Domino's In Europe, Nz, Australia See Boost From Economic Downturn

(Wednesday, February 18, 2009) - New Zealand was the star ingredient in Domino's Pizza's Australasian operation as the fast food chain says it has to step up its game to capture customers who have upsized expectations on downsizing budgets.

Domino's doesn't break down its figures into New Zealand and Australian components, which could be used by its competitors, said chief executive and managing director and MD Don Meij.

However, he said New Zealand performed better than Australia and was stronger than the 2.2 percent same store growth. "New Zealand is going very well for us. It's a strong market and a very important market to this part of the world for us," he said.

Domino's has 78 outlets in New Zealand, (out of 513 in Australasia) and planned to grow that to 85 in next 18 months, but was not saying where yet. "Despite the economic downturn, customers are still appearing to be supportive of the fast food category," Mr Meij said.

A new menu was launched in Australia on Monday, including pastas, more pizzas and a dessert and Mr Meij told NZPA a new menu would also be seen here in the next few months.

He promised a fresh pasta product in a puff pastry bowl, as opposed to frozen product that heated up into a "stewed pasta" that fast food companies had offered in the past.

Mr Meij said people had been eating in cafes and restaurants and had developed higher expectations they might have had five to 10 years ago.

"So when they do migrate to us we have make sure we are stepping up, so you are going to see us improve the quality and freshness of a lot of our products.

"Rather than these people pass through takeaways and go straight back to supermarkets we want them to stick with takeaways and particularly Domino's. "Most things are moving in our favour," he said.

Costs were coming down for things such as cheese, flour, interest rates and petrol.

"The only thing we have to be humble and cautious about is that it's a changing world out there and no-one can afford to be too cocky."

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