The Chancellor’s VAT cut has helped the pizza giant serve up soaring sales at Brits were lockdown and staycationed.
In the 13 weeks to 27 September Domino’s posted an 18.3% hike in the UK for like-for-like sales, as franchises sales were boosted due to the VAT cut on hot takeaway food from 20% to 5% in July.
The lockdown saw soaring demand for takeaway pizza’s, but the pressure on sales during September was hit by rivals who reopened.
Dominic Paul, chief executive of Domino’s, said: “We welcome the UK Government’s reduction to VAT in mid-July which helped franchisees mitigate costs and gave them the opportunity to pass savings on to customers.”
Wayne Brown, an analyst at Liberum, said: “What remains concerning is another 7.8% decline in order count in a period when Just Eat reported third-quarter orders up 43%.
“This is clearly unsustainable.”
Paul added,, “At the heart of our future plans is realignment with our franchisee partners and we are having detailed discussions to agree a sustainable way forward, although we continue to expect that these discussions will take some time.”