Dominos to triple spending on marketing

The company, which operates a franchise-based model with 688 stores in the UK and Ireland, has enjoyed rapid growth in recent years but like-for-like sales slowed to 2.4 per cent higher in the first half of 2011, compared with 4.2 per cent in the first quarter and 13.7 per cent this time last year.

It has stepped up its promotional activity with the launch of television commercials using the “It’s what we do” slogan, while it is to sponsor ITV’s Red and Black, a new game show, hosted by Ant and De,c in which players will be able to win £1m on the spin of a wheel.

Profits in the six months to 26 June rose by 12 per cent to £19m as the company relied on its long-term contracts with suppliers to offset the impact of rising foodstuff prices.

Cheaper boxes also helped to offset higher prices for dough and cheese.

Total sales rose by nine per cent to £258.4m, helped by a number of store openings and the growth of its internet operation, which lifted revenues by 51 per cent to £85m and now account for over 40 per cent of its business.

New products such as the stuffed crust pizza also did well and it now accounts for 15 per cent of total sales.

Over the past 12 months, the group opened 60 new stores and says it is on track to open another 60 by the end of the 2011 with the creation of 1,800 new jobs.

Chief executive Chris Moore said yesterday: “While the first half of the year has been tough, we are delighted that we are still showing good growth in the UK.

“Our marketing spend to the year end will be three times the amount for the second half of 2010 and, combined with some great new products and a heavyweight brand campaign in the coming months, we are very excited about the future,” he added.