Company: Domino’s Pizza
Ownership: In December 1998, investors, including funds managed by Bain Capital Inc., a leading private equity investment firm, together with management and others, acquired a 93% stake in the Company, which was formerly owned by founder, Thomas Monaghan and his family.
Description: Domino’s Pizza has been dedicated and committed to quality service, product and delivery excellence for more than 40 years, making it the world leader in pizza delivery. Domino’s is the largest privately held restaurant chain, and the eighth largest of all restaurant chains in the world.
Products: Domino’s Pizza offers Crunchy Thin Crust, Ultimate Deep Dish and Classic Hand Tossed pizzas with a number of regional toppings. Side items include Domino’s Bread Sticks, Double Cheesy Bread, CinnaStix and Buffalo Wings. Beverages consist of icy cold Coca-Cola products.
Employees: Over 120,000 associates are employed by Domino’s around the globe, 15,000 of those are corporate employees, of which 550 work at the worldwide headquarters in Ann Arbor, Michigan. Each Domino’s store employs 15-30 part-time and full-time individuals
David Brandon, chairman and chief executive officer
Jim Stansik, special assistant to the CEO
Tim Monteith, chief information officer
Hoyt Jones, executive vice president, flawless execution-franchise stores
Patrick Knotts, executive vice president, flawless execution-corporate stores
Patrick Doyle, executive vice president, Domino’s Pizza International and acting executive vice president, build the brand
Mike Soignet, executive vice president, maintain high standards
Tim McIntyre, vice president, corporate communications
Elisa D. Garcia C., executive vice president and general counsel
Patti Wilmot, executive vice president, people first
National Charity: In August 1998, Domino’s Pizza began a long-term relationship with Easter Seals, which has become the corporation’s first national charity of choice. Through this alliance, Domino’s is dedicated to helping children and adults with disabilities and their families.
Distribution: Through its network of 18 domestic distribution centers, Domino’s Pizza Distribution regularly supplies more than 4,600 pizza stores with more than 150 products, ranging from dough to pizza boxes. The number of products offered by DPD continues to expand. Similarly, the ongoing demand for new technology and basic equipment is provided by DPD’s Equipment & Supply division, which offers items such as make lines, crew uniforms and ovens as well as merchandise support for national promotional programs.
Industry: Pizza is a $30 billion per year industry. Approximately 3 billion pizzas are sold in the U.S. annually through 61,269 pizzerias. Each man, woman and child in America eats an average of 46 slices (23 pounds) of pizza a year. Pepperoni is America’s favorite topping (36% of all pizza orders); approximately 251,770,000 pounds are consumed each year.
Inovations: Domino’s HeatWave hot bags were introduced in 1998. Each heated hot bag contains a patented heating mechanism warmed via electricity. Once unplugged, this technology keeps the pizza oven-hot during a normal delivery. The outer material of the bag is made with water-repellent nylon rather than the vinyl material previously used. Inside the bag is 3M Thinsulate insulation, which eliminates unwanted moisture, keeping the pizzas both hot and crisp.
To allow Domino’s stores to concentrate on making and delivering pizzas, Domino’s developed a central commissary system. This relieves stores from long hours making dough, grating cheese and preparing toppings. Today, Domino’s Pizza Distribution provides high quality dough and ingredients nationwide, keeping the company’s pizza consistently delicious. Other pizza and fast food companies in the U.S have adopted this same system.
Fresh and delicious pizza has always been a priority at Domino’s Pizza. Domino’s was the first to use a fiberglass tray for dough, which simplified dough handling and ensured better preservation.
Domino’s was the innovator behind the sturdy, corrugated pizza box, which keeps moisture from weakening the box, while preventing cheese from sticking to the top during delivery.
A delicious, crisp crust is one of the most important parts of the pizza. In search of the perfect crust, Domino’s developed the pizza screen, a mesh tray that helps cook pizza crust more evenly than a tray made of wood or stainless steel.
In 1960 Tom Monaghan and brother James purchase “DomiNick’s,” a pizza store in Ypsilanti, Michigan. Monaghan borrowed $500 to buy the store. Then in 1961 brother James trades his half of the business to Tom for a Volkswagen Beetle. By 1965 Tom Monaghan is sole owner of company, and renames the business “Domino’s Pizza, Inc.”Next Tom opens the first Domino’s Pizza franchise store opens in Ypsilanti, Michigan in 1967. Then in 1968 the company headquarters and commissary are destroyed by fire, also the first Domino’s store outside of Michigan opens in Burlington, Vermont. Then in 1975 Amstar Corp., maker of Domino Sugar, files a trademark infringement lawsuit against Domino’s Pizza and then in 1978 the 200th Domino’s pizza store opens.
