How Domino’s Pizza Drove a 90x Increase in Stock Value by Acting Like a Tech Startup

How Domino’s Pizza Drove a 90x Increase in Stock Value by Acting Like a Tech Startup

Startups can learn some of the most valuable lessons on product and marketing from the increase of the world ’ south biggest pizza chain .
The narrative of Domino ’ s Pizza is a bomber ’ mho travel. It ’ s a narrative of reinvention. Domino ’ randomness had a 180-degree company overhaul and turned critics into superfans by being honest with themselves about their weaknesses. They took a huge, chilling risk and completely scrapped and remade their core intersection : pizza .

At the lapp time, the party has been perceptive about where their true measure is for customers. They know customers love them because they ’ ra convenient—and in holocene years they ’ ve used engineering to double down on the appliance and dependability that define the core of their brand.

This self-awareness, and the guts to act on it, has paid off. now they ’ rhenium punch far above their weight class. Domino ’ sulfur stock has grown 90x from $ 2 to $ 180 since 2010. These emergence rates dwarf those of Facebook, Google, Amazon, and Apple .
They ’ re besides seeing a long ton of engagement and feedback on social media from customers-turned-brand-advocates . Domino ’ mho Pizza went from being an underperform company in a identical traditional diligence with a bad core product to an inspire, once-in-an-industry example of flawless sword awareness, product development, and commercialize. The kicker is that they pulled it off by thinking like a inauguration. Let ’ s take a closer look at how :

  • Domino’s Pizza grew their company and brand in the early days and cemented their reputation for fast, cheap, convenient pizza delivery.
  • Domino’s listened to—and acted on—customer feedback and completely recreated their pizza recipe in response to criticism about the terrible taste.
  • Domino’s continued to reimagine ways to order pizza and is using all of the technology available to them to double down on convenience in ordering and delivery.

Go ahead and order a pizza while you read on—it will be there soon .

1960-2007: Convenience as a brand

Fifty years before Apple released its brand-defining iPhone, forty years before Salesforce brought software to the obscure, and thirty years before Tim Berners-Lee invented the World Wide Web, two brothers started a pizza company that would become an pioneer in occupation and technology and one of the most love brands in America .
The wind hero ’ s travel from growing franchise to public embarrassment to—finally—the stock-picker darling began with some of the same best practices that we use in business today. Domino ’ sulfur built a firm foundation for longevity because they understood their own kernel value and knew what their market wanted .
immediately, about sixty years by and by, they ’ re still growing at a brainsick pace. Their pace of invention is putting other food brands, and even technical school companies, to shame .
And though their manner of speaking guarantees, selling campaigns, and flush the pizza itself have gone through radical changes, most of their core principles are the like. When Tom and Jim Monaghan took over an old pizza living room in 1960 and started growing their own pizza business, they hit the peak moves from the basic clientele playbook. Tom and Jim did a short ton of research about the pizza industry and the competitors. They thought cautiously about operations behind the scenes as they franchised and scaled. They entered into the market with one product, pizza, and began to expand out into a pizza ecosystem by adding new products like Cheesy Bread and Cinna Stix .
But most importantly, they were very self-conscious and would craft their brand and messaging around the things they knew were most significant to their market. The establish team sympathize that Domino ’ second was not barely a pizza company—it was besides a pizza rescue company. convenience and dependability are always going to be authoritative to people who are ordering pizza, and these are the kernel values that Domino ’ s recognized promptly and doubled down on in their early message and mark market .

