Since then, in the midst of an improving economy, Domino’s has outpaced the market, posting quarter after quarter of healthy sales increases and massive share-price rises.ĭomino’s invented pizza delivery in the 1960s, but after decades focusing on speed of delivery, product quality suffered. It was so successful that it yielded an industry record for same-store sales gains, of 14.3% in the first quarter after the launch. Positioned in an honest, account-able way, the recipe persuaded customers to give Domino’s a second chance. To make matters worse, our stock price plummeted to an all-time low of $2.61 in November 2008.ĭrastic action was needed: launching a new pizza recipe was the only option. Leading up to the "Pizza turnaround", Domino’s had posted quarter after quarter of lacklustre sales. This led to the commoditisation of the product, in an already commoditised ind-ustry. We had also grounded our brand promise in speed, with the "30 minutes or free" campaign, a functional benefit that led to the perception that Domino’s mindlessly and robotically cranked out unappetising pizzas. To make matters worse, for decades, Domino’s had adopted the typical fast-food playbook, launching gimmicky products and limited-time offers for a short-term sales boost. The largely non-loyal customer base would decide which to choose based on the best deal, convenience and taste. All the major chains were in a battle to win the average customer’s 21 "pizza occasions" each year. Damning: pizza fans’ negative comments were featured in the ‘Pizza turnaround’ video (2009)īack in 2008, the economic downturn hit the whole quick-service restaurant (QSR) category as a whole, with many franchise-owners in the red, year after year. Domino’s willingness to change, be accountable and innovate beyond the expected justifies our "Oh yes we did" tagline every time we launch a campaign. While the "Pizza Turnaround" campaign immediately yielded record sales, the brand transformation has continued in subsequent years. It took a new recipe and radical transparency to persuade our customers to give us a second chance. In 2009, after serving the same style of pizza for 50 years, Domino’s was in trouble sales wereĭeclining, the stock price had tanked, and our customers described the pizza as tasting like cardboard. Whether it’s the food, the people or surprising innovations, Domino’s has proved that a willingness to tackle the hard issues head-on, embrace change and dream bigger can transform a brand. From a broken company to a spirit of "anything is possible". From online orders comprising less than 20% of the business, to more than 50%. From last place in consumer "taste" rankings to first from negative sales to an industry record, and 22 quarters of consecutive sales growth in the US. The Domino’s story since 2010 is one of radical transformation.
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