Domino’s reports 8.8% like-for-like sales increase in Third Quarter: Domino’s Pizza UK has reported a strong performance, in its Third Quarter, the 13 weeks to 26 September, with system sales of £375.8m, up 9.9% and like-for-like sales excluding splits up 8.8%. Excluding the benefit of a lower rate of VAT, underlying like-for-like system sales grew by 6.4% (H1:+5.5%). The company stated: “We have now passed the anniversary of the reduced VAT rate of 5% which was introduced on 15 July 2020. Total orders continued their positive trend and grew 9.5 % in the period, driven by collection orders rising 40.3%, now at 82% of 2019 levels, lapping a period which was significantly impacted by covid restrictions. Digital momentum continues with our new app now accounting for 42.1% of system sales (+5.9% vs. Q3 FY20. We Opened five new stores in the quarter, with 18 stores opened year to date (from seven different franchisees) and remain on target to open up to 30 stores in FY21 and 200 stores in the medium term.” Chief executive Dominic Paul said: “We have delivered another strong quarter and demonstrated excellent momentum in the business which reflects the hard work and commitment of our franchisees and colleagues. We have built on our strong performance through the pandemic as restrictions have been lifted, with our collections business continuing its recovery and our total order count growing in a profitable and sustainable way. I am pleased with the strategic progress we have made in the period as we continue our journey to deliver a better future through the food people love. Our integrated marketing campaigns have improved our brand strength and awareness levels. We have opened five new stores, seen continued strong sales growth through our new App and completed our planned exit from all directly operated international markets. Our supply chain continues to deliver outstanding results, despite the well-publicised inflationary pressures and challenging labour market, which is testament to the skill and dedication of our teams. While we see these pressures continuing into 2022, our success in managing them to date provides us with confidence that our growth momentum will be sustained. We’re proud to be creating new jobs to support that growth and today are announcing that we are recruiting 8,000 new colleagues across the UK and Ireland. Trading remains in-line with our expectations, we are well placed as we gear up for our peak trading period and believe our strategy is working to create sustainable value for all our stakeholders.” The company added: “As part of our strategy to turbo-charge our collection business, the roll-out of in-car collection continues with 339 stores now offering this service, compared to 300 stores at the end of June. In-car collection brings labour efficiency benefits to our operation and attracts incremental customers to Domino’s.”
Ten of 21 companies being added to updated Propel Turnover & Profits Blue Book turning over in excess of £20m: Ten of the 21 companies being added to the updated Propel Turnover & Profits Blue Book, which is produced in association with Mapal Group, are turning over more than £20m. The next edition of the Blue Book, which will be sent to Premium subscribers on Friday (15 October) shows the 21 companies are turning over £856.6m. The Blue Book will now feature 427 UK pub, restaurant, cafe and hotel operators with a total turnover of £30bn. The Blue Book has begun to reflect the economic damage of the pandemic with 208 companies reporting a profit and 219 reporting losses. The Blue Book, which is updated every month, provides an insight into UK operator turnover and profitability over five years, profit conversion and directors’ earnings. Premium subscribers also receive two other databases – the New Openings Database, produced in association with StarStock, and the Multi-Site Operators Database, produced in association with Virgate, which are also updated each month. Subscribers also receive access to Propel’s library of lockdown videos and Friday Wrap interviews and now also have access to a curated video library of the sector’s finest leaders and entrepreneurs, offering their insights on running outstanding businesses in the sector. Premium subscribers also receive their morning newsletter 11 hours early, at 7pm the evening before our 6am send-out; regular video content and regular exclusive columns from Propel insights editor Mark Wingett. Companies can now have an unlimited number of people receive access to Propel Premium for a year for £895 plus VAT – whether they are an operator or a supplier. The regular single subscription rate of £395 plus VAT for operators and £495 plus VAT for suppliers remains the same. To subscribe, email email@example.com.
Boparan – food is too cheap in the UK: The owner of the UK’s biggest poultry supplier and Boparan Restaurant Group, which operates nine brands, has warned that the cost of chicken is expected to rise by more than 10%, adding that food in Britain is “too cheap”. Ranjit Singh Boparan, who owns 2 Sisters Food Group, called for a “reset” on pricing to reflect the true cost of producing food. “How can it be right that a whole chicken costs less than a pint of beer? You’re looking at a different world where the shopper pays more,” he said. His companies produce about a third of all the poultry products consumed by people in the UK. Chicken is the country’s most popular meat, with consumption far outstripping beef, lamb or pork. Any price rises are likely to have a disproportionate impact on lower income families. Boparan, whose facilities in the UK and Europe process more than ten million birds a week, said Britain was entering a new era, one in which labour shortages and commodity price rises would mean less choice and higher prices. He said rising inflation was “decaying the food sector’s supply chain” and the government could not fix the problem. “The days when you could feed a family of four with a £3 chicken are coming to an end. We need transparent, honest pricing. This is a reset and we need to spell out what this will mean,” he said. “Food is too cheap, there’s no point avoiding the issue. In relative terms, a chicken today is cheaper to buy than it was 20 years ago.” The group’s 600 farms and 16 factories, which employ 18,000 people, are facing soaring energy costs, which Boparan said had risen by between 450% and 550% on last year. He said wages were up 15% as were feed costs for the poultry while other inputs, including diet supplements, wood shavings for litter, disinfectants and veterinary costs were up as much as 20%. Alongside wage increases for HGV drivers, who remain in short supply, fuel costs are now at their highest rate since 2013. “Inflation is decaying the food sector’s supply chain infrastructure and its ability to operate as normal. That’s from farm to your plate,” said Boparan, who is nicknamed the Chicken King because of his position in supplying many major high street retailers. He said he needed to invest in increasing automation to secure the future of his operations, adding that inflation could reach “double digits” in the short term because of the wave of cost increases. “We really have to start thinking differently about what our food priorities are and what they cost,” Boparan said.