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Domino's is the world's largest pizza delivery service, with a footprint that now extends far beyond the US to over 18,848 stores in more than 90 countries by the end of 2021, stretching from Australia to Venezuela and Azerbaijan to Vietnam. The US is home to just over a third of outlets. The next biggest markets by stores are India and the UK, both with 1,300 and 1,100 outlets respectively, followed by Mexico, Japan, Australia, Turkey and Canada. Global system sales were $16.1bn in 2020, split more or less evenly between the US and international markets. It became the world's #1 pizza chain overall for the first time in 2017, overtaking long-time champion Pizza Hut, but virtually all Domino's outlets are kitchen-only, offering only delivery or carry-out service, and no dine-in facilities. The company also refuses to work with third-party delivery companies because of the commission they charge. Almost all outlets are franchised, through a network of master franchise operators. Five of its biggest international franchisees are public companies in their own right, including Domino's Pizza Enterprises (which covers nine countries including Australia, France, Japan and the Netherlands) and Dominos Pizza Group (the UK, Ireland and Germany). After several years of flat performance in the core US market, sales and profits have grown sharply since 2012, largely at the expense of arch-rival Pizza Hut as well as other quickserve operators. A key factor has been heavy investment in technological innovation, especially digital ordering services, including one that allows customers to order using pizza emojis in a text message. It was the first company to begin testing self-driving vehicle delivery in the US in 2017 in a partnership with Ford. This has been accompanied by strong international growth, although the principal benefits of that expansion is derived by Domino's franchise partners rather than the company itself. Domino's dropped the word pizza from its name in 2015 to reflect its wider menu. Ritch Allison succeeded long-serving leader Patrick Doyle as CEO at the end of 2017. He will himself step down in 2022 to be replaced by Russell Weiner. Company revenues, mostly generated by royalties and fees from franchisees, have continued to grow steadily, reaching a best-ever $4.4bn in 2021 - the pandemic helped to power a sharp increase in 2020 - with net income of $510m, also a company record. Domino's is largely the work of one man, orphan and college dropout Tom Monaghan, who with his brother James purchased DomiNick's, a small pizza store in Ypsilanti, Michigan, in 1960. He changed its name to Domino's in 1965, and set up his first franchise two years later on the other side of town. He sold the business to private equity in 1998 for $1bn; it went public six years later.
Capsule checked 23rd November 2021
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Who are the competitors of Domino's? Domino's main competitors are Pizza Hut worldwide, and Papa John's and Little Caesars in the US, as well as a wide variety of other national or regional brands. In the US, Domino's had almost 28% market share in 2019 to 23% for Pizza Hut, 16% for Little Caesars and 12% for Papa John's. See Restaurants Sector index for other companies
Historical profile information for Domino's
Marketer Moves 2nd Mar 2022: New CEO at Domino's. See Marketer Moves (members only).
Marketer Moves 6th Jul 2021: New CMO at Domino's Australia & New Zealand. See Marketer Moves (members only).
Adbrands Daily Update 2nd Nov 2020: In a crushing blow to both Crispin Porter & Bogusky and its parent company MDC Partners, the former's most high profile client has pulled its account after 13 years. Pizza chain Domino's is to transfer its business to Work In Progress, an independent shop launched four years ago by six former CPB executives, several of whom had previously worked on the Domino's account. The killer blow is that the move was prompted not by the quality of CPB's creative but its position within a holding company. "I really feel that the independent agency model gives us more flexibility and less distractions," Domino's CMO Art D'Elia told AdAge. Coincidentally, Work In Progress is also the agency for another specialist fast-food delivery service, Jimmy John's.
Adbrands Daily Update 29th Oct 2018: "JOMO". Forget the fear of missing out; celebrate the joy of missing out instead. Recent work for Domino's in the UK has been a bit hit and miss, we think. But this latest from VCCP is a definite hit. Now that Domino's has finally accepted being the Official Food of Staying In, rather than all those other non-events, it can settle down to a razor-sharp dissection of all the not-much-fun you could be having if you went out instead. The individual vignettes are spot-on, each the epitome of a crap time out. How much better to indulge in a bit of JOMO.
Adbrands Weekly Update 22nd Feb 2018: Pizza Hut was overtaken for the first time in both global and US sales by arch-rival Domino's, despite a slow-down in the latter's same-store growth in the final quarter. Domino's had global system sales of over $12.2bn for 2017, including $5.9bn in the US. Pizza Hut posted $12.0bn worldwide and $5.5bn in the US. In a separate development, Domino's could soon be a target for Burger King parent Restaurant Brands International, which has been steadily adding to its foodservice portfolio. Pizza is one sector where it doesn't yet have a presence. According to Latin American business publication Brazil Journal, which is close to RBI's private equity owner 3G Capital, a bid could be in the offing. BJ founder Geraldo Samor writes "While looking at potential acquisition targets, RBI also considered Yum Brands, but Domino's - besides being a smaller, more digestible target - carries an additional appeal: in recent years it has dramatically innovated its business model, embracing technology like no other company in the industry."
Adbrands Weekly Update 11th Jan 2018: Domino's CEO Patrick Doyle will step down next summer after eight years in that role. Richard Allison, currently international president, will step up to the top job. US pres Russell Weiner moves up to COO & president, Americas.
Adbrands Weekly Update 21st Dec 2017: Domino's promoted US CMO Joe Jordan to a new role as EVP, international, overseeing the pizza company's global presence. Marketing will now be led by Art D'Elia, who joins from Danone in the role of SVP & chief brand & innovation officer.
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