Domino’s franchisee boosted as Russia and Turkey show appetite for pizza
Domino's franchisee DP Eurasia has been boosted by a growing appetite for pizza in Russia and Turkey despite “challenging” economic conditions.
The exclusive Domino's Pizza franchisee in Russia, Turkey, Georgia and Azerbaijan said revenue for the first half of the year grew 32.2 per cent to 380m Turkish lira.
Its online sales of pizza in Russia grew 107 per cent – with revenue from its Russian operations jumping 68.2 per cent to 152m Turkish lira – after expanding into a number of new cities.
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The company said it had regularly increased prices to impact higher inflation as the Turkish lira struggled, but that did not deter people from ordering with online pizza sales also growing 47 per cent in Turkey.
Chief executive, Aslan Saranga, said: “With respect to the macroeconomic headwinds that we are experiencing in Turkey, we are offsetting the impact of higher inflation by increasing our prices more frequently without any discernible negative impact on volumes.”
He said historically the business had always been able to sell pizza even in challenging economic conditions.
The company added 79 stores to its portfolio, taking the total number to 672.
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Most of those additions were in Russia and DP Eurasia revealed plans to expand further into the country.
Saranga said: “In Russia we are continuing with our regional push with planned expansions into new cities during the second half of the year after adding Rostov, Voronezh, Kazan and Nizhny Novgorod among other cities in the first half.”
It will also launch a new website in the country early next year.
The company has also refinanced its Russian debt into roubles at a fixed interest rate.