Domino's Pizza

From Wikipedia, the free encyclopedia

Domino's Pizza

Domino's Pizza corporate headquarters in Ann Arbor,

Michigan.
Type
Public
Traded as
NYSE: DPZ
Industry
Pizzerias
June 10, 1960
Founded
Ypsilanti, Michigan, U.S.
Tom Monaghan
Founders
James Monaghan
Domino Farms Office Park
Headquarters Ann Arbor Charter Township,
Michigan, United States
Area served Worldwide
Tom Monaghan, Founder
Key people
J. Patrick Doyle, CEO
Italian-American cuisine, Pizza,
Products
pasta, chicken wings, submarine
sandwiches, wraps, desserts
Revenue
$2.2165 billion USD (2016)[1][2]
Operating
$405.4 million USD (2015)[1][2]
income
Net income
$306.2 million (2015)[1][2]
Number of
260,000 (2015)[2]
employees

Website

www.dominos.com/en/

Domino's Pizza is an American pizza restaurant chain and international franchise pizza
delivery corporation headquartered at the Domino Farms Office Park (the campus being
owned by Domino's Pizza co-founder Tom Monaghan) in Ann Arbor Charter Township,
Michigan, United States, near Ann Arbor, Michigan. Founded in the United States in 1960,
Domino's is in 81 countries, making it the second-largest franchised pizza chain after Pizza
Hut.

Contents

1 History
o 1.1 1960s-1990s
o 1.2 International expansion

1.2.1 China

o 1.3 Sale
o 1.4 Present
o 1.5 Innovations
o 1.6 Naming

2 Products
o 2.1 Beverages

3 Corporate governance
o 3.1 Charitable activities

4 Advertising
o 4.1 30-minute guarantee

5 Franchises

6 See also

7 References

8 External links

History
1960s-1990s
In 1960, Tom Monaghan and his brother, James, purchased DomiNick's, a small pizza store in
Ypsilanti, Michigan, near Eastern Michigan University.[3] The deal was secured by a $500
down payment, and the brothers borrowed $900 to pay for the store.[4] The brothers planned
to split the work hours evenly, but James didn't want to quit his job as a full-time postman to
keep up with the demands of the new business. Within eight months, James traded his half of
the business to Tom for the Volkswagen Beetle they used for pizza deliveries.[4] By 1965, Tom
Monaghan had purchased two additional pizzerias; he now had a total of three locations in
the same county. Monaghan wanted the stores to share the same branding, but the original
owner forbade him from using the DomiNick's name. One day an employee returned from a
pizza delivery and suggested the name Domino's. Monaghan immediately loved the idea and
officially renamed the business Domino's Pizza, Inc. in 1965.[4]
The company logo originally had three dots, representing the three stores in 1965.[4]
Monaghan planned to add a new dot with the addition of every new store, but this idea
quickly faded, as Domino's experienced rapid growth.[4] Domino's Pizza opened its first
franchise location in 1967[5] and by 1978 the company expanded to 200 stores.[6] In 1975,
Domino's faced a lawsuit by Amstar Corporation, the maker of Domino Sugar, alleging
trademark infringement and unfair competition. On May 2, 1980, the Fifth Circuit Court of
Appeals in New Orleans found in favor of Domino's Pizza.[7]

International expansion

Dominos Pizza in Tuxtla Gutirrez, Chiapas, Mexico.

Domino's outlet in Himayatnagar, Hyderabad, Telangana, India.

On May 12, 1983, Domino's opened its first international store, in Winnipeg, Manitoba,
Canada.[8] That same year, Domino's opened its 1,000th store overall. In 1985, they opened
their first store in the United Kingdom in Luton.[9] Also in 1985, Domino's opened their first
store in Tokyo, Japan. In 1993, they became the second American franchise to open in the
Dominican Republic and the first one to open in Haiti, under the direction of entrepreneur
Luis de Jess Rodrguez.[10] By 1995, Domino's had expanded to 1,000 international
locations. In 1997, Domino's opened its 1,500th international location, opening seven stores
in one day across five continents.[11] As of February 11, 2016, Domino's operates 1004 stores
across 230 cities in India.[12] By 2014 the company had grown to 6,000 international locations
and was planning to expand to pizza's birthplace, Italy; this was achieved on October 5, 2015
in Milan with the first restaurant. CEO Patrick Doyle in May 2014 said the company would
concentrate on its delivery model there.[13]
China
Domino's Pizza chose to use its traditional delivery-based business model in China, neither
altering its flavors nor reducing the sizes of pizzas,[14] and promising a 30-minute delivery
time.[15] The delivery time promise failed due to Chinese automobile traffic patterns stymieing
the delivery operations.[15] The large pizza sizes prevented Chinese people from using knives
and forks to eat them,[14] and takeout services were unpopular with Chinese people due to
cultural reasons.[16] Savio S. Chan (Chinese: ; pinyin: Chn Shohng) and Michael
Zakkour, authors of China's Super Consumers: What 1 Billion Customers Want and How to
Sell it to Them, wrote that Domino's "failed miserably" in its strategy,[15] resulting in the
company being "basically" irrelevant in China, with 40 restaurants as of 2014.[14] By January
2014 the company introduced small restaurants in the China market. Jamie Fullerton of Vice
stated that these restaurants served "solid, mildly overpriced pizzas" and did not have unique
to China menu items.[17]

