Delivering Results - Ba U Shan-Ting, Domino's Pizza

Ba U Shan-Ting, the COO of Dommal Food Services, tells us what's cooking at Domino's Pizza. The most popular product line is still the Aloha Chicken because it's a safe choice especially for families with children. And unlike Americans, Malaysians do not usually mix their toppings. Sales in 2009 for Domino's pizza business in Malaysia was RM75 million, exceeding the target of RM50 million. This was in part due to the strategy of offering value meals in the form of Indredible Meals for RM10 per person - proven to be effective in an economic slowdown. Domino's business really took off from 2005 onwards when the present shareholders acquired the assets. Ting says the market needed time to appreciate Domino's concept and a certain scale had to be achieved. Ting also clarified that Dommal Food Services reported a loss in 2008 due to intercompany charges, and the group as a whole is profitable.

Ting is expecting sales to grow by 20% in 2010 and this would be achieved through an addition of 10 new outlets. Expected number of outlets is 52 by end 2010. On outlets with dine-in customers, he says it's not a conscious strategy to do so and is dependent on the space that is made available. Domino's wants to continue to focus on delivery services.

Domino's will also be expanding into Singapore - plans to have 10 outlets by end 2010. During the Asian crisis, the previous franchisee (different owner) had pulled out of the market and Ting believes that they will succeed this time because they have the experience.

Dommal Food Services is the master franchisee of the Domino's pizza business and is owned by Mikenwill Sdn Bhd. Dato' George Ting, former director of KFC Holdings, is a major shareholder of Mikenwill. While Shan-Ting is Dato' George's son-in-law, he explains that qualified business managers are placed to run the business professionally.