4m, reflecting the transfer of company-owned stores into the Domino’s franchise system.

At present, the corporate store sell-down is moving slower than expected and 20 stores are still left to sell.

The company expects to maintain growth momentum in 2009 generated by an on-track increase of 40 stores, growing online business and menu expansion into pasta.

Further reading: Domino’s Pizza enters pasta wars

Domino’s Pizza rivals Pizza Hut with a new range individual pasta dishes in puff pastry bowls

Domino’s Pizzas Enterprises today launched a rival range of individual pasta dishes following Pizza Hut’s release of baked pasta meals for four.

The Domino’s range of three varieties of pasta meals which come in novel puff pastry bowls - Chicken Carbonara, Pasta Primavera and Beef Napolitana - are part of 15 new products the company launched today in a bid to capture a bigger market.

Don Meij, Domino’s chief executive officer, said the company had never introduced so many new products at the same time before. ‘This is just the beginning of what you are going to see from Domino’s,’ he said.

Another of the new products, Choc Lava Cake, individual hot chocolate cakes with melted chocolate inside, was released in the lead up to Valentine’s Day and sold 60,000 in its first week on the market.

Meij told a media briefing today the company expected to be the biggest pasta delivery company in Australia by the end of the first week of selling its pasta range.

The other products launched include three new varieties of Big Taste range of pizzas - Meatza Soprano, Vege Grande and Chicken Capri - made with ingredients such as grape tomatoes, baby spinach leaves, chicken breast meat and 100% mozzarella cheese.

Three new dips have also been released - Aioli, Ranch Dip and Chilli - to have with the Domino’s Chicken Kickers and pizza crusts.

Domino’s is also launching a range of individual drinks, including Coca-Cola in bullet cans, Vitamin water and 600ml bottles of sparling Franklins mineral water.

Meij said Domino’s expected to grow its business in the economic downturn by tapping into new markets such as the pasta market, which was bigger than the pizza market, capture a bigger share of the lunchtime market with its individual pasta and Choc Lave Cake products, offered from $7.95 and $2.95, respectively and attract customers who were moving from the restaurant and cafe market to takeaway.

“In the current economy, we are seeing people moving from restaurants and cafes into our sector and when they are coming there, they have a real high expectation of quality because of where they’ve been dining, so we got to make sure we’re rising to meet that expectation but at the same time we meet the most important reason they’re coming, and that’s value,” he said.

Domino’s claims number one place in Australia’s takeaway pizza distribution with 510 franchised stores across Australia and New
Zealand, selling more than 50 million pizzas a year.