Tuesday, March 4, 2014

Domino’s Pizza a Model of Evolving Success

Domino’s Pizza is a business model that has evolved dramatically under CEO Patrick Doyle. While hand held food for immediate consumption is a very competitive niche. When Doyle arrived Domino’s core products were more a reflection the past than the present.
Bold is not a strong enough word to describe the dramatic moves Doyle made specifically changing the core pizza, dough, sauce, cheese etc. Never has a restaurant company changed its core product as much a Doyle did at Domino’s.  The results were history making and Domino’s continues to evolve faster than competitors on many fronts.
Recently Domino’s Pizza reported domestic same-store sales rose 3.7 percent in the fourth quarter, lapping a positive 4.7 percent in Q2 2012. Domino’s experienced both an order count and a ticket lift during the period. CEO Patrick Doyle said domestic drivers include "great promotions, quality products, strong service, compelling advertising and customer-friendly technology innovations."
Technology Customers and Mobile Drive Market Acceptance
Ready-2-Eat customers have not sat still.  Domino’s late to the digital platform has been making up for tie under Doyle.  Digital sales now account for "well over" 40 percent of domestic sales. Domino's ended 2013 with about $3 billion in digital sales globally according to Doyle.
"It took our company 38 years to hit $3 billion in global retail sales, but just over 5 years to hit this number in global digital sales, which demonstrates the rapid growth of this platform," Doyle said.
About 10 percent of Domino's business comes from walk-ins, while 90 percent comes from order ahead, whether over the phone or through a digital channel.
"We are now basically right at the point where we are doing just about equal amount of sales digitally versus over the phone," Doyle said. If success does leave clues Domino’s has picked up the right CEO and the right clues.

Foodservice Solutions® specializes the Ready-2-Eat and Heat-N-Eat Fresh Prepared Food niche aka the Grocerant niche.  www.FoodserviceSolutions.us  We can help you identify, quantify and qualify additional food retail segment opportunities or a brand leveraging integration strategy

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