With these solid practices in invest, the growth of the Domino ’ s Pizza empire was firm and ferocious. here ’ s how these early years unfolded and how Domino ’ s spent its first 50 years establishing public toilet as a brand .
1960: After working years of odd jobs and trying to save money for college, 23-year-old Tom Monaghan moved binding to his hometown of Ann Arbor, Michigan with his buddy Jim. The two listen that a local pizza business, DomiNick ’ randomness, was up for sale. Tom took out a $ 900 lend from the Post Office credit union and bought the denounce in Ypsilanti, Michigan. Neither had a background in business or the pizza diligence, but the brothers were excited to try their bridge player at campaign and expanding the local anesthetic business. A few months after opening, Jim wanted out and traded his half of the business, leaving Tom as the alone owner .
In the very first few years, Tom made some smart business decisions that allowed the business to grow strong even while it was small. For example, he emphasized delivery quickly because the store itself didn’t have much seating. In another smart move, he cut back additional items he’d started adding to the menu, because he realized that focusing on pizza was operationally more manageable and turned better volume and revenue. For example, he emphasized delivery cursorily because the memory itself didn ’ deoxythymidine monophosphate have a lot seat. In another smart move, he cut back extra items he ’ d started adding to the menu, because he realized that focusing on pizza was operationally more manageable and turned better volume and tax income. Profits grew from $ 99 a week to $ 750 a workweek. 1965-1967: Tom Monaghan ’ s pizza business operated under the mention DomiNick ’ second for several years. But the original owner wanted to maintain the rights to the name, so Monaghan chose “ Domino ’ s Pizza ” alternatively, put an ad for it in the Yellow Pages, and incorporated in 1965. then he started franchising. This was reasonably rare then, but Monaghan was determined to expand. The terms for the franchise ( where Domino ’ mho would keep 2.5 percentage as royalties from sales, 2 percentage to cover advertising, and 1 percentage for bookkeeping ) were decidedly tailored to motivate franchise and expansion preferably than optimizing profits. Monaghan said later in his autobiography, “By today’s standards, the royalties were far too favorable to the franchisee. But it served our purpose then, and I was not concerned about covering all future contingencies.”
1973: Fast rescue and great service had always been a priority for Monaghan. He spent the first ten-spot years of his pizza occupation trying to streamline and improve pitch, cutting ingredients out of the pizza recipe for faster fudge meter and designing corrugated boxes that would keep pizza hot during delivery. But one of the biggest improvements on delivery time came from franchising. now the company was franchising thus promptly that they opened a College of Pizzarology to train people who wanted to open a franchise storehouse. This was bright for the company ’ mho growth because it ensured that stigmatize and operations remained reproducible .
This inspired Domino’s first delivery guarantee: “a half hour or a half dollar off.” This slogan gained a lot of press attention and helped customers start to associate the brand with fast and convenient delivery.
By spreading out to more areas, Domino ’ s Pizza could be more confident that a storehouse would be close up to a customer ’ s home.This motto gained a set of press attention and helped customers start to associate the sword with fast and commodious delivery. 1978: Domino ’ s continued to drive growth beyond just franchising—in the late 1970s, they besides led several mergers with other regional pizza companies. This allowed them to gain territory in more geographic areas very cursorily. For example, they acquired Pizza Co, Inc. and gained 23 new stores in Kansas, Arizona, and Nebraska .
1979: Domino ’ s continued the rapid skill and expansion and merged with Mueller ’ s Ohio Pizza Enterprises, Inc. and added 50 stores in Ohio and Texas. At this point they ’ vitamin d grown to 287 stores internationally and announced plans to expand internationally. Because they were growing so quickly, they had to take some big operational measures to keep things like quality assurance, training, brand, and finances in check. For exercise, Monaghan hired Doug Dawson as a VP of marketing and corporate treasurer, and John McDevitt as a fiscal adviser. They helped him create modern account methods and systems for loaning money to franchisees. To keep operations under control, Monaghan besides divided the business nationally into regions with regional managers. Monaghan said the decision “ gave us the long communication lines with tight controls at the working ends that we needed for rapid but well-orchestrated emergence. ”
The same year, Domino’s also began their “30 minutes or it’s free” delivery guarantee. This was another huge go to cement their niche in the increasingly competitive pizza market. They wanted to win customers ’ hearts and carve out a space in their brain with the guarantee of fast rescue. The market strategy was enormously effective for winning customers because the guarantee of quick delivery or complimentary pizza was a win-win. On the other handwriting, it didn ’ t have as positive of an effect on the brand as they would have expected. even though customers did come to associate Domino ’ s with fast delivery, they besides gained a reputation for recklessness and disregard for populace safety because the policy encouraged delivery drivers to speed .
1985: Advertising Age wrote that Domino ’ randomness was “ among the fastest-growing money makers in the restaurant industry. ” Just a few years earlier they ’ d opened their first non-U.S. memory in Winnipeg, Canada, and began international expansion. To stay competitive, they needed to be growing this quickly—at this clock, Domino ’ sulfur faced contest from Pizza Hut, who had 4,000 units while Domino ’ sulfur had 2,300. In response, they raised their advertise spend 249 % from the former class. They introduced a newly advertise campaign to emphasize convenience and facilitate : “ One call Does It All. ” Just two years later, they’d grown total systemwide sales to $1.44 billion and had 3,605 units.

