Domino's: Company Profile

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Domino's is the world's largest pizza delivery service, with a footprint that extends far beyond the US to almost 11,000 stores in 70 countries from Australia to Venezuela and Azerbaijan to Vietnam. It is the world's #2 pizza chain overall (behind Pizza Hut), but virtually all Domino's outlets are kitchen-only, offering only delivery or carry-out service, and no dine-in facilities. Domino's delivers well over 400m pizzas each year. 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. 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. Four of its biggest international franchisees are public companies in their own right. Domino's dropped the word pizza from its name in 2015 to reflect its wider menu.

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Recent stories from Adbrands Weekly Update:

Adbrands Weekly Update 24th Mar 2016: Ads Of The Week: "The Mouth Boggles". Here's a delightfully insane spot for Dominos in the UK from Iris Worldwide, using some deeply disturbing visual trickery to suggest the effect of a mouth-watering (their words, not mine) Domino's pizza on your average human. Weird but wonderful! MmmmmAhhhBlblblb....

Adbrands Weekly Update 2nd July 2015: The 2015 Cannes Lions Festival finished off on Saturday night with a big blowout of awards. The Titanium & Integrated category had two Grand Prix winners. CP&B took one of the top prizes with its emoji ordering system for Domino's, allowing registered customers to order their pizza with just a tweet of the pizza emoticon. Plenty of people signed up for the service; but it would be interesting to know how well it worked and how many people ordered their pizza this way more than once. Sharing the Grand Prix in that category was Wieden & Kennedy for its star-studded tribute to retiring NY Yankees shortstop Derek Jeter, on behalf of the Nike Jordan brand.

Adbrands Weekly Update 19th June 2014: Hackers stole personal information for almost 600,000 online customers of Domino's Pizza in France and Belgium, and demanded a ransom of E30,000 to prevent those details - names, addresses, emails and favourite toppings! - from being circulated online. Domino's apologised to its customers but has refused to pay up. "We refuse to be extorted and we are not going to play that game," said Domino's Europe chief executive Andrew Rennie. "It cannot be good for anybody if companies pay ransoms. We have to take a stance on this." Unfortunately, customers with a embarrassing predilection for pineapple chunks on their pizzas may now be outed by the hijackers.


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Background

Free for all users | see full profile for current activities: 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. The company's domino-piece logo was introduced the same year. Initially the plan was to add a dot for each new store, but that plan quickly proved impractical, and the company stopped at three dots. Monaghan established delivery as the main focus for his stores, and introduced the 30-minute delivery promise in 1967. (Later, the company changed the offer from no charge to a $3 discount on later deliveries). Monaghan also invented a corrugated cardboard pizza box, which would keep the pizzas warm during delivery.

The business expanded quickly during the 1970s, locally at first and then in neighbouring states until there were around 200 stores across the country by 1978. The pace of expansion slowed towards the end of the decade while Domino's fought a US copyright infringement lawsuit brought by the makers of Domino Sugar, then increased significantly during the 1980s after that suit was dismissed. The company opened its first international outlets, in Canada and Australia, in 1983. In 1985 alone Domino's opened almost 1,000 outlets, bringing its total to well over 2,000 stores, with new operations in the UK, Japan and other countries. A key initiative was to ensure that pizzas were delivered fresh, especially in the face of heightened competition from other pizza chains. Domino's introduced its 30-minute guaranteed delivery in 1995, followed by HeatWave hotbags in 1998 to keep the product hot right to the customer's door.

Founder Tom Monaghan retired that year, selling the business to investment group Bain Capital for around $1bn, although he retained a small stake. Since then, the chain has continued to expand its presence internationally, while also reducing the number of company-owned stores by selling outlets to managers. In 2004, Bain reduced its stake with an IPO of around 55% of the group's shares. Since 1998, Tom Monaghan has ploughed much of his fortune into Roman Catholic educational and community-oriented charities.

In 2009, Domino's public image was badly damaged by two employees who uploaded videos to YouTube in which they indulged in various unhygienic acts including sneezing on food before it was sent out to customers. They were dismissed by the company as soon as the videos were discovered, but the resulting impact on Domino's image was less easily repaired. Domino's opened its 10,000th store in 2012. See full profile for current activities


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