Now it is 1980 and a Federal court rules Domino’s Pizza did not infringe on the Domino Sugar trademark and Tom gets to keep his trademark. I n 1983 Domino’s first international store opens in Winnipeg, Canada. The 1,000th Domino’s store opens. By 1984 ground is broken for new headquarters, Domino’s Farms, in Ann Arbor, Michigan. Then in 1985 Domino’s opens a remarkable 954 units, for a total of 2,841, making Domino’s the fastest-growing pizza company in the country. Then Tom decides he needs to try something new so in 1989 he decides to introduce the Pan Pizza, the company’s first new product. Domino’s opens its 5,000th store.
In 1990 Domino’s Pizza signs its 1,000th franchise. In 1992 Domino’s rolls out bread sticks, the company’s first national non-pizza menu item. In 1993 the new Crunchy Thin Crust pizza is rolled out nation-wide. The Company discontinues the 30-minute guarantee and re-emphasizes the Total Satisfaction Guarantee: If for any reason you are dissatisfied with your Domino’s Pizza dining experience, we will re-make your pizza or refund your money. In 1994 tom has a big because Buffalo Wings are rolled out in all U.S. stores, the first Domino’s opens in Eastern Europe in Warsaw, Poland and the first agreement to develop Domino’s Pizza in an African country was signed by Specialized Catering Services, Inc.In 1995 Domino’s Pizza International division opens its 1000th store. First store opens on African continent, in Cairo, Egypt. Another big year for the company is 1996 when Domino’s launches its web site on the Internet (www.dominos.com). Domino’s rolls out flavored crusts, for limited time only promotions, nationally for the first time in company history. The company reaches record sales of $2.8 billion system-wide in 1996. In 1997 Domino’s Pizza opened its 1,500th store outside the United States, opening seven stores in 1 day on 5 continents consecutively. Domino’s Pizza launched a campaign to update the company logo and store interior with brighter colors and a newer look. In 1998 Domino’s launches another industry innovation, Domino’s HeatWave, a hot bag using patented technology that keeps pizza oven-hot to the customer’s door. Domino’s Pizza opens 6000th store in San Francisco, California in April. Domino’s Pizza founder, Tom Monaghan, announces retirement and sells 93% of Company to Bain Capital, Inc.In 1999 David Brandon is named Chairman and Chief Executive Officer of Domino’s Pizza. Domino’s Pizza announces record results for 1999. Worldwide sales exceed $3.36 billion. Revenues increased 4.4% over 1998.Now this brings us to the year 2000 where Domino’s Pizza International opens its 2000th store outside the United States. Domino’s Pizza celebrates 40 years of delivering pizza and innovation to homes around the world. During the past four decades, Domino’s has paved the way for businesses involved in food delivery, employing practices that have set the standard in the industry. Domino’s Pizza announces record results for 2000. Worldwide sales exceed $3.54 billion. Revenues increased 5.3% over 1999.
Since 1960, Domino’s Pizza has been committed to providing our customers with the best-tasting, highest-quality pizza, using only the finest ingredients, and delivering it directly to their door. That is what made us the world leader in pizza delivery. We continue to focus on our Vision: Exceptional People on a mission to be the best pizza delivery company in the world. (Domino’s)
Good pizza. It’s our mission. And while it may seem like a simple one, the lengths we’ll undertake to fulfill it are anything but. We hand-stretch our crust for maximum flavor. We pioneered the Domino’s HeatWave? bag so our customer’s pizza is always delivered hot. And we use only the freshest, highest quality ingredients. (Domino’s)
But at Domino’s, we’re not only dedicated to quality service, product and delivery; we’re dedicated to our staff. Nearly all Domino’s Pizza franchise owners started out as Domino’s store employees. With focused vision, hard work, and at least one year’s service as store manager, you can have the opportunity to make the leap into franchising with one of the most innovative and exciting companies in the fast food industry Founded in 1960, Domino’s makes and delivers nearly 6 million pizzas a week in over 60 countries around the world. Domino’s has more than 6,000 stores (85% of which are owned by franchisees) with 1999 worldwide sales of more than $3.3 billion.
