Domino's China Turns Profit with 41.4% Revenue Surge, Shifts from Delivery Focus

Domino's Pizza, a global pizza chain, has started to turn a profit in China after shifting its focus away from a strict delivery-centric model. The company, which has long been known for its "30 minutes or it's free" delivery promise, has begun to relax this requirement in certain new markets. This strategic move has allowed Domino's to concentrate on expanding its physical store presence, which has proven to be a more sustainable and profitable approach in the Chinese market.

By the end of the first quarter, Domino's China had opened 97 new stores, reaching a total of 1,031 stores. This rapid expansion is part of a broader strategy to increase its market share and profitability. The company's decision to ease the delivery pressure comes as it has seen a surge in new store openings. By not prioritizing delivery in these new markets, Domino's has been able to allocate more resources towards improving the quality of its products and enhancing the in-store dining experience. This shift has not only helped Domino's to better compete with local pizza chains but has also allowed it to tap into a growing segment of consumers who prefer dine-in options.

Domino's China's new strategy has been well-received by consumers, who have shown a preference for the convenience and quality of the in-store experience. The company's focus on store expansion has also helped it to reach new customers in areas where delivery services were previously limited. This approach has not only increased Domino's market share but has also helped it to build a stronger brand presence in China.

The company's decision to relax its delivery requirements has also allowed it to better manage its operational costs. By not having to maintain a large delivery fleet, Domino's has been able to reduce its overhead expenses and invest more in store improvements and marketing efforts. This has helped the company to achieve a more balanced and sustainable business model, which is crucial for long-term success in the competitive Chinese market.

Domino's China's shift away from a delivery-centric model is a testament to the company's adaptability and willingness to evolve with the changing market dynamics. By focusing on store expansion and improving the in-store dining experience, Domino's has been able to turn a profit in China, a market that has long been challenging for foreign food chains. This strategic move not only highlights Domino's commitment to the Chinese market but also sets a precedent for other international brands looking to succeed in this region.

In 2024, Domino's China reported a 41.4% year-on-year increase in revenue, reaching 4.314 billion yuan, and a net profit of 550 million yuan, marking a turnaround from previous years of losses. This financial performance underscores the success of the company's new strategy, which has allowed it to achieve profitability while continuing to expand its store network. The company's focus on store expansion and improving the in-store dining experience has not only increased its market share but has also helped it to build a stronger brand presence in China.

Domino's China's shift away from a delivery-centric model is a testament to the company's adaptability and willingness to evolve with the changing market dynamics. By focusing on store expansion and improving the in-store dining experience, Domino's has been able to turn a profit in China, a market that has long been challenging for foreign food chains. This strategic move not only highlights Domino's commitment to the Chinese market but also sets a precedent for other international brands looking to succeed in this region.