Domino's (Pizza) From Cardboard Crust To Technology Company
In the late 2000s, Domino's became known for their cardboard tasting pizza. Led by Patrick Doyle, the CEO, Domino's turned things around starting in 2010.
The first step was to acknowledge that their pizza sucked. They ran ads on TV saying their pizza sucked including Domino’s workers reading out loud customer reviews such as "worst pizza I've ever had," "sauce tastes like ketchup" and "the crust tastes like cardboard." It was a risky move from a marketing standpoint that paid off.
Next, Domino's threw away their 49 year old recipe and revamped the recipe which included that delicious garlic, buttery crust that we all love. They also expanded the menu to include things like the "Specialty Pizza" that consisted of lightly breaded chicken topped with cheese and such toppings as bacon and jalapeno which boosted profits. They also created a deal you couldn’t refuse in 2011 - two medium, two-topping pizzas for $5.99 each.
But I think it was their transformation as a technology company that allowed Domino's to overtake Pizza Hut with a 17% market share of the quick-service pizza business.
*Domino's unveiled a custom delivery vehicle with a heating oven called the DXP. There are only 150 DXP vehicles on the road, but the ads generated buzz and contributed to Domino's 30% control of the pizza delivery market.
*Domino's Twitter (TWTR) allowed followers to order a pizza through a tweet.
More than 60% Domino's sales come through digital channels. All digital orders run through Domino's custom operating system. The data collected through the system became a "competitive advantage," which helped launch a loyalty rewards program .
*Domino’s even launched the ability to voice order your pizza through mobile application.
*Domino's continues to develop new ways to order, including texting a pizza and through Alexa, Google Home, Twitter, Facebook, Slack, Apple Watch, Smart TVs and Ford cars.
*Domino’s is also testing drone and robot delivery overseas and partnered with Ford on self-driving delivery.
Domino's (DPZ) stock bottomed out at under $3 a share in 2008 and its stock has jumped to $277 today.
Domino’s has transformed themselves from pizza company to a technology company and I anticipate they will continue to take market share in the future.
This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.
Published on
by rollandthomas
As a user, I can definitely appreciate what they have been able to achieve. Its quite impressive from a company from the food service industry as they have found a way to differentiate themselves. However, the question will be whether they have done it enough to separate themselves from the rest.
I think as long as they are utilizing and pushing the limits of technology, they should be fine. What I don't know is if they have opportunities to grow oversees, if so, they should be fine. However, at some point, the stock price has to pull back...the chart sort of looks like Netflix.
Interesting to know how Domino's transformed!
Posted using Partiko Android