Domino’s delivers bigger capex slice to digital

Domino’s Pizza will more than triple its digital capex over the second half of the 2022 financial year, from $6.8 million in the first half to $21 million.

The expanded funding for digital initiatives came as the company announced (PDF) that its global sales grew 11 percent to just over $2 billion.

Of that, $1.6 billion were online sales, up 11.5 percent.

Digital sales already account for 78 percent of total sales, highlighting the need to keep platforms up to date.

Total capex for Domino’s is up from $36.4 million in the previous half to $66.1 million.

Group CEO and managing director Don Meij highlighted the impact Covid-19 has had on changing the food delivery business model.

“Prior to the pandemic, Domino’s made clear our vision for the future of the quick service restaurant industry is delivered food, ordered online.

“Covid-19 brought forward this future; the ‘Age of Delivery’ for our industry has begun.”
Projects under the digital capex heading include a new native ordering app, backed by a “next generation” online ordering system, a new GPS driver tracker system, and an enhanced voucher tool system.

The company’s investor presentation (PDF) noted that both a new website and the ordering app are slated to launch in the fourth quarter of the 2022 financial year.

Domino’s claims the app has tested at 27 percent faster than the current app, leading to higher customer conversion.