The database is a "competitive advantage," said Stifel analyst Chris O'Cull. That's good for business: Customers spend more money online than over the phone as they sort through the menu and add items to their basket.Īll digital orders run through Domino's custom operating system, which helps franchisees keep transaction costs down and gives Domino's insights about their customers. More than 60% Domino's sales come through digital channels. How cool is that?'.Let me call Domino's,'" Weiner said.īut not as many people are ordering over the phone these days. "We think people look at that and say 'Wow.
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. In 2015, Domino's unveiled a custom delivery vehicle with a heating oven called the DXP. Unlike rivals, Domino's focuses on creating new tech and then develops engaging advertising around it to connect with customers and stand out in a fragmented field with national chains, regional stores and independent players. "How good can your pizza be if you have to change it every month and if you have to price it differently every month?" "Fast food marketing is designed around product of the month with a price special," Weiner said. Weiner pointed to catchy advertising campaigns such as a failed effort to develop a cookie pizza and a spot with Doyle holding up a picture of a crushed Domino's pizza in a delivery gone wrong. Russell Weiner, Domino's COO and its former marketing chief, said in an interview that the company has taken a different approach to brand building than other restaurants. Franchisees own more than 90% of Domino's 15,000 stores worldwide and Domino's makes money through franchise fees and selling the stores ingredients and equipment. Domino's has surpassed Pizza Hut as the market share leader with a 17% hold of the quick-service pizza business and its stock has jumped to $223.ĭoyle also convinced franchise owners to fund the re-invention, noted Aaron Allen, a restaurant consultant. It introduced a value offering in 2011 - two medium, two-topping pizzas for $5.99 each - and expanded the deal to allow customers to mix and match food as it added sandwiches, pasta and chicken and overhauled 85% of the menu.Ĭheaper food than rivals Pizza Hut, Papa John's and Little Caesars and upgraded choices won back customers and drove sales growth. Led by CEO Patrick Doyle, the company launched what it called the "pizza turnaround" in 2010.ĭoyle, who is stepping down in June, appeared in ads with Domino's workers reading blunt reviews: "worst pizza I've ever had," "sauce tastes like ketchup" and "the crust tastes like cardboard."ĭomino's said it heard the critics and scrapped its 49-year-old pizza recipe. And it faced an even bigger problem: Customers thought the pizza was lousy. The following year, two employees posted a food tampering video on YouTube. Domino's ( DPZ) stock bottomed out at under $3 a share in 2008.
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