LONDON (SHARECAST) - Domino’s Pizza has established a launch pad for rapid international expansion with the acquisition of 75% of the master franchisee for the pizza delivery group in Germany.
The other 25% of the franchisee, Intergrowth Enterprises, will be retained by Briskas, an affiliate of the German hotel operator Grand City Hotels Group.
“The company believes the German market offers an exceptional opportunity for the Domino's brand,” said Domino’s, which was awarded the German master franchise in April 2010 and currently operates two stores in Berlin.
It added: “While the total market size is yet to be determined, the company aims to open at least 400 stores over the next 10 years and believes that the market could ultimately accommodate more than double that figure.”
Under the terms of the transaction, Domino’s has bought the 75% interest in the franchisee for 2.2m shares of 1.5625p each.
“This is a great opportunity for us to further increase the scale of our operation and develop our business in one of the largest economies in the world,” said Domino’s chief executive Chris Moore.
“The German pizza market represents a particularly fertile ground for Domino's with a limited number of relatively small players and no established international pizza delivery brand.”