Big rise in cheese prices hits Domino's

01 November 2007 by
Big rise in cheese prices hits Domino's

Unprecedented increases in the cost of food ingredients have delivered Domino's Pizza an additional charge of £450,000 for mozzarella, the chain said today.

Domino's UK and Ireland said with the price of the raw materials used in its pizzas soaring and the unforeseen collapse of its main cheese supplier in March, a new supply contract had lead to a £1,060 per tonne increase in the price of mozzarella.

The pizza delivery giant, which has 480 stores in the UK and Ireland, said it had chosen to absorb most of the increase to give its franchisees time to decide whether to change their menu pricing to reflect the increased cost.

In a trading update for the 13 weeks to 30 September, the company also revealed a senior management shake-up.

At the end of the calendar year, chairman Colin Halpern will retire from his executive role to become non-executive vice-chairman.

He will be replaced by chief executive Stephen Hemsley, who becomes executive chairman. Hemsley will be succeeded by deputy chief executive Chris Moore.

Like-for-like sales at the company's 404 mature stores were 14.2% up on last year in the period. System sales increased 22.5% to £70.7m (2006: £57.8m).

Domino's said sales through its websites in the UK and Ireland increased year-on-year to 60.4% to £7.7m.

Domino's defends itself over staff exploitation allegations >>

Domino's Pizza enjoys excellent start thanks to bad weather >>

Domino's names UK and Ireland's Fastest Pizza Maker 2006 >>

In-store software slashes Domino's delivery times >>

Domino's Pizza increases online security at outlets >>

By Chris Druce

E-mail your comments to Chris Druce here.

The Caterer Blog](http://www.caterersearch.com/blogs/catering-news-blog/) Catch up with more news and gossip on the Caterer Blog here
[Newswire For the latest hospitality news, sign up for our e-mail news alerts.
The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.

close

Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking