#SAFranchiseFriday featuring Domino's Pizza

BACKGROUND
Ranked amongst the world’s top restaurant brands, Domino’s Pizza is the world’s leading pizza delivery chain both in store number and unit sales. In fact, Domino's pioneered the pizza delivery business and sells more than one million pizzas across the globe each day. Domino's currently boasts almost 13,000 stores in over 80 vibrant markets around the world.

Domino’s Pizza in South Africa is managed by the Taste Holdings Group and forms part of the Taste Food Division along with Zebro’s, The Fish & Chip Co, Maxi’s and Starbucks.

THE CONCEPT 
Domino’s Pizza introduced authentic American-style pepperoni to the local market but has also retained the tastiest local pizzas on the menu to accommodate local pizza connoisseurs. Since launching the brand in November 2014, 90 Domino’s Pizza stores have been opened in South Africa and the number continues to grow.

The Domino's Pizza economic model is built on strong cash-on-cash returns. Their industry-leading technology platform enables online ordering, direct email marketing, cost controls and effective store management. Domino’s also offers consumers a ‘FREE delivery in 30 minutes’ guarantee — a service others will find hard to match.

Globally, Domino’s Pizza is considered a leader in innovation and the local Domino’s Pizza operation follows suit. Customers are able to order their favourite pizzas through Domino’s Pizza’s online ordering platform featuring the ingenious Pizza Tracker®.

Pizza Tracker® allows customers to track every stage of their order in real time, from the time the order is received to the minute it leaves the store. Online ordering and Pizza Tracker® are available on the web as well as on the Domino’s Pizza app which is downloadable for both Android and iOS devices.

FRANCHISOR SUPPORT
In supporting its franchisees, Domino’s Pizza draws on the extensive experience of its knowledgeable local and international management teams. Outlets are visited regularly by a head office consultant who provides assistance and support in areas that require attention. Regional operations managers and trainers provide ongoing product and on-site training as well as local marketing support.

Franchisees and managers complete an intensive 5-week induction course covering the business and operations of a Domino’s outlet. The training curriculum covers stock management, basic business skills, finance, store administration, human resources, point-of-sale training, and marketing.

The Domino's value-added supply system ensures quality and consistency while leveraging their purchasing power.

FRANCHISEE PROFILE
Operating in the QSR industry is challenging and it takes a special kind of personality to do so successfully. A successful outlet is driven by a hands-on owner-operator who is willing to commit to the rigorous demands of the industry.

HISTORY
Founder: Tom Monaghan
Year founded: 1960
Area of origin: United States of America
CEO: Patrick Doyle

NETWORK
1st SA franchise opened: 2015
Number of SA outlets: 90

FRANCHISE AGREEMENT
Management services fee: 7% of turnover
Marketing fee 5%: of turnover
Agreement term: 10 Years
Renewal term: 5 Years

FINANCIALS
* Amounts quoted are VAT exclusive
Establishment cost: R1,97 million
Franchise joining fee: R250 000
Working capital required: R200 000
Total average set-up cost: R2,42 million
Average monthly turnover: Available on request
Achievable gross margins: Available on request

WANT TO KNOW MORE?
Contact Dewald van Deventer on +27 11 608 1999 or dewald@tasteholdings.co.za
www.dominospizza.co.za