Business

Domino's Pizza announce new £24m London franchise deal

Domino's Pizza has inked a partnership with its London franchise business
Gareth McKeown

Domino's Pizza has inked a partnership with its London franchise business that will see it chomp down on a 75 per cent stake in a new company.

The group said it will pay £24 million for the stake in the firm, which will consist of 25 existing Domino's stores in the capital.

"The creation of the partnership will enable Domino's Pizza Group to take advantage of the significant growth opportunity in the London area," the firm said.

The deal is expected to close in September.

Last month Domino's reported first-half sales of £546.5 million which, while a 10.5 per cent increase on last year, represented a slowdown on the 17 per cent growth seen in the same period in 2016.

Like-for-like sales grew 2.4 per cent, a marked decline on last year's 13 per cent growth as the firm flagged a "softer consumer environment and a slowdown in the overall delivery market".

Pre-tax profit rose 9 per cent from £44.6 million.

The group has also been investing in technology and has recently signed an agreement with Amazon Echo that will enable voice ordering for customers as it looks to boost sales.

It has also introduced GPS tracking for its pizzas.

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