Singapore, January 20, 2010 DOMINO’S Pizza is making a comeback here after a 10-year absence, becoming the latest kid on the block to join the bandwagon of American food-and-beverage brands returning here after failed first attempts. They see more opportunities, with Singapore drawing more tourists and foreign workers, and locals dining out more often and eating more Western food, analysts said. They might well be here to stay this time, due to changes in consumer demand and improvements in the operations of the franchises, the analysts added. Last month, fast-food restaurant Wendy’s and casual American restaurant T.G.I. Friday’s reopened in Lau Pa Sat and The Heeren respectively, while Chili’s was launched in Tanglin Mall last June. The chains were here for a few years in the 1980s and 1990s, but wound up due to poor business. Domino’s Pizza, which came to Singapore in 1992, had five stores under the management of franchisee Conner Pizza (Singapore) before folding in 2000. It has returned this time with a new franchise holder, Domino’s Pizza Singapore, a sister company of Domino’s Pizza Malaysia, which has been running Domino’s Pizza outlets in Malaysia since 1997. The number of outlets in Malaysia has grown to more than 40 over the years. Its two outlets here are located in Chun Tin Road and Tanjong Katong Road, and they opened last October and last month, respectively. A third is set to open by next month. It hopes to open nine outlets by year-end, to offer its 30-minute pizza-delivery islandwide, said its chief operating officer, Mr Ba U Shan-Ting. Weak management and consumer demand had caused the demise of Western-food franchises in the 1990s, said Associate Professor Lau Geok Theng of the National University of Singapore Business School. Franchisers were not experienced enough in operating foreign outlets, and provided minimal resources to aid franchisees, he explained. Marketing of Western food was lacking, and franchisees did not manage their money well, with some expanding too quickly, he said. Mr Steven Pizziol, Domino’s Pizza International’s vice- president or the Asia-Pacific region, said that the company had terminated he earlier franchise as Conner Pizza was not able “to properly manage, support, fund and grow the business”. From 1997 to 2001, it had closed about 50 stores in Hong Kong, Thailand and Indonesia for the same reasons, he aid. Plans to re-enter the market here have been on the cards for a year. “Singapore has one of the highest gross domestic products in the world, and it’s a very important market for us to be in. It’s a real foodie market...so we have to be here,” he said. “It’s a much bigger pizza market here than it was 10 years ago. We have a much better partner. We as a brand have more experience...as to how to support (our franchisee).” Ms Sarah Lim, senior lecturer of retail management at Singapore polytechnic, attributed the revival of these American brands to timing, changes in customer preference and lifestyle, and changes in the F&B landscape here. Another reason for being “absolutely confident”: the introduction of an online order system, said Mr Pizziol. Should customers not receive their pizzas within 30 minutes, they will get a voucher for a regular pizza worth $22.80, for their next purchase. Pizza Hut, a prominent pizza chain here, does not offer such a guarantee. Its marketing director, Ms Juliana Lim, said: “We do not have time guarantee for delivery at this point, as we are concerned that it will add a lot of pressure on our riders to meet such a commitment. Their safety is important to us.” But it does guarantee that its pizzas arrive hot. Otherwise, customers get a voucher worth $16.50 for their next order.