1993: After over 20 deaths involving Domino ’ randomness drivers, Domino ’ sulfur ended their “ 30 minutes or it ’ randomness release ” rescue guarantee. Monaghan ’ s official statement on the end of the policy : “ With our achiever in family delivery has come a damaging public perception that we are not committed to safety. ” Convenience and delivery remained central to the company ’ south brand, but the specific rescue guarantee was dropped .
1999: Monaghan retired as president and CEO David A. Brandon took over. Monaghan had created a hard foundation garment for the business, but Brandon was primed to continue expanding with an eye on the bottom line. He was known to ruthlessly shut down underperforming stores, but besides aggressively added new franchises. Within two years, Brandon had added 758 new stores. Domino ’ randomness besides opened their 2,000th oversea localization. Brandon was a selling pro and under his leadership, Domino ’ s began to add new products after about 40 years of serving equitable one kind of pizza .
2001: As depart of Brandon ’ s drive to expand and add extra tax income streams, Domino ’ sulfur added two fresh products : Cheesy Bread and Cinna Stix. competition in pizza delivery was still intense, and offering extra food items gave Domino another way to gain an border. Customers decidedly appreciated the additions. That year, systemwide sales grew 6.8 percentage over the former year, reaching $ 3.78 billion .
2003: Domino ’ mho kept building out the menu and their pizza ecosystem with the Domino ’ s Dots dessert and Philly Cheese Steak Pizza. The Philly Cheese Steak Pizza was a charge feat to connect with another american english consolation food. The then-VP of Marketing, Ken Calwell, said, “ It is the perfect all-American complement to the Domino ’ s Pizza menu. ”
2004: At the begin of 2004, Domino ’ south was $ 943.2 million in debt. They decided to hold an IPO after over 40 years as a private party and planned to use the money to help pay off some of the debt. It was leftover timing for a bequest party in a competitive industry, and the trade prices reflected that—-their IPO raised $ 337.4 million on 24.1 million shares, which was lower than the expected price range. S & P commented on the party ’ second “ weak cash hang protective covering measures. ” The saving seemliness, according to S & P, was the caller ’ south established brand and cost-efficient operate organization .
2007: By 2007, Domino ’ second was making around $ 2.2 billion in tax income in the United States alone, and $ 5.4 billion in gross worldwide. But rival was stiff—Domino ’ sulfur and Pizza Hut continued to butt heads as they competed for greater market share around the universe. To stay one measure ahead, Domino ’ second introduced on-line regulate and, a few months belated, mobile ordering. This was huge because Domino ’ s was the inaugural company in the pizza pitch industry to offer mobile regulate, which quite literally changed the way people thought about food rate and delivery. People could do it from devices they were already using and didn ’ triiodothyronine even have to talk to another person to place the order .
now, on-line and mobile ordain is our nonpayment. But Domino ’ s was the inaugural company in the diligence to introduce the estimate of ordering from your cell telephone without having to make a call. And they promptly took it even further. They gamified the ordering process with new features like a virtual Pizza Builder that brought pizza toppings to life on users ’ screens. They besides added another layer of appliance with their Pizza Tracker. now, for the first clock ever, users could follow the build up of their food from when they pressed the orderliness button to when the food arrived at their door. This made the march of ordering food so much more guileless and commodious that companies like Seamless, Postmates, and since caught on and copied it . As Domino ’ randomness entered the digital age, they cursorily positioned themselves as a leader. But they were lone able to do this because they ’ vitamin d built up such a firm basis in their beginning 50 years. They had a strong operations system as the spine of their arrangement and they kept a close eye on the bottomland channel to maintain commodity business fundamentals. They ’ d besides established a strong sword of appliance and dependability with their delivery guarantees and marketing campaigns. But in hurt of their fast increase and leadership in their industry, Domino ’ sulfur silent had one huge thing holding them back : their pizza .

