Domino’s warns of longer restrictions as coronavirus fast-tracks ‘internet of food’

Domino’s Pizza chief executive Don Meij says the restrictions on mobility and social distancing could be in place for 18 months.

Domino’s Pizza is a believer in the ‘internet of food’

Domino’s Pizza chief executive Don Meij says the restrictions on mobility and social distancing could be in place for 18 months, with the nation’s biggest pizza chain hoping for the best but preparing for the worst when it comes to the economies in which it operates snapping back.

Domino’s, which operates in Australia, New Zealand, Japan and parts of Europe, is a strong believer in the “internet of food” as the future of retail and that the coronavirus pandemic has brought forward this reality for food and other retail.

In an operational update to the market that did not include a trading update for its recent sales performance, Mr Meij said carry-out orders were rising as some of its ­regions emerged from lockdowns.

“As we see markets unlocked we are seeing a rise and return of carry-out, but deliveries are remaining strong,’’ Mr Meij said.

Domino’s was forced to shut down in many of its countries, with even takeaways stopped in France and New Zealand, although this was countered by higher online orders.

While Domino’s did financially support some of its franchise owners due to the economic fallout caused by the health crisis, the company did not see any greater need to lend funds to struggling franchisees at this stage.

The chain had decided not to increase pricing, with Mr Meij saying the food retailer had the savings and efficiencies to resist that, and that he believed it would have been “disgusting” to raise prices during the COVID-19 crisis.

Domino’s Australia/New Zealand CEO Nick Knight said “zero-contact delivery” could be with the chain for some time as customers welcomed the focus on health and hygiene.

He said the “new normal” would include the return of sports and group events. Sales in New Zealand were rebuilding as government regulations on openings and mobility were relaxed.

Andre Ten Wolde, chief executive of Domino’s European operations, which takes in Germany, France, Denmark, The Netherlands, Belgium and Luxembourg, said the chain was expecting a “big summer” for its stores as tens of millions of locals who would have travelled for the holidays would now be staying at home.

“We expect a staycation and we think that it is going to be a vastly different summer with more opportunities for us to build sales, and we are doing a lot of marketing things and product things to talk to the customer and still making it a great summer for them,” he said.

He said instead of customers cooking up a barbecue at their camping sites in Spain, they could purchase from the new BBQ range in France and Germany.

The boss of its Japanese operations, Josh Kilimnik, said Domino’s would launch a campaign to capture more of the fast-growing single households market.