Sale
In 1998, after 38 years of ownership, Domino's founder Tom Monaghan announced his
retirement, sold 93 percent of the company to Bain Capital, Inc. for about $1 billion, and
ceased being involved in day-to-day operations of the company.[18] A year later, the company
named David A. Brandon as its CEO.[19]

Present

Domino's Pizza logo used from 1996 until mid-2010s in major English-speaking countries,
and still use in many others
In 2004, after 44 years as a privately held company, Domino's began trading common stock
on the New York Stock Exchange under the ticker symbol "DPZ".[20] Industry trade
publication Pizza Today magazine named Domino's Pizza "Chain of the Year" in 2003, 2010,
and 2011.[21][22][23] In a simultaneous celebration in January 2006, Domino's opened its 5,000th
U.S. store in Huntley, Illinois, and its 3,000th international store in Panama City, Panama
making 8,000 total stores for the system.[24] In August 2006, the Domino's location in
Tallaght, Dublin, Ireland, became the first store in Domino's history to hit a turnover of $3
million (2.35 million) per year.[25] As of September 2006, Domino's has 8,200+ stores
worldwide, which totaled $1.4 billion in gross income.[26]

Innovations
In 2007, Domino's introduced its Veterans Delivering the Dream franchising program and
also rolled out its online and mobile ordering sites.[6] In 2008, Domino's introduced the Pizza
Tracker, an online application that allows customers to view the status of their order in a
simulated "real time" progress bar.[27] The first Domino's with a dining room opened in
Stephenville, Texas, giving the customers the option to either eat in or take their pizza home.
Since 2005, the voice of Domino's Pizza's US phone ordering service has been Kevin
Railsback.[28]
In a 2009 survey of consumer taste preferences among national chains by Brand Keys,
Domino's was last tied with Chuck E. Cheese's. In December that year, Domino's
announced plans to entirely reinvent its pizza. It began a self-critical ad campaign in which
consumers were filmed criticizing the then-current pizza's quality and chefs were shown
developing a new pizza.[29][30] The new pizza was unveiled that same month. The following
year, 2010 and Domino's 50th anniversary, the company hired J. Patrick Doyle as its new
CEO and experienced a 14.3% quarterly gain. While admitted not to endure, the success was
described by Doyle as one of the largest quarterly same-store sales jumps ever recorded by a
major fast-food chain.[31][32]
In 2015, Dominos unveiled a special "pizza car" that can carry 80 pizzas, sides, 2-liter bottles
of soda and dipping sauces.[33] It also has a 140-degree oven on board and is more fuel
efficient than a standard delivery car. Officially named the DXP, the car is built on the Chevy
Spark platform and each car will be retired once it hits 100,000 miles.[34]

Naming
In 2012, Domino's Pizza changed their name to simply Domino's to emphasize their variety
of non-pizza product some like: chicken wings, apple pies, lasagna and pasta. At the same
time, Domino's introduced a new logo that removed the blue rectangle and text under the
domino in the logo, and changed the formerly all-red domino to be blue on the side with two
dots and red on the side with one dot.[35][36]

Products

Domino's Pizza (Malaysia), Chicken Pepperoni, New York Crust.

The Domino's menu varies by region. The current Domino's menu in the United States
features a variety of Italian-American entrees and side dishes. Pizza is the primary focus, with
traditional, specialty, and custom pizzas available in a variety of crust styles and toppings. In
2011, Domino's launched artisan-style pizzas. Additional entrees include pasta, bread bowls,
and oven-baked sandwiches. The menu offers chicken side dishes, breadsticks, as well as
beverages and desserts.[37]
From its founding until the early 1990s, the menu at Domino's Pizza was kept simple relative
to other fast food restaurants, to ensure efficiency of delivery.[38] Historically, Domino's menu
consisted solely of one pizza in two sizes (12-inch and 16-inch), 11 toppings, and Coca-Cola
as the only soft drink option.[39]

