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Home Business NewsBusinessBusiness Growth Domino’s Pizza has a sizzling VAT boost as sales surge

Domino’s Pizza has a sizzling VAT boost as sales surge

by LLB Finance Reporter
15th Oct 20 1:22 pm

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.”

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