Domino's turns up heat in pizza sector

Domino's Pizza has ramped up competition in New Zealand's already tight pizza market by confirming it has signed a deal to buy Pizza Haven.

Domino's chief executive Don Meij said the deal would make it the second largest pizza chain in the country.

It would have a total of 51 stores in both the North and South Islands.

Mr Meij said yesterday that Domino's had 16 outlets in the North Island and Pizza Haven had 35 spread throughout both islands.

Most Pizza Haven franchisees would be able to convert their stores to the Domino's brand, but a change was not compulsory.

"Pizza Haven and Domino's Pizza both recognise that the competitive market in New Zealand needs to be rationalised and that greater buying power will offer better returns for Pizza Haven franchisees," he said.

In Australia, pizzerias that converted to the Domino's brand experienced better sales and turnover.

Pizza Haven's joint managing director, Bill Christou, said the sale was the best possible outcome for franchise holders.

However, the move comes shortly after rival Hell Pizza unveiled plans for what it calls "world domination".

Founder Callum Davies said last month that Hell had grown from four shops to 30 in just two years, with 29 of the outlets franchised.

This year, Hell plans to open its first South Island store in Christchurch and is also looking to set up shop in Australia.

"There will definitely be a couple of test stores in Australia next year," Mr Davies said.

- NZPA