reporter ｜Fang Wenyu Xie Zhiying
edited ｜Jiang Yuyan
pizza selling Domino China's secondary delivery of the table, impacting IPO.
In 1997, the 37-year-old American brand Domino entered the Chinese market and opened its first Chinese store in Beijing.
20 years later, Dashi shares won the exclusive general franchise qualification of Domino Pisa Mainland China, Hong Kong and Macau. One sign will take ten years, Domino China presses the expansion acceleration button.
Domino China CEO Wang Yi decided to open 500-700 stores in China within 5 years. As of the end of June 2022, the number of stores has been updated to 508, and the 44-year-old female executive has achieved its goal.
It was too early to breathe a sigh of relief.
company is still in a loss state, with a cumulative loss of 1.02 billion yuan in three and a half years from 2019 to the first half of 2022.
expands continuously and urgently needs to turn losses into profits. Now seeking to go public, Domino China is waiting for capital transfusions.
Delivery Expert
Domino, industry insiders send the nickname "Pizza Delivery Expert" because the brand promises "a delivery for 30 minutes, and coupons will be sent overtime."
Coincidentally, Wang Yi, CEO of Domino China, was once a deliveryman for Domino.
Domino China continues its parent company's advantages in delivery services. The prospectus quoted Frost and Sullivan's report that Domino is the only pizza company in China that promises to provide 30-minute service in all sales channels.
"fast speed" has become the company's revenue guarantee.
In 2021, more than 73% of Domino China came from delivery orders, with a corresponding amount of nearly 1.2 billion yuan. From 2019 to the first half of 2022, the company's revenue from delivery orders was no less than 70%, far higher than the industry average of 49%.
To ensure timeliness, the company uses a full-time delivery rider team. By the end of 2021, Domino's riders had 5,375, accounting for 43.83% of the total number of employees.
"Owner" delivery method is more reliable. In 2021, about 90% of delivery orders will be delivered within half an hour, and the average order completion time is 23 minutes.
supply chain technology empowerment is another move for Domino China.
2021 and the first half of 2022, about 95% of the company's delivery, takeout and dine-in orders came from online orders, which was higher than the industry average of 70%. Among them, the revenue from its own online channels accounts for about half.
As early as when most takeaway restaurants answered orders on phone, Domino launched PC and mobile food orders. About half of the company's employees are data experts, engaged in software and data analysis.
After Wang Yi joined Domino, she learned from the "GPS delivery tracking function" of stores in the United States and Australia, and other delivery methods such as drones, drones and robots.
Based on this, in 2019, Domino China independently developed the "integrated service middle platform". Customers can not only track orders that have left the store in real time online, but also "go into the kitchen" to track the entire process status of orders from preparation to baking, and then to riders picking up meals.
Wang Yi joked, "Domestic is actually a technology company, but it happens to be selling pizza."
accelerated expansion
Wang Yi has worked in McKinsey and McDonald's China. In September 2017, 39-year-old Wang Yi stepped down as vice president of McDonald's China franchise business department and became CEO of Domino's China.
Her appearance accelerated Domino's China's expansion. Since 2017, Domino's China stores have tripled. As of the first half of 2022, there were 508 stores.In the prospectus of
, Domino China has set ambitions to "commit to becoming China's leading pizza brand."
The persistence in scale has reached the actual level. Wang Yi admitted that the goal of opening a store in China is to open 500-700 stores within 5 years.
Domino China plans to open 120 and 180 new stores in 2022 and 2023 respectively. This year, as of October 7, Domino China opened 79 new stores.
stores are mostly concentrated in the four major cities of Beijing, Shanghai, Guangzhou and Shenzhen, accounting for 77.6% of the total.
The next step is to enter new first-tier and second-tier cities that have no business yet. In response to this, Wang Yi made a plan in 2018, "The whole of China is a blue ocean, and we will definitely enter second- and third-tier cities."
ambitions are indeed based.
Compared with other East Asian markets, the development level of China's pizza market is relatively low. In 2021, there will be only 10.9 pizza stores per million people in China, and 28.1 and 28.3 respectively in Japan and South Korea.
Frost Sullivan report expects that from 2021 to 2026, the pizza market in China's new first-tier and second-tier cities will reach 13.6% and 14.9% respectively, exceeding the same level in first-tier cities.
is in a rapidly developing market. With efficient delivery services and "Chinese-style" pizza that adapts to local conditions, Domino's China's market share has exceeded doubled from 2017 to 2021.
In the past two years, this potential has won a total of US$130 million in three financings for the company. Among them, the parent company invested US$89.1 million.
trapped in human resources
Domino China's revenue has steadily increased. In 2019, the company's revenue was 836 million yuan, and in 2021, this number increased to 1.611 billion yuan, almost doubled. How much money can you make by selling pizza in
? Domino China's profitability is very stable - last year and the first half of this year, the store operating profit margin remained at 9.2%.