As a franchisee, you’ll have a positive influence on people lives and the community you serve. But owning a Domino’s Pizza store isn’t for everyone. It’s a lot of hard work. It is for the strong, determined individual who understands our mission and knows what it takes to make it come true. (Domino’s)
Domino’s Pizza, founded in 1960, is the recognized world leader in pizza delivery. Domino’s Pizza operates a network of company-owned and franchise-owned stores in the United States and international markets. But Domino’s isn’t just about delivering; it’s also about giving back to the community. Domino’s Pizza believes that an essential component of its corporate responsibility is to provide support to charitable organizations that benefit the communities where our employees and customers work and live. Headquartered in Ann Arbor, Michigan, Domino’s is committed to supporting initiatives and causes in its hometown while also participating in national programs that align with our vision, guiding principles and strategic focus. (Domino’s)
In February 2001, Domino’s Pizza announced an exclusive national partnership with the Make-A-Wish Foundation. Domino’s Pizza has made a corporate decision to devote our philanthropic resources exclusively to the Make-A-Wish Foundation. Domino’s has made an ongoing commitment to Make-A-Wish to deliver wishes to children with life threatening illnesses and to assist Make-a-Wish with their benevolent volunteer efforts through heightened awareness and direct contributions. The Make-A-Wish Foundation grants the wishes of children with life-threatening illnesses to enrich the human experience with hope, strength and joy. Make-A-Wish is the largest wish-granting organization in the world, with 81 chapters in the US and 22 international affiliates on five continents. Since its founding in 1980, Make-A-Wish has granted a wish to every qualified child referred more than 83,000 wishes to children around the world. Wishes are granted through private donors and more than 20,000 volunteers worldwide. (Domino’s)
In addition to being civic-minded, Domino’s Pizza is also concerned about its team members’ needs. In 1986, Domino’s Pizza Partners Foundation was established to assist employees in time of special need or tragedy as a result of natural disasters, unexpected afflictions, on-the-job accidents, and other emergencies. The Foundation’s primary support comes from voluntary employee payroll deductions, company functions and special events. Since its inception, Domino’s Pizza Partners Foundations has helped thousands of Domino’s Pizza employees and their families with financial, emotional, intermediary and advisory assistance. (Domino’s)
Domino’s Pizza has a highly centralized when it comes to what the franchises will sell and how they will sell it. All the decisions concerning food products and ingredients and what new products will be offered all come from top management and the stores have to follow this structure rigorously. Now on the other hand when it comes to training of the employees things are quite different. At Domino’s Pizza, 85 percent of a non-supervisory employee’s training occurs on the job and is proved by the store manager or franchise owner. Each employee is trained to fill most of the shop’s five jobs, (order taker, pizza maker, oven tender, router and driver), which helps during rush hours when a crewmember does not appear for work. Performance standards are demanding; the order taker must answer the call within three rings and take the order within 45 seconds. The pizza maker must make the pizza and place it in the oven within one minute. The oven tender must take one pizza out while putting another I within 5 seconds and cut and box the pizza by the count of 15.
Although the bulk of training is on the job far away from corporate headquarters, Domino’s corporate training staff maintains some control over training by providing a variety of training aids. The staff makes available to shop management 14 videotapes on such tasks as delivery, dough management, image, and pizza making. Each shop also displays corporate-produced training posters with job hints and reminders throughout the work place. Store managers are trained by a six-week course, typically a six-month MIT program that includes coursework in pizza dough management, people management, cost management, and how to conduct on the job training of hourly employees. Manager trainees progress through five levels of training with higher performance requirements and more responsibilities at each level. On the job training is an important part of the training program.
Many franchise owned and all company owned stores send management trainees to the regional training center for classes taught by corporate trainers; however management training often is decentralized, with franchise owners conducting the MIT courses themselves. Franchise owners must be certified to conduct the formal courses for their manager trainees. The certification process requires that the owner complete a “Training Dynamics” course on how to teach manger trainees; observe certified teachers training the MIT series of course; and then co-teach the series with a regional trainer, who must approve the franchisee’s performance. () The quality of training provided by the franchise is enhanced by the owners substantial in store management experience. With all of these different ways of training in the end it is still a decentralized structure.
Domino’s pizza is having a little problem with their turnover rate, which is now in the vicinity of 300 t0 400 percent with employee but a lot less managers. Therefore managers do all they can do to keep there young employees happy, one of the reasons the turnover rate is so high is because of the age of the average employee is 18 to 21. The culture that surrounds Domino’s is a young one with open minds for new ideas; it also is one for caring and giving for and to the community. This culture was first started by Tom Monagham in 1960 and is now carried on by CEO David Brandon.
Technology has played a major role in Domino’s since the beginning, with help of computers so that your address can be pulled by just the use of a telephone number, the caller id system which is now linked to the computer so address is automatically pulled up when you call in and the heatwave bag which allows the pizza to be hotter when it arrives at your door. All of these things have allowed Dominos to adapt to the times and keep it a strong running company. Also there new ideas on food products and menu items have also allowed them to stay head of the game making them a top competitor in there market. The efficiency with which Dominos run is remarkable in the aspect of time but if you look at there turnover rate it is something that might need some work, however dealing with people of that age group it is hard to get anyone to commit to delivering pizzas for life.
In conclusion Dominos is a company that started in 1960 with a single store and went public and now has stores all over the world. This once little pizza shop is now global and has met up to all the challenges that face a company when it’s growing stages. The culture is one that stood the test of time so far and has a great look for the future. With all of this in mind Domino’s Pizza is a company that we will see for along time into the future.
Domino’s Company History. http://www.dominos.com/About/CompanyHistory.cfm
Domino’s Company Profile. http://www.dominos.com/About/CompanyProfile.cfm
Domino’s Corporate Giving. http://www.dominos.com/About/corp_giving.cfm
Domino’s Vision. http://www.dominos.com/Franchise/Index.cfm
Domino’s Mission. http://www.dominos.com/About/quality.cfm