And speaking of Papa John’s, Allison was asked if troubles faced by the company stemming from its battle with founder John Schnatter, helped Domino’s grab more share? The short answer was: not really.
“We're in a very fragmented category and if we have a competitor donating share, it doesn't simply fall in our pocket, we've got to earn it,” Allison said, without naming Papa John’s specifically. “And sometimes, share that's donated doesn't necessarily all fall into the pizza category as well and that specific competitor has a relatively small share within the category. So the impact of this on the overall landscape isn't necessarily as heavy as some might assume.”
“When we take a look at the category overall, we're really more focused on our own competitive strategy than we are on kind of the short-term ups and downs with any specific competitor,” Allison continued. “And we think if we can continue to stay focused on bringing value to our customers and also on delivering terrific unit-level economics to our franchisees, we think we can continue to be successful and can continue to take share from competitors, small and large, in the pizza market.”
Domino’s has a 10-year goal of hitting 8,000 U.S. stores. Globally, it believes there’s potential for an additional 5,300 restaurants in the top 15 markets alone.
Here’s how that growth opportunity unfolds with current stores next to Domino’s projected potential, as shared by the company:
- U.K./Ireland: 1,116 current/1,675 potential
- Australia/New Zealand: 819/1,200
- Japan: 520/850
- Canada: 483/700
- South Korea: 443/500
- France: 379/1,000
- Netherlands: 255/400
- Spain: 255/350
- German: 213/1,000
- India: 1,144/1,800
- Mexico: 718/1,025
- Turkey: 521/900
- Saudi Arabia: 243/450
- Malaysia: 218/450
- Brazil: 217/500
So if you add that up with the U.S. projection, Domino’s forecasts potential for 15,049 additional restaurants, amounting to a 30,000-plus-location restaurant company.
That’s a pretty staggering figure. Domino’s has put a 6–8 percent unit growth outlook over a three- to five-year window.
Also, not on that list? China and Russia. Allison said Domino’s is optimistic about the forward growth in some of those emerging markets as well.
In an effort to support retail sales growth, Allison said Domino’s opened a new state-of-the-art supply chain center in Edison, New Jersey, this past quarter—its first U.S. supply chain center to open in more than a decade.
The brand’s focus on digital (more than 60 percent of U.S. sales come via digital channels, a rise from zero percent in roughly a decade) and small footprints of delivery hubs make the growth a very realistic target.