Domino’s Case study – History and dominance in Pizza Industry

The Pizza Industry is one of the biggest segment in the world. In Pizza Industry, there is a domination of a brand named ‘Domino’s. With over 17 000 locations globally in 90 plus countries, Domino’s has earned to be the Market leader of the Pizza Industry.

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History of Domino’s

Domino’s began with two brothers who grew up in a Roman Catholic orphanage. Their father had died, and their mother was unable to raise them on her own. As time passed, the brothers Tom and Jim Monaghan decided to launch their own business.

In 1960, they borrowed $500 and purchased Dominic’s, a pizza shop in Ypsilanti, Michigan, and the doors were opened to the public. The brothers determined from the start that their business model would be focused on delivery, which minimizes the cost of dining in and encourages them to focus solely on quality.

The brothers employed local manufacturing workers who had been laid off to deliver pizza across town. After around eight months in business, James took the decision to leave after exchanging half of the company for a Volkswagen Beetle. Tom becomes the sole proprietor of the pizza shop. The original founder went into the shop one day as Tom was preparing orders and told Tom that he could no longer can use title Dominic’s. Tom was forced to come up with a new name.

Domino's, Dominos, History of Domino's, History of Dominos, Domino's Case Study, Pizza Industry
Domino’s first ever store, named ‘Dominic’s Pizza’. before Tom name it as ‘Domino’s’

One day, a delivery driver walks in and suggests ‘Domino’s’, and the first domino store opened in 1967 in Ypsilanti, Michigan. In Burlington, the first Domino’s store outside of Michigan opens. Originally, the logo had three dots to signify the three original storefronts in 1965. Tom desired to put a dot for each new store. However, they quickly discovered that adding a dot would cost them more money, and imagine passing by a domino’s with 17 000 dots.

beginning of Delivery of Pizza

Tom wanted his customers to have hot and fresh pizza. So he looked around and contacted a business to build the modern pizza box. Tom understood over time that clients ordering pizza should not only get the finest quality, but they should also receive it promptly. To uphold the promise, Domino’s offered guaranteed pizza delivery in 30 minutes or less. Tom opened a pizza shop anywhere he could, building a network that allowed them to keep their 30-minute guarantee.

Domino’s was delivering 54 percent of all pizza orders in the United States irrespective of where the client dialed with the 30-minute guarantee. Today, Domino’s delivery men travel 10 million miles per week, which is comparable to 20 journeys to the moon and back. Tom was also known for his firmness; he once stated, “I don’t tolerate abuse from anyone if somebody refuses to pay a driver for an order.” I didn’t call the cops; instead, I went to them and claimed the amount.

By 1978, Domino’s had 200 outlets throughout the United States. Tom made his first delivery from a new store he had opened in Mount Pleasant, Michigan. The order was for Central Michigan University; less did Tom know that this delivery will introduce someone special in his life. When he arrived, the receptionist, Margie, have become his wife.

Unfortunately, as a result of their 30-minute delivery promise, their staff fatality rates increased. The 30-minute pledge was dropped in the United States, but it is still in force in many other countries.

Surpassing the boundaries – Domino’s Dominating the International

Domino’s had 1000 outlets by 1983. In Winnipeg, Canada, their first international store opened. With 2841 outlets, Domino’s became the fastest growing pizza company. Domino’s launches its 5000th outlet in 1989, and the company achieves record sales of 2.8 billion dollars in 1996. By 1997, Domino’s was opening seven stores in a single day all over the world. In 1998, domino’s founder, Tom Monaghan, announced his retirement to pursue other interests and sold the company to bain capital inc.

In 1999, Domino’s global sales surpassed $3.36 billion. Dominoes becomes a publicly traded corporation on the New York Stock Exchange in 2004. This was only the beginning of their ambition to dominate the pizza market. In 2007, they launched online and mobile ordering for customer experience, but the 2008 recession had an impact on Domino’s; not only were revenues down, but the firm was under fire for its bad cuisine and lackluster service. Domino’s shares dropped from 13.49 cents to 3.87 cents per share as the company launched advertisements promising better service in the following days.

Domino’s keeping up with the trends

The organisation realized that in order to improve service, they needed to make ordering easier for customers. Cell phone usage was skyrocketing, with 77 percent of all adults owning a cell phone or other mobile device. With mobile ordering already available, Domino’s recognized they needed to make ordering more enjoyable.

As a result, Domino’s created the Domino’s tracker in 2008, allowing consumers to check the progress of their order. With the advent of the second iPhone, teen phone use increased from 72 to 84, indicating that the world is shifting to applications. Domino’s announces a pizza ordering app for iPhone and Android customers. Domino’s understood that customers wanted to place their orders promptly. As a result, in 2013, they launched pizza profiles on, which saves customers’ information about their favourite pizza. so that they can quickly reorder their favourite pizza.

to provide its customers with even more options Domino’s debuted anywhere in 2015, allowing consumers to place orders through text, tweet, or voice ordering in 2018. Assume you are in a park, on a seashore, in a playground, or in a museum with no real address and you need pizza. With this in mind, Domino’s introduces hot spots, with over 200,000 active Domino’s hotspots countrywide. Consumers can receive delivery orders at locations that do not have physical addresses because they interact with their customers and keep an eye out for them, unlike other organization. More than 60% of Domino’s orders are now placed via digital platforms.

Domino’s Contribution for Social Cause

Domino’s, as large as they are, also aid with numerous disasters across the world. Domino’s contributed $220,000 to aid in the relief operations following the 2004 tsunami, which claimed the lives of 227 898 people. Tom has been a strong supporter of numerous catholic charities because he grew up in a Roman Catholic orphanage. Domino’s was a nationwide sponsor of Project Safe Place, a network of safe places where young people in difficulties can go to seek help, as of 1997. The example of Domino reminds us that if you keep up with trends and communicate with your clients, you can dominate the industry.

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