A "make line" at a Domino's

The first menu expansion occurred in 1989, with the debut of Domino's deep dish or pan
pizza. Its introduction followed market research showing that 40% of pizza customers
preferred thick crusts. The new product launch cost approximately $25 million, of which $15
million was spent on new sheet metal pans with perforated bottoms.[40] Domino's started
testing extra-large size pizzas in early 1993, starting with the 30-slice, yard-long "The
Dominator".[41]
Domino's tapped into a market trend toward bite-size foods with spicy Buffalo Chicken
Kickers, as an alternative to Buffalo Wings, in August 2002. The breaded, baked, white-meat
fillets, similar to chicken fingers, are packaged in a custom-designed box with two types of
sauce to "heat up" and "cool down" the chicken.[42][43]
In August 2003, Domino's announced its first new pizza since January 2000, the Philly
Cheese Steak Pizza. The product launch also marked the beginning of a partnership with the

National Cattlemen's Beef Association, whose beef Check-Off logo appeared in related
advertising.[44] Domino's continued its move toward specialty pizzas in 2006, with the
introduction of its Brooklyn Style Pizza, featuring a thinner crust, cornmeal baked in to add
crispness, and larger slices that could be folded in the style of traditional New York-style
pizza.[45]
In 2008, Domino's once again branched out into non-pizza fare, offering oven-baked
sandwiches in four styles, intended to compete with Subway's toasted submarine sandwiches.
Early marketing for the sandwiches made varied references to its competition, such as
offering free sandwiches to customers named "Jared," a reference to Subway's spokesman of
the same name.[46]
The company introduced its American Legends line of specialty pizzas in 2009, featuring
40% more cheese than the company's regular pizzas, along with a greater variety of toppings.
[47]
That same year, Domino's began selling its BreadBowl Pasta entree, a lightly seasoned
bread bowl baked with pasta inside, and the Lava Crunch Cake dessert, composed of a
crunchy chocolate shell filled with warm fudge.[48] Domino's promoted the dessert by flying
in 1,000 cakes to deliver at Hoffstadt Bluffs Visitor Center near Mount St Helens in
Washington State.[49]
In 2010, shortly after the company's 50th anniversary, Domino's changed its pizza recipe
"from the crust up", making significant changes in the dough, sauce, and cheese used in their
pizzas.[50] Their advertising campaign admitted to earlier problems with the public perception
of Domino's product due to taste issues.[51][52]
In September 2012, Domino's announced it was going to roll out a pan pizza on September
24, 2012.[53] Following this move, the Deep Dish pizza was discontinued after 23 years of
being on the menu.
In December 2013, Domino's Pizza, in Israel, unveiled its first vegan pizza, which uses a soybased cheese substitute.[54][55]
After a stock low point in late 2009, the company's stock had risen 700 percent in the five
years preceding February 2016.[56] Even as the American economy has suffered and
unemployment has risen, Domino's has seen its sales rise dramatically through its efforts to
rebrand and retool its pizza.[57]
In 2014 Domino's Pizza in Nigeria introduced the new Jollof Rice Pizza and The Beef Stew
Pizza.

Beverages
Domino's serves Coca-Cola products and is the only "Big Four" pizza chain to do so. Rivals
Papa John's Pizza and Little Caesars sold Coca-Cola in the past, but both switched to Pepsi,
in 2012 and 2007, respectively. Pizza Hut, due to its previous ownership by PepsiCo, has a
lifetime contract to sell Pepsi products. Domino's Pizza in Mexico switched to Pepsi in
November 2012 and Domino's Pizza in Malaysia, Pakistan, Spain, New Zealand and Taiwan
are with Pepsi as well.

Corporate governance
Domino's management is led by J. Patrick Doyle, CEO from March 2010, formerly president
of Domino's USA. Previous chief executive David Brandon remains chairman.[58] Among 11
executive vice presidents are Jeffrey Lawrence, CFO; Stan Gage, Team USA; Scott Hinshaw,
Franchise Operations and Development; and Kenneth Rollin, General Counsel.[59] Domino's
operations are overseen by a board of directors led by Brandon. Other members of the board
are J. Patrick Doyle, Andy Ballard, Andrew Balson, Diana Cantor, Richard Federico, James
Goldman, Bud Hamilton and Gregory Trojan.[60]

Charitable activities
In 2001, Domino's launched a two-year national partnership with the Make-A-Wish
Foundation of America. That same year, company stores in New York City and Washington
D.C. provided more than 12,000 pizzas to relief workers following the September 11 attacks
on the World Trade Center and The Pentagon. Through a matching funds program, the
corporation donated $350,000 to the American Red Cross' disaster relief effort.[11] In 2004,
Domino's began a partnership with St. Jude Children's Research Hospital, participating in the
hospital's "Thanks and Giving" campaign since the campaign began in 2004, and raising $5.2
million in 2014.[61]

