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Domino's Pizza Enterprises (DPE) celebrates a significant milestone in Japan, opening its 1,000th store, underlining the Japanese market's pivotal role in DPE's global expansion.
Making Inroads in the Land of the Rising Sun
The Japanese market ranks as the third largest Domino's market worldwide, trailing only behind India and the UK.
Domino's first made its foray into the Japanese market in 1985, establishing a small but growing presence. However, it was not until 2013 that DPE acquired a majority stake, demonstrating their commitment to expanding their operations in Japan. The Australian-based company acquired the remaining 25 percent just four years later, solidifying its foothold in this unique market.
Reflecting on the majority investment made a decade ago, DE Group CEO and Managing Director Don Mei shared insights into the challenges faced in the Japanese market, as per Inside Retail. He emphasized that, unlike other markets, pizza was viewed as a premium product for special occasions rather than a part of everyday sustenance. According to Japan Post English, this posed a unique opportunity for Domino's to reshape the pizza purchasing behavior in Japan.
Expanding Operations through Strategic Franchising
At the time of DPE's acquisition, Domino's operated in only 17 out of Japan's 47 prefectures, with a mere 43 out of 259 franchised stores. Recognizing the potential for growth, Mei and his team leveraged the skills and experience of local operators while providing the means necessary for expansion. Today, over half (626) of the stores are owned and operated by local franchisees.
Marking the achievement of this significant milestone, an official ribbon-cutting ceremony took place to commemorate the opening of Domino's 100th store at Koto Furuishiba in Tokyo. CEO Don Mei, APAC CEO Josh Kilimnik, Domino's Pizza Japan CEO Martin Steenks, and founder Ernest M. Higa graced the event with their presence.
Spurring Innovation, Operational Excellence
Mei appreciated the Japan team, recognizing their continued inspiration and remarkable achievements. Whether it's driving operational excellence or introducing exciting menu innovations, Domino's Japan team has established itself as a true global leader in the industry.
Kilimnik, a former CEO and president of Domino's Pizza Japan, highlighted the key drivers behind the company's success. A revitalized menu featuring a blend of premium pizzas and value offers and an advanced online ordering system were instrumental in propelling Domino's Japan forward. Significant investments in their dedicated workforce have also further elevated the brand's reputation.
CEO Martin Steenks outlined the company's ambitious goal to become the top pizza company across all 47 prefectures in Japan. With the largest store count in 30 prefectures already, Domino's is poised to continue its upward trajectory. Steenks confidently stated, "We are very confident we will be celebrating 2,000 stores in Japan within the next decade."
Photo: Vishu Joo/Unsplash