2007-2012: The “crust-up” reinvention of crappy pizza

“ failure shows you how to do something right ” – Tom Monaghan
The most impressive part about Domino ’ s growth from 1960 to the early 2000s is that they became one of the biggest pizza delivery chains in the populace with some of the worst pizza in the populace .
Domino ’ mho had mastered delivering pizza cursorily and handily, and evening let you track the pizza all the direction to your door. The merely problem was that when it got there, people didn ’ metric ton want to eat it. As a business, they were advanced and resourceful. But their core product was terrible—and everyone knew it .
Customers constantly complained about the taste of the pizza. many compared it to cardboard .

Great market and convenience would only last so hanker. Domino ’ sulfur would finally crumble if people didn ’ t like their kernel product. As complaints got louder, this became more obvious. Domino’s ran consumer tests and discovered that people actually liked pizza less if they knew it was Domino’s than if they thought it was a random unbranded pizza.
“ We had somehow created a site where people liked our pizza less if they knew it was from us. then yea, that was a problem. ” – Patrick Doyle, CEO 2009-Present
then Domino ’ mho made one of their best business moves in history. They decided to respond to the droves of bad feedback by completely reinventing their pizza recipe .
It was enormously hazardous : a pizza company was admitting they had severe pizza. then they tried to improve it in the wide glower of the public eye. Everyone at the company was aflutter, but most thought it was a bang-up mind. And without taking this risk and creating a product that people actually loved, they would have never pivoted into the innovative, tech-first superbrand they are today .
It all started with the hardest part : acknowledging a helplessness .
2008: Domino ’ s continued to innovate and become more commodious and transparent with newfangled features like the Pizza Tracker and Pizza Builder. But they were focusing on the amiss things. They improved everything except the thing that needed it most: the pizza.
This is a party that had built the whole brand around fast and dependable delivery, and Marketing 101 says you focus on your point of specialization. We kept talking about delivery and 30 minutes or less, and it just stopped working. We realized that everyone in the worldly concern who wanted fast convenient pizza was already buying from us, and the people who wanted a bang-up pie merely were not. ” – Patrick Doyle
Shares were at a record low of $ 2.83 and customers took to social media to comment that Domino ’ s food was the “ worst excuse for pizza [ they ’ five hundred ] ever had, ” was “ wholly devoid of relish, ” and even that “ the sauce [ tasted ] like ketchup. ”
Many of the ingredients in Domino’s pizza recipe were frozen, canned, or pre-made in order to cut costs and preparation time. This was part of how they’d achieved their strong finances and unbeatable delivery times. But customer feedback and tanking share prices was a harsh reminder that the market wouldn’t support a crappy product. 2009-2010: Domino ’ sulfur used their severe reviews as motivation to wholly reinvent their pizza. The huge pivot coincided with Patrick Doyle join as CEO in 2010. This was enormously important because he spearheaded the transformation and pushed to create pizza that customers would love. That required radical carry through. The top chef at Domino ’ s began to overhaul the entire recipe by going back to the drawing board and redesigning unlike elements like the crust, the sauce, and the cheese. Chefs tested over ten types of crusts, fifteen types of sauces, and dozens of cheese. They mixed and matched different combinations to understand what flavors worked best together. In the end, they ended up with a wholly raw crust, sauce, and cheese recipes. The entire pizza was new .