Advertising

Arie Luyendyk's Lola-Chevrolet which won the 1990 Indianapolis 500 for Doug Shierson
Racing.
In the 1980s, Domino's was well known for its advertisements featuring the Noid. That
concept was created by Group 243 Inc. who then hired Will Vinton Studios to produce the
television commercials that they created. The catchphrase associated with the commercials
was "Avoid the Noid."
Due to a glitch on the Domino's website, the company gave away nearly 11,000 free medium
pizzas in March 2009. The company had planned the campaign for December 2008 but
dropped the idea and never promoted it. The code was never deactivated, however, and
resulted in the free giveaway of the pizzas across the United States after someone discovered
the promotion on the website by typing in the word "bailout" as the promotion code and then
shared it with others on the Internet. Domino's deactivated the code on the morning of March
31, 2009 and promised to reimburse store owners for the pizzas.[62]
Domino's sponsored CART's Doug Shierson Racing, which was driven by Arie Luyendyk
and won the 1990 Indianapolis 500. In 2003, Domino's teamed up with NASCAR for a multi-

year partnership to become the "Official Pizza of NASCAR."[63] Domino's also sponsored
Michael Waltrip Racing and driver David Reutimann during the 2007 season in the NASCAR
Sprint Cup Series.

30-minute guarantee
Starting in 1973, Domino's Pizza had a guarantee that customers would receive their pizzas
within 30 minutes of placing an order or they would receive the pizzas free. The guarantee
was reduced to $3 off in the mid-1980s. In 1992, the company settled a lawsuit brought by
the family of an Indiana woman who had been killed by a Domino's delivery driver, paying
the family $2.8 million. In another 1993 lawsuit, brought by a woman who was injured when
a Domino's delivery driver ran a red light and collided with her vehicle, the woman was
awarded nearly $80 million, but accepted a payout of $15 million.[64] The guarantee was
dropped that same year because of the "public perception of reckless driving and
irresponsibility", according to then-CEO Tom Monaghan.[64]
In December 2007, Domino's introduced a new slogan, "You Got 30 Minutes," alluding to the
earlier pledge but stopping short of promising delivery in half an hour.[65]
The company continues to offer the 30 minute guarantee for orders placed in its stores
situated in Colombia, India, Vietnam, Mexico and Turkey.
In Malaysia and Singapore, a refund is instead substituted with a "Free Regular Pizza
Voucher".[66][67]
In India, the guarantee is for 300 ($5) and is valid for an order of less than 4 pizzas.

Franchises

Domino's Pizza World Map

Domino's Pizza currently has locations in 73 countries. It has its stores in 5,700 cities
worldwide (2,900 international and 2,800 in the US). Domino's had approximately 11,000
stores as of the first quarter of 2014, with 774 in the UK, 4,986 in the US, and 1010 in India.
[68][69]
In most cases, Domino's has master franchise agreements with one company per
country, but three companies have acquired multiple master franchise agreements, covering
multiple countries:

The rights to own, operate, and franchise branches of the chain in Australia, New
Zealand, France, Belgium, the Netherlands, and Monaco are currently owned by
Australian Domino's Pizza Enterprises, having bought the master franchises from the

parent company in 1993 (Australian and New Zealand franchises) and 2006
(European franchises).

The master franchises for the UK and Ireland were purchased in 1993 by the British
publicly listed Domino's Pizza Group, which acquired the master franchise for
Germany in 2011 and Switzerland, Liechtenstein, and Luxembourg in August 2012 by
buying the Swiss master franchise holder, with an option to acquire the Austrian
master franchise as well.[70][71][72]

The master franchises for India, Bangladesh, Nepal, and Sri Lanka, are currently
owned by the Indian company Jubilant FoodWorks. India is the largest international
market for Domino's outside its home market. The company operates 1004 stores
across 230 Indian cities as of February 11, 2016. Apart from the United States, India
is the only country that has over 1000 Domino's outlets. Indian pizza flavors such as
paneer pizza, chicken tikka masala pizza, and kheema do pyaza pizza have been sold
in other international markets.

In February 2015, Cockroaches and rodent droppings found in the kitchens of some
Domino's Pizza joints in Peru have caused the company to shut temporarily
operations in the country[73][74] until August 28, 2016.[75]

See also

List of pizza chains of the United States

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"Roaches, rodents force Domino's Pizza to close in Peru".

www.dailymail.co.uk. Retrieved February 3, 2015.

74.

"Domino's Pizza to temporarily close doors in Peru due to infestation".

www.peruthisweek.com. Retrieved February 3, 2015.

75.

"Despus de escndalo, Domino's Pizza vuelve al mercado peruano" (in

Spanish). la republica.pe. Retrieved August 28, 2016.

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Domino's Pizza

Companies listed on the New York Stock Exchange

American brands

Restaurants established in 1960

Companies based in Ann Arbor, Michigan

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Fast-food chains of the United States

Pizza chains of the United States

Pizza chains of the United Kingdom

Pizza chains of South Korea

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