The Domino's Story