However, most stores open for a short time and the company is in a stage of not spending more than enough money.
2019-2021, Domino China suffered losses for years, with a quota ranging from 181 million to 471 million yuan, and a loss of 900 million yuan in three years.
's prospectus mentioned that "the company will continue to generate net losses in 2022."
In comparison, the takeaway business of the parent brand Dominola is booming. It achieved a net profit of US$510 million in 2021, setting a five-year best performance. The stock price is rising in the wind, standing at its highest point since its listing.
Domino China's losses may be other reasons.
Unlike most pizza brands that actively recruit franchisees, Domino's existing stores in China are all self-operated. With the huge team of full-time delivery riders, the salary is a considerable expense.
By the end of last year, Domino China had 2,991 formal employees, and 9,271 part-time staff including takeaway riders.
From 2019 to 2021, Domino China's employee salary expenses were 340 million yuan, 470 million yuan and 700 million yuan respectively, accounting for the highest proportion of total revenue as much as 43.66%. The company also provides riders with free electric vehicles and other equipment, which are reflected in costs.
In other words, nearly half of the revenue is spent on employees.
On the one hand, it has been working hard for sixty years and cannot be given up easily. On the other hand, it is a new store opening plan that continues to increase. Domino China urgently needs funds to inject funds.
prospectus disclosed that this fundraising will be mainly used to expand the store network and expand the capacity of central kitchen , etc.
Domino China wants to be assigned to the largest pizza in the domestic market. Whether it can knock on the door to listing is crucial.
In the prospectus of, Domino China has set ambitions to "commit to becoming China's leading pizza brand."
The persistence in scale has reached the actual level. Wang Yi admitted that the goal of opening a store in China is to open 500-700 stores within 5 years.
Domino China plans to open 120 and 180 new stores in 2022 and 2023 respectively. This year, as of October 7, Domino China opened 79 new stores.
stores are mostly concentrated in the four major cities of Beijing, Shanghai, Guangzhou and Shenzhen, accounting for 77.6% of the total.
The next step is to enter new first-tier and second-tier cities that have no business yet. In response to this, Wang Yi made a plan in 2018, "The whole of China is a blue ocean, and we will definitely enter second- and third-tier cities."
ambitions are indeed based.
Compared with other East Asian markets, the development level of China's pizza market is relatively low. In 2021, there will be only 10.9 pizza stores per million people in China, and 28.1 and 28.3 respectively in Japan and South Korea.
Frost Sullivan report expects that from 2021 to 2026, the pizza market in China's new first-tier and second-tier cities will reach 13.6% and 14.9% respectively, exceeding the same level in first-tier cities.
is in a rapidly developing market. With efficient delivery services and "Chinese-style" pizza that adapts to local conditions, Domino's China's market share has exceeded doubled from 2017 to 2021.
In the past two years, this potential has won a total of US$130 million in three financings for the company. Among them, the parent company invested US$89.1 million.
trapped in human resources
Domino China's revenue has steadily increased. In 2019, the company's revenue was 836 million yuan, and in 2021, this number increased to 1.611 billion yuan, almost doubled. How much money can you make by selling pizza in
? Domino China's profitability is very stable - last year and the first half of this year, the store operating profit margin remained at 9.2%.
However, most stores open for a short time and the company is in a stage of not spending more than enough money.
2019-2021, Domino China suffered losses for years, with a quota ranging from 181 million to 471 million yuan, and a loss of 900 million yuan in three years.
's prospectus mentioned that "the company will continue to generate net losses in 2022."
In comparison, the takeaway business of the parent brand Dominola is booming. It achieved a net profit of US$510 million in 2021, setting a five-year best performance. The stock price is rising in the wind, standing at its highest point since its listing.
Domino China's losses may be other reasons.
Unlike most pizza brands that actively recruit franchisees, Domino's existing stores in China are all self-operated. With the huge team of full-time delivery riders, the salary is a considerable expense.
By the end of last year, Domino China had 2,991 formal employees, and 9,271 part-time staff including takeaway riders.
From 2019 to 2021, Domino China's employee salary expenses were 340 million yuan, 470 million yuan and 700 million yuan respectively, accounting for the highest proportion of total revenue as much as 43.66%. The company also provides riders with free electric vehicles and other equipment, which are reflected in costs.
In other words, nearly half of the revenue is spent on employees.
On the one hand, it has been working hard for sixty years and cannot be given up easily. On the other hand, it is a new store opening plan that continues to increase. Domino China urgently needs funds to inject funds.
prospectus disclosed that this fundraising will be mainly used to expand the store network and expand the capacity of central kitchen , etc.
Domino China wants to be assigned to the largest pizza in the domestic market. Whether it can knock on the door to listing is crucial.
