In the era of fast foods, one can not resist talking about Pizza at all. After all, Who doesn’t like PIZZA?
A slice of Pizza with topping of gold leaf and caviar can cost you up to $400. But this dish has much humble origins in comparison to its costly personality. It first appeared in Naples, Italy in the 1700s as food for the lower class.
When Italians migrated to U.S. , so did pizzas. New York people started to perfect the dish for good. If you go to that time period for Pizza then you would most likely be surrounded by the Italian Americans. To became a mainstream favourite, pizza needed a lot of help from the restaurant chains popping up in the mid-west.
Coming back to Domino’s, it was not founded by someone from Italian Heritage. In 1960, Toma and Jim Monahan , two Irish American brothers borrowed 900 dollars to buy a pizzeria called Dominic’s.
Within a few months, Jin gave his half of the business to Tom in exchange for Volkswagen Beetle, the same car they were using for the delivery for the Pizzas.
Now, the company was of all Tom’s and he changed the name of the company from Dominic’s to Dominos.
In 1967, Monahan started franchising the restaurants.
New franchises didn’t have to pay an initial fees to open their own stores. Instead of that, they had to manage the existing Domino’s restaurants for a whole year. The company decided to open these stores near colleges and the military bases as both of them had a lot of customers.
Domino’s ovens had rotating racks. It had standardized the delivery box and all of the pizzas started to look the same too. Around the same time, pizza hut and little Caesars were also getting their start in the Midwest. Little Caesars had 50 stores by 1969 but pizza hut was far and away the fastest growing chain of the 1960s.
Unlike domino’s, they wanted customers to eat their pizza inside their restaurants and it had more options.
Just 12 years after it was founded, pizza hut opened its 500th location but domino’s was doing its best to catch up. By 1978, it had 200 stores and the chain just kept growing from there. The pizza chain’s 30 minutes or less delivery promise help set it apart from the competition.
Domino’s created the guarantee in 1984 and for nearly a decade, the incentive worked but the company dropped it in 1993.
By 1998, domino’s had thousands of stores and 3.2 billion dollars in annual sales. Monahan decided to sell the company so he could focus on philanthropy instead.
He retired from Pizza biz with the money from the sale of his company.
David Brandon became the CEO of the company in 1999.
In 2004, Brandon took Domino’s in Public. Pizza wars started heating up in the late 1990s. The different brands for Pizza were having a fierce competition during that time line. Pizza Hut even sued Papa John’s for the false advertising.
In the early 2000s, China and India have become the new battlefield for the pizza wars. As major American Pizza players started opening their franchises in these countries.
You know that these countries are the most populous countries in the world, so all the pizza players started to dominate the people with the magic of their own pizza.
Domino’s couldn’t boost sales by hiking prices, so starting around 2003, sales unsurprisingly flattened.
Another big problem for domino’s was that its pizza became forgettable as it cut corners on ingredients in order to keep its pizzas cheap.
Domino’s used frozen canned and pre-made ingredients to cut down on costs as the economy started to slip.
In late 2009 , it launched an ad campaign that admitted what customers already knew that Domino’s pizza wasn’t good as it had cardboard crust and ketchup like sauce.
The commercials told customers that they had totally reformulated its recipe with a brand new sauce and a garlic infused crust. As folks realize that this really is an improved product from what domino’s had for years and years. It’s kind of been a snowball effect that continues
to benefit domino’s to this day. In the middle of its relaunch in 2010, Domino’s appointed Patrick Doyle as CEO, he had been with the company for more than a decade as an executive.
Now, he was entrusted to lead its turnaround.
Customers were buying the ad campaign and domino’s pizza. In fact the campaign was so successful that pizza hut later mimicked it in 2014 when it changed its own pizzas recipes.
In 2017, it overtook pizza hut as a market leader in the quick service pizza sector. Since 2010 , its stock has risen up more than 3, 200 percent. Even after Ritch Allison took over as CEO in June 2018, Domino’s tech focus has continued.
In early 2019, the company incorporated artificial intelligence into its loyalty program.
Users just had to take a picture of pizza to get points to redeem for a free pizza. But Allison isn’t just focusing on tech, he also has a big plan to revolutionize
the chain’s delivery strategy. Third-party delivery services have made it possible to deliver any kind of food that means that consumers options are virtually limitless.
Now, Domino’s is hoping that it will help the pizza chain reach 25 billion dollars in sales by 2025!!