Domino's opens 16,000th restaurant amid competition from Pizza Hut, Papa John's
Domino’s Pizza opened its 16,000th restaurant in Cheektowaga, New York, this week as the leading pizza chain turns to rapid expansion to stave off competition from rivals such as Pizza Hut and Papa John’s.
The milestone comes as the Michigan-based company looks to open more than 2,000 new U.S.-based restaurants over the next decade to boost sales and increase the efficiency of its delivery fleet. Company executives have argued that more stores will also help it to attract and retain delivery drivers in a tight labor environment.
"This is an incredible milestone for Domino's, and I am beyond excited it is happening in Cheektowaga," said Ritch Allison, Domino's president and CEO. "We've grown our total global store count by nearly 4,800 stores in the past five years, and we couldn't be more thrilled to commemorate our 16,000th store in the world, right here in New York."
Domino’s shares have slumped in recent quarters as same-store sales growth falls short of Wall Street’s expectations. However, the chain still ranks as the world’s largest in terms of global retail sales, buoyed by a strong digital platform.
The company expects to invest $115 million to $120 million to build out its supply chain alongside the new store openings.
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Rival Pizza Hut, which has more than 18,000 restaurants worldwide, has focused on revamping its own digital sales efforts to keep pace with Domino’s The chain expected to spend $130 million on digital investments in 2018.