Domino’s Pizza Japan Tops 35 Years Of Success With The Lot

Domino’s Pizza Japan celebrates 35 years of operations, marking the milestone by passing 700 stores, and today becomes the largest country by store count for Domino’s Pizza Enterprises Ltd.

A series of customer-focused promotions and special menu offerings will start today.

When Domino's began operations as the first delivery pizza chain in Japan on 30 September 1985, there was no Japanese word for pepperoni – since then Domino’s has led the way with its distinctive three-wheel scooters and unique products, including ‘Quatro’ Pizzas, with pepperoni now one of the most popular toppings.

In 2013, Domino’s Pizza Enterprises Ltd (ASX:DMP) purchased a majority stake in the business[1]. Since then it has grown to be the largest pizza chain in the country, with franchising an increasing part of its success.

Group CEO and Managing Director Don Meij said the performance of the business in Japan reflected the efforts of more than 19,000 team members in stores and head office, and 117[2] entrepreneurial franchisees.

“When we brought Japan into our business, many were understandably sceptical about whether local customers would embrace Domino’s in a country where pizza was a ‘special occasion meal’, whether the business could grow, and whether franchisees would be a part of that growth given Domino’s Pizza Japan had only a small number of franchisees,” Mr Meij said.

“I am proud of the team’s efforts that have brought all of these to fruition; customers appreciate our high quality product and exceptional service, we have grown from the third largest chain to the largest (closing in on tripling our store count), and franchised stores are half of our business.”

Domino’s Pizza Japan had 259 stores[3] in 2013 and today, seven years later, operates 704 stores. Domino’s Pizza Enterprises moved to 100% ownership in 2017.

Domino’s Pizza Japan has successfully and rapidly expanded in recent years, growing its store footprint by 30% in the past two years. Five stores were opened last week and, with two stores opened today, Japan overtook Australia (703 stores) as the largest country by store count in DMP.

Deputy Chairman Ross Adler, who was Chairman when the Company’s Board approved its largest acquisition, said the success in Japan had made Domino’s a more resilient business.

“The acquisition of Domino’s Pizza Japan, and subsequent expansion to be the number one pizza chain in the market, is a true Australian success story. Both those who were sceptical and those who were confident in the potential for this business should be delighted with its progress.”

Domino’s Pizza Japan CEO and President Josh Kilimnik said local management were excited about an even greater potential for Domino’s in Japan; providing record numbers of jobs, franchising opportunities, and charitable giving than ever before.

“Our outlook is to more than double our store footprint to 1,500 stores by 2030-32, building on our track record to offer more customers more meal options, while keeping focused on the strengths that delivered our business to its current position; people, product, and service.

“Our team has been recognised this year as fostering the most talented Domino’s store managers in the world, who are leading our teams to deliver high quality meals safely in world-record delivery times.

“The next steps for our business, and our future success, is in very capable hands.”

[1] DMP purchased 75% of Domino’s Pizza Japan from Bain Capital in 2013, and the remaining interest in 2017.

[2] As at June 30, 2020

[3] June 30, 2013: 259 stores (216 corporate and 43 franchised)