Domino’s China hit a record high in revenue growth in the first half of 2022 with CNY 909 million (USD 126 million), up 18.6 percent over CNY 767 million (USD 106.6 million) in the first half of 2021.
Aileen Wang, CEO of Domino’s China, attributed the brand’s milestone to “development acceleration, digital leadership, deliver excellent and delicious pizza at value”.
As part of the company’s accelerated development, Domino’s China has increased the number of stores throughout China. The number of Domino’s China locations jumped from 188 to 468 between 2019 and 2021. There are 508 Domino’s China locations in the country as of June 2022.
In addition to store expansion, an increased demand on takeout has contributed greatly to the company’s growing revenue. During the pandemic, Domino’s carried out its “30-minute delivery promise” service, which became a big selling point for the company. In 2021, delivery orders alone generated more than 73 percent of revenue.
The company’s revenue has steadily increased over the years, but net losses have been as high as CNY 471 million (USD 65 million). For the past three consecutive years, the pizza giant has been struggling to pay hefty headquarter fees and packaging costs for its takeout services.
The pizza chain giant is betting on economies of scale for its China strategy. In first and second-tier cities such as Guangzhou and Shenzhen, Domino’s plans to open 120 stores in 2022 and 180 stores in 2023.