Operations

Domino's Pizza China rides 4D strategy to continued growth in underserved markets

Photo: Robert - stock.adobe.com

October 14, 2024

Domino's Pizza China (DPC Dash), the exclusive master franchisee for Domino's Pizza in mainland China, Hong Kong and Macau, reported continued strong growth in the third quarter of 2024, capitalizing on opportunities in the under-saturated Chinese pizza market.

The company credits its success to its "4D strategy" focused on development, pizza at value, delivery and digital initiatives. This strategy has allowed DPC Dash to expand its reach and serve high-quality, value-priced pizzas to a growing customer base.

As of Sept. 30, 2024, DPC Dash operated 978 stores across 33 cities, a significant increase thanks to its "Go Deeper, Go Broader" store network strategy. With 210 new stores opened year-to-date, the company is already nearing its full-year target for 2024 and expects to reach 1,000 stores by the fourth quarter. Expansion plans include opening 300 to 350 new stores annually in both 2025 and 2026.

Performance remains strong across the board. Existing stores show continued growth momentum, while new stores are delivering promising results. DPC Dash holds 28 of the top 30 positions for first-month sales among Domino's network exceeding 20,900 stores globally. This accomplishment marks the 29th consecutive quarter of positive same-store sales growth since the current management took over in 2017.

Sustainability is a key focus for DPC Dash alongside growth. The company emphasizes community building and brand recognition through digital initiatives. Their online channels actively engage customers, leading to a significant surge in loyalty program members, reaching 21.7 million as of Sept. 30, 2024. DPC Dash also continuously refines its loyalty program to offer personalized rewards, boosting customer acquisition and retention.

Innovation remains a cornerstone of the Domino's Pizza brand, and DPC Dash actively introduces new menu items. During the Paris Olympics, they launched French-inspired pizzas and desserts, while August saw the introduction of the "Volcano Crust," filled with cheese and Oreo crumbs. These new offerings have proven popular alongside established favorites.

Value is another key driver for DPC Dash. The company offers regular promotions like "Crazy Tuesday & Wednesday" and "Mega Week" on its online ordering channels, providing customers with added savings.

The company's strong performance is attributed to the effectiveness of its 4D strategy and a flexible business model. DPC Dash remains committed to its expansion plans, operational improvements, and delivering long-term value to all stakeholders. They aim for sustainable, profitable growth in the vast Chinese pizza market.