One of the world’s best-loved Pizza companies, Domino’s Pizza, has opted to tuck into a slice of its franchise businesses in Sweden, Iceland and Norway too, with the business looking to enjoy a bigger portion of the current buoyant takeaway market in Europe.
It’s not just Magento eCommerce development that is thriving in the UK and Europe, with the brand revealing they have forked out £24m for a “notable” stake in the Scandinavian franchises. And the Pizza firm has stated plans to reach a point when they are a majority owner, after years of conscious growth across the continent.
The London-listed Domino’s bought out the stakes from Birgir Bieltvedt, the man responsible for establishing Domino’s Iceland 23 years ago, in 1993 and will remain as chairman.
This latest development gives Domino’s, which has already established itself in Germany and Switzerland, as well as the significant launch in Italy, the origin of pizza, a 49% stake in the Icelandic business and 45% of both the Norwegian and Swedish franchises.
Domino’s is the biggest pizza delivery business in Britain at present and boasted a 16% sales growth on home soil in 2015, as rising demand for takeaways assisted in delivering the UK and Ireland revenues of £866m in 2015.
Domino’s Iceland, which has 19 shops, posted earnings of £3m before interest, taxes, amortisation and depreciation last year and grew sales by 20pc. The Norwegian business has yet to turn a profit; it has 10 shops after launching in 2014.
The company cited that Sweden provided “substantial potential” and that it had set its sights on opening the first Domino’s store before the end of 2016.
Mr Bieltvedt said of the move: “These exciting markets hold great potential,” said Domino’s boss David Wild. “Our skills in eCommerce, marketing and supply chain will complement the excellent local know-how of our partners in Iceland, Norway and Sweden.”