They had a lot of fear and a lot of hope—just like a startup founder would have. It was a huge decision that would have downstream effects for the company for the rest of its existence. And as Patrick Doyle pointed out, the pain of losing is twice the happiness of winning, so people tend to be cautious. But in spite of these huge risks, they pulled the trigger because everyone on the team believed it was the right move.
The executive team at Domino ’ s bit their nails the entire time.It was a huge decision that would have downstream effects for the company for the remainder of its being. And as Patrick Doyle pointed out, the trouble of lose is twice the happiness of winning, sol people tend to be timid. But in malice of these huge risks, they pulled the trigger because everyone on the team believed it was the right go. “ Well, I can ’ t say there were not people who were concerned. Heck, I was concerned. It ’ mho normal to have discomfort in making a big decision, but other than that, we had 1,000 percentage conjunction on doing this. ” – Russell J. Weiner, former CMO
2012: While Domino ’ mho was reinventing their pizza recipe, they were working on another big product development. In 2012 they introduced an wholly new style of pizza to their menu : pan pizza. They ’ five hundred worked on the recipe for three years. Each pizza had to be hand-stretched. The modern pizza aligned with Domino ’ sulfur reinvigorated focus on putting more wish and campaign into their pizza .
Domino ’ second offered a bunch of topping options for their master pizza, but this was the inaugural time they ’ d released a new manner of pizza. It might have been prompted by pressure from Pizza Hut, who already offered pan pizza. This was a successful chess motivate by Domino ’ second. The new pan pizza became a favored with many customers and gained its own follow. “ Listen, I ’ m a New Yorker, I know pizza. But I will say that pan pizza showed up and I thought it was not atrocious. I actually classify of liked it. now I have a crave for it. The bread boodle is about like a focaccia … it ’ s crisp and it ’ s buttery and it ’ s reasonably delectable. ” – Jasmine Moy, Manhattan-based lawyer
The numbers showed the success of their big product changes, excessively. In the one-fourth quarter of 2012, Domino ’ s gross was up 7.5 % and net income income was up 21.6 % versus the prior-year period. The company had seen same-store sales emergence domestically and internationally and reported better function margins .
Domino ’ s pizza reinvention was an undeniable success. People loved the new pizza recipe and the new pizza styles. The public ’ sulfur entire percept of the ship’s company changed. Before, ordering from Domino ’ south meant sacrificing taste in order to get something to eat arsenic soon as possible. immediately, ordering from Domino ’ s was a fast and playfulness way to get a pizza that was “ reasonably dang estimable. ” Given that customers had been referring to their pizza as cardboard just a few years early, this was a 180-degree turnaround .
Another in truth important thing happened to Domino ’ south as a solution of this recipe renovation. The market realized that the company cared. now they weren ’ triiodothyronine precisely another generic company in a lineup of delivery pizza brands—they were a banteringly, creative company that went the extra mile to make customers felicitous. They had a personality and they had heart.

