Domino’s Pizza has unveiled a post-lockdown plan to grow the business including 200 new stores and a widespread drive-thru service to bolster collection sales.

The company, which has enjoyed a strong performance during the COVID-19 pandemic thanks to online deliveries, said it was moving to “reset” its fractious relationship with franchisees through an “attractive” offer including a new set of long-term goals.

It said it hoped the “very successful” existing 70 franchisees would, along with others, take advantage of its plans for 200 more stores following a bitter row going back years over strategy that has placed its expansion at risk.

Just 24 hours after it confirmed the sale of its Swedish arm to concentrate on the core UK and Ireland business, Domino’s said it hoped to have 450 sites offering in-car collections, where staff will deliver pizza to the customer’s vehicle, in place by the end of June when lockdown restrictions are due to end in England.

It said it was targeting annual sales of £1.6bn to £1.9bn over the medium term as it reported a leap of 11% to £1.35bn for the year to 27 December.

Pre-tax profits came in at £56.4m – a rise of 200%.

Shares rose more than 10% on the update, which included details of a share buy-back and dividend worth £88m.

The company said it had spent £9m over the year to ensure its franchisees could operate safely during the pandemic, with 94.3% of delivery sales made online.

It said its digital capabilities, including a new app due to roll out within months, was a crucial part of its strategy.

Chief executive Dominic Paul told investors: “We have maintained an open dialogue with our franchisees throughout the development of this plan and, while we do not have an agreement yet, we have made an attractive offer to them which we believe will deliver powerful benefits to both them and the group.

“As the economy begins to reopen, we have invested in our capabilities to enable us to capitalise on the substantial opportunities ahead.

“I am confident that we can achieve our vision of being the UK and Ireland’s favourite food delivery and collection brand, and deliver great results for our colleagues, our customers, our shareholders and our franchisees.”

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