According to DW-WORLD.de, Domino's Pizza plans to first open franchises in Berlin before expanding across the rest of the country. It will be the US delivery giant's second attempt to establish itself in Germany. The company had operated a small string of franchises in the country but retreated more than a decade ago.
Company spokeswoman Jenny Fouracre said in an e-mail that its former German franchise partner had the financial resources but lacked the "operational and country-specific experience" to be successful in Germany. With Grand City Property, she said, Domino's has found a partner who has "not only the financial part of the equation but also very strong operational expertise and a solid history of operating in Germany."
Michael Lawton, executive vice president of Domino's Pizza International, referred to Germany, with nearly 41 million households, as a market that offers a "great opportunity" for pizza delivery.
Franchise analysts agree. Felix Peckert, a Bonn-based franchising consultant, expects between three and five large pizza delivery companies with about 3,000 to 5,000 franchise partners to dominate the home delivery market within the next 15 years. The big competitors, he said, will force many of the smaller pizza delivery companies out of business and many of the smaller pizzerias to drop their delivery service and focus instead on their dining and takeout services.
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