There were two really important factors that led to this change in perception: Domino’s embraced their crappy pizza, and they embraced digital channels to connect with their customers about it. The mind of “ owning up ” to how frightful their pizza was and atoning for the badly taste was central in all of their raw marketing campaigns from this prison term. They won back customers ’ faith. By leaning into the fact that their old pizza was very bad, Domino ’ s had new opportunities to be amusing and creative. In one campaign, they created hyper-personalized ads that instructed specific individuals to try their new pizza .
Embracing digital channels to communicate with customers about the reinvention was besides cardinal. For exercise, Domino ’ south put a bouncy, unfiltered Twitter feed of every conversation about their pizza on their home page and called it the “ Think Oven. ” Digital platforms were another way to put their money where their sass was and actually become more guileless and more accessible. In retrospect, Domino ’ s decision to reinvent their pizza seems obvious, but at the time, it was a huge risk. Bloomberg called it a “ once-in-an-industry ” move because Domino ’ second did something then heavily that most companies never even think to do it : they admitted their core product was bad and publicly reinvented it. But this was the drastic scheme they needed to turn their company about. It was besides pivotal because it paved the way for them to ramp up increase by shifting their focus to their other core rate : delivery .

2012-Present: Engineering the future of pizza delivery

“ What ’ s the easiest direction to order ? When you don ’ t have to do anything. ” – Dennis Maloney, Chief Digital Officer
After their recipe reinvention, Domino ’ second started delivering pizza that people actually wanted to eat. nowadays they could turn their attention from intersection to distribution .
delivery has constantly been central to the Domino ’ s Pizza business and mark. They ’ ve specified from their earliest days that they ’ re a pizza delivery company. This is how they ’ ve built convenience and dependability into their brand. They ’ ve been very self-conscious about this and it ’ s been one of their huge strengths .
But one of their other huge strengths is the ability to adapt. They adapted their pizza to respond to customer criticism. Their future adult move was to adapt their order and delivery services to adapt to the changing technology and UI landscape .
This international relations and security network ’ t a new concept for Domino ’ mho. Throughout its history, Domino ’ south has constantly focused on optimizing order and delivery. What ’ south been different in recent years is how they ’ re introduce : they ’ ra focusing more on leveraging the engineering available to them in the fullest and most creative ways. It ’ s a estimable place to double down in order to grow because digital orders are more profitable and get a better product mix .
The focus on the newest engineering, like self-driving cars, zero-click order, and drone manner of speaking services serve three larger trends in how Domino ’ randomness is innovating the summons of delivery. Their advances increasingly let the customer order from more devices, ask the customer to do less to place an order, and remove aspects of human interaction from ordering and delivery.
In this way, Domino ’ mho can scale their ordering and delivery processes at the rate of the latest technological advances. In a slow-to-change diligence that doesn ’ t press for initiation, they can imagine a future that does not even exist. They ’ re rightfully a technical school company that just happens to make and deliver pizza. Let ’ s take a expect at these most holocene developments to understand how Domino ’ s is technology the future of pizza delivery :
2014: Domino ’ s has constantly taken their ordering systems to the platforms they know customers are already using. so in 2014, it made feel for Domino ’ sulfur to release an iPad app. The excess mile, though, that truly showed how much they thought about the drug user experience was a 3D custom pizza build up feature .
This was a completely new, innovative way to arrange a pizza. It gave customers a more naturalistic idea of what their final examination order would look like. late that year, Domino ’ south besides introduced Dom, a Siri-like voice adjunct that helped people holy order pizza. The have of talking to the spokesperson assistant simulates talking to a actual person—for example, a customer can say “ I ’ d like a bombastic pepperoni pizza. ” But the human interaction is automated and the experience becomes simpler and more scalable .
These improvements to the digital ordering experience were critical for Domino’s at this time because digital orders accounted for about 40% of the company’s U.S. sales. And Domino ’ s took these innovations and UX improvements very badly by allocating the correct resources to this work. By 2014, the largest department at the Domino ’ s headquarters was the IT department .
2015: now Domino ’ s in truth leaned into their “ Anywhere ” crusade, which praised the convenience of being able to ordering a pizza from any place or any device. First, Domino ’ mho was the first major restaurant chain to make ordering possible from smartwatches. This allowed customers to place orders from pebble and Android Wear smartwatches and promised customers that they could “ order pizza from [ their ] wrist in literally three clicks. ”
The same class, Domino ’ s besides launched their celebrated “ tweet-to-order ” system. This allowed users to order pizza by tweeting an emoji pizza to the Domino’s Twitter score It was wholly new, wholly weird, and a little more complicate than it sounded off the bat—but the media and the commercialize eat it up. beyond just making it easier and more fun for people to place pizza orders, it turned Domino ’ s into a sociable media presence and made the mark tied more accessible to people on the social platforms they were already using to talk to their friends. In 2015, online orders surpassed non-online orders, and over half of online orders came from mobile.
2016: For Domino ’ south, making ordering more convenient think of making it available in more places. But it besides meant making the customer have to do less to place an order. The pinnacle of this development course was their “ zero-click ” ordering with a new app. Domino ’ sulfur would mechanically place a pizza order ten seconds after the user launched the app .
One executive explained how the company imagined that customers would use the app: “If [customers] have their hands full at home with the kids, are on the run at work or commuting home they can simply say five words and their supreme or meatlovers pizza is on its way.” Zero-click order was unprecedented and possibly evening a little unnecessary. But Domino ’ s used this new delivery method to drive dwelling their specific brand of convenience. In the lapp vein, that year Domino ’ south introduced ordering via Apple TV and Amazon Echo. Their trajectory for initiation was all about imagining how ordain pizza could fit into customers ’ lifestyles. As chief Digital Officer Dennis Maloney put it, they ’ ra “ about an e-commerce company that sells pizza. ”
2017: recently, Domino ’ randomness introduced another ordering platform : Facebook Messenger .

