Domino's looks to London with £24 million deal

Domino’s Pizza group, also known as DPG, has announced that it has signed a deal worth £24 million to partner up with it’s largest London Franchise business. Currently, Domino’s has 25 outlets in London and points out that the deal will provide “advantage of the significant growth opportunity in the London area”.

DPG says that the deal will mean that it will take a 75% stake in a group of one franchisee’s 25 outlets in the capital. The move is said to help bolster the group's effort to expand in the UK with another 600 stores planned, moving their total to 1600. However, experts have voiced concerns over expansion plans in London citing high property costs and a lack of appropriate sites.

Recently, the group announced their half-year results which highlighted a slowdown in sales caused by a shift in strategy which has lead to the franchise chain to move their outlets closer together. The long term goal of this strategy is to boost overall sales and improve customer service.

The Editorial Team, Point Franchise ©