Domino’s Pizza Earnings – How Are They Doing It?

It’s not easy being a business owner, especially when you are the CEO of a huge franchise with over 10,000 locations.  One of the big names in the earnings world currently is Domino’s Pizza with a 2015 4th quarter report of 10% growth in the U.S. The stock soared 12% on the news to an all-time high and is up 18% so far in 2016.

Their international growth has also been part of the story. When they opened their 10,000th franchise, it was not in the U.S. but a franchisee-owned store in Istanbul, Turkey. In mid-2015, the growth overseas was averaging 5.5%, which is more than many companies can boast.


So what changed to improve Domino’s Pizza Earnings?  Well first of all, they hired a CEO in 2010 named J. Patrick Doyle who has been very progressive in leading the company into the digital age.  He also has expanded the menu, modernized their stores, and broadened their reach internationally.

The capability to order online and mobile as well as growth overseas appear to be the major keys to their popularity increase. They are the second most popular pizza chain, but are breathing down the neck of first place Pizza Hut. This 2013 article from Forbes Magazine in highlights the main reasons behind Domino’s surging success.

Domino’s Global Growth Feeds Pizza Chain’s Rising Success

Dale Buss

Domino’s has been fervent about working with franchisees to fuel growth; the company owns only about 10 percent of the Domino’s in the U.S. and not a single one outside the country.

“Local knowledge and ownership are critical to our success overseas,” Doyle explained. And Domino’s stores are much more affordable around the world than most other fast-food franchises, he said, in part because the business is based on delivery and not on sit-down dining, so the outlets tend to be small and simple.

The typical Domino’s franchise costs only about $200,000 to establish, Doyle said, “and most people actually can manage to scrape that amount together.” As a result, more than 90 percent of Domino’s franchisees began in the business as Domino’s delivery drivers.

Growth in online and mobile ordering comprises the other most significant factor in Domino’s brightening prospects these days. About 58 percent of Domino’s orders in the United Kingdom now are digital, and about 40 percent in the United States. That’s why the largest group of employees at Domino’s headquarters in the Domino’s Farms business park in Ann Arbor, about one-third of the company’s 500 home-office employees, is the information-technology department.

Doyle explained that online and mobile ordering is a win for consumers and for the company.Dominos Pizza Logo

“It’s a better customer experience,” he said. “Online is where people are and want to be anyway. They’ve got the whole menu in front of them. They can take their time in ordering without one of our guys on the other end of the phone line maybe sounding impatient. And the accuracy of the orders is higher.

“So customer satisfaction is significantly higher, and not just about their preference for a digital experience: They believe the pizza tastes better when they get it, too! In other words, people are so much happier about digital ordering that it crosses every part of their experience with us.”

To read more:

There is a lot of competition in the U.S. pizza industry and even thought the economy is still dragging, pizza restaurant sales are growing. All across the country, the market is pretty saturated with pizza places. In the small town I live in of around 10,000 people, there are six pizza eateries.  As a whole, the state of Colorado averages only 2.02 pizza stores per 10,000 people, so my town must be pizza-loving heaven.

Restaurants in general are the 2nd largest private sector employer and with the slow economy are still showing moderate growth.  The trend toward ordering on the move is huge in this industry, so many food companies are providing this service.  In one study, research by eMarketers showed that well over half of the participants use mobile apps for viewing restaurants, the menu prices, and hours of operation and location.

The following article on LinkedIn discusses the Automated Digital App for ordering at restaurants that has changed from being an extravagance to a fundamental part of the system.

Restaurant Industry Goes High-Tech with Digital Ordering and Payment Systems

By Aditi Sharma

There is no denying the fact that with the implementation of automatic Digital Restaurant Menu, Quick Service Restaurant Industry is on the rise. It is the provider of innovative and unique Tablet based Restaurant Solutions that can definitely improve the services of the establishment. This sophisticated Digital Menu App makes it simple and quick for restaurateurs to display the specialties on the menu.  The operational benefit of Digital Menu inside the premise of any restaurants or hotels is now moving from a luxury to a necessity.Mobile Apps

Automated Digital App provides to diners experience a Digital Food Ordering system. This advanced system allows diners to quickly place order directly from the tab. One can now offer to guests view high-definition images of each meal that helps diners know what to choose from the menu easily. Additional items can be ordered to the kitchen staffs quickly without the need to wait for waiters.

The integration of Digital Menu into your restaurant also facilitates guests to pay the bill within less time. Now diners can submit the right bill orders from the tablet with available payment options. Thus, with Digital Ordering and Payment Systems, restaurateurs can gain maximum benefits to its business. It can increase the revenue of business through its uniquely designed quick restaurant services.

To read more:

The following article Domino’s Pizza Earnings – How Are They Doing It? is courtesy of


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