The theme was very exchangeable to its other mobile ordering platforms but helped Domino ’ s get more digital real estate .
early ideas cooking in 2017 were more group. Domino ’ s besides started testing self-driving pizza manner of speaking vehicles in Ann Arbor, Michigan. They teamed up with Ford to create a cable car that drives itself to a customer ’ south theater, has a built-in oven to keep the pizza warm, and features a winder pad where users can type their code to unlock the door .
It ’ second another mind that seems bizarre at inaugural and then brilliant. Self-driving cars are a hot topic in tech—and Domino ’ south figured out a way to use it to their advantage. It was such a good theme that other pizza delivery competitors are catching on. Earlier this year, Pizza Hut announced a partnership with Toyota on their self-driving delivery truck. But as with many other innovations in pizza rescue, Domino ’ s has the edge because they were there first .
This border is showing in their numbers. They ’ ve recently pulled in front of both Pizza Hut and Papa John ’ sulfur to become the biggest pizza chain in the worldly concern by ball-shaped retail sales. They reported $ 12.2 billion in global sales and $ 277.9 million in profits for 2017. Domino ’ s besides tracks same-store sales, which are sales from stores afford at least one class, and have seen them rise for 24 back-to-back quarters in the U.S. An analyst at Oppenheimer & Co. recently called this trajectory “ incredible. ”
The merely way to achieve incredible results is by doing things differently .
“ The standard playbook in the restaurant industry has been this ceaseless menstruation of new products, most of which do not change your typical customers ’ feel at all. [ Innovations in technology ] are not going to generate a firm return, but that ’ s part of how you stay ahead of the market. ” – Patrick Doyle
Patrick Doyle knows that taking risks with wyrd things like voice-enabled order and tweet-to-order systems aren ’ t the ways that food companies typically innovate. But for Domino ’ randomness, it has always been about the customer have and the long game. And alternatively of building a flash-in-the-pan clientele, they built an empire .

What’s next for Domino’s Pizza?

For Domino ’ second, reality is better than fabrication. They ’ ve raise that they ’ re forth thinking in their approach to product, customer communication, marketing, and manner of speaking. You can ’ thymine frame anything past this company—they ’ ra probably already working on your craziest theme .
It ’ mho playfulness to imagine all of the possibilities of where Domino ’ south could take their pizza conglomerate. here are a few ways Domino ’ s could innovate in high-value spaces :
VR Pizza Construction: Domino ’ south blew up the food industry when it released a 3D pizza builder on its iPad app. At that meter, in 2014, Apple was selling tens of millions of iPads and the market was obsessed with pad interfaces. This was the best leverage of the then-current engineering and market matter to. now, engineering and interests are changing again. The public ’ sulfur care is shifting to VR, which could be another actually successful platform for Domino ’ sulfur to engage users in new ways. In the coming years, Domino ’ mho could introduce a VR pizza build component into their ordering experience. To gamify the experience flush more, they could even introduce aspects of VR pizza building competitions between friends. This would help them become flush further integrated on social platforms. It might be a weird and hazardous move for Domino ’ south, but if they can pull it off, it would be another direction for them to stand out and stay ahead of the industry .
Make pizza fly: Don ’ triiodothyronine put anything past them—drone delivery actually international relations and security network ’ metric ton a wholly newfangled estimate for Domino ’ s. In 2016, Domino ’ s made the first-ever drone pizza manner of speaking to a pair in New Zealand .

They ’ ve besides experimented in 2013 with unmanned mini helicopter delivery in the UK. They called the device a DomiCopter .

The prototypes are there, but Domino ’ s hasn ’ deoxythymidine monophosphate launched device-driven delivery good so far. Though they ’ ve besides been experimenting with self-driving cars, making pizza fly would be a game-changer. It ’ s a wholly new way to deliver that doesn ’ thyroxine deal with the friction points around drivers, dealings, or considerable natural gas emissions. If Domino ’ s could scale up their drone delivery—potentially partnering with a company like Amazon that is making like plans—they ’ ll have one of the most efficient and forward-thinking manner of speaking systems in the universe .
Marketing fueled by psychology: correct now, Domino ’ sulfur selling is all about convenience and accelerate. But there are a lot of opportunities for them to engage different audiences in marketing campaigns by pulling on other psychological triggers. For exemplar, Pizza Hut created a program that has been running since 1984 to incentivize kids to read by giving them exempt pizza for reading a certain number of books. This kind of campaign not merely builds positive brand associations and commitment in a younger historic period demographic, it besides appeals to parents who appreciate incentive programs in schools. Domino ’ s could create campaigns around early psychological triggers like timbre ( focusing on fresh ingredients and local anesthetic partners ) or nutrition ( how to incorporate their better-for-you pizza into a healthy diet ) to help build more positive brand associations that run deeper than appliance .
In the future few years, I think that we ’ ll proceed to see Domino ’ randomness use the latest technology to their advantage and create thoughtful market that puts their core measure to customers at the vanguard of their mark trope in ways that surprise us .

3 Key Lessons from Domino’s Pizza

Domino ’ s narrative of brand development, product failure, reinvention, and now technological initiation doesn ’ thymine have to be siloed barely because they ’ re a pizza company. Domino ’ randomness has relied on key commercial enterprise fundamentals and good practices in order to grow and evolve their occupation. They ’ ve besides pushed a draw of new ideas forward that can become newly best practices not equitable for other food businesses, but for startups in any diligence .
here are three key takeaways from Domino ’ second unexpected trajectory :

Build organizational self-awareness

Domino ’ s knew their sword forward and backward. This helped them establish their trade name, but it helped them focus and stay grounded through the many different phases of their growth .
Domino ’ mho had clearly defined three significant things : their congress of racial equality prize proposal for customers ( public toilet ), how their operation would grow logistically ( franchising ), and what their most crucial growth lever was ( digital order ). With these pillars in stead, Domino ’ s was able to evolve and iterate tied through rough times .
Domino ’ south brain about their company and their organizational self-awareness is a useful template to other companies. Try asking your team the follow questions :

  • What is your company’s core value proposition to customers? (These are the particular differentiating features of your product or service.)
  • How will your company and business grow logistically? (How will you expand your internal teams to manage and facilitate increased business?)
  • Where are you biggest opportunities for growth? (Where should you be focusing future growth efforts based on technology and market interests?)

Reaching clearness on these points will ensure that you have a hard foundation for emergence, iteration, failure, and rally .

Use technology to exemplify what you are and what you believe in

Twenty years ago, not many business leaders would have predicted that a pizza company would pivot to become a technical school company. But that move is precisely what has given Domino ’ s an edge in a competitive market in the last few years .
Any big move like that has to be executed thoughtfully. Domino ’ s chemise to focusing on technical school invention has been successful because they haven ’ triiodothyronine stepped outside of their pilothouse. All of their innovations have been tightly related to their core value—pizza delivery—so these innovations have only made Domino ’ s more successful at what they ’ rhenium already trying to do .
This is an significant lesson for technical school startups and companies in other industries, excessively. today, every company is a technical school company. It doesn ’ t matter if you ’ re in the technical school industry—selling to businesses or consumers now requires you to use the properly means of technology to engage them. Getting ahead means remember of new ways to leverage technology, communication platforms, and distribution channels that others seaport ’ t think of yet .
Companies can examine their alone innovations in technical school and make sure each is driving the company’s core mission forward. Does the consumption of this engineering put up towards growing the North Star metric unit ?
next, companies can flip the question on its fountainhead and consider whether there are new ways to use technology to exemplify who they are and what their mission is. What advantage does the engineering lend that wasn ’ thyroxine possible before ?
Thinking like this avail companies stay focused while finding new ways to grow .

Use negative feedback to inspire you, not crush you

It was actually unmanageable for Domino ’ second to admit their pizza was frightful. But owning up to it helped them move ahead. Patrick Doyle said, “ You can either use negative comments to get you down, or you can use them to excite you and energize your process of making a better pizza. We did the latter. ”
It ’ south hard to hear negative feedback, specially about something that ’ mho core to your company. But with feedback, you always have a choice of how you respond to it. It ’ s significant to use criticism to fuel improvement. The other choice means becoming increasingly disconnected from your grocery store .
It ’ sulfur utilitarian to set up a way to collect and digest negative feedback early on in your company so that you have the process built into your deoxyribonucleic acid. Try thinking about it in these three components :

  • Collect: Solicit feedback from user surveys and record feedback given to customer service representatives
  • Learn: Flag negative feedback and set up a meeting for review by top-level team members.
  • React: Create a plan of action to act on negative feedback. This can be something as small as making a change to a customer’s account, or something as large as making a change to your core product.

Remember that every company has struggles and failures. only the smart ones recognize them and take legal action.

Read more: Who Invented Pizza?

Your drunk food delivery service is one of the fastest-growing tech businesses

Domino ’ south has always been the pizza that people order at 6pm when they ’ re hungry for dinner, at 8pm when they ’ re starting a movie, and at 2am when they want a late-night nosh. They know that and they ’ ve never changed that. now, they ’ ve good started to have more playfulness by reimagining what it means to be a pizza pitch company .
Domino ’ s has been on an ever-winding hero ’ sulfur travel. Their recent turnaround and innovations have been prime examples of how startups should overcome obstacles and apply forward-thinking to their core value. I ’ thousand excited to see what ’ mho adjacent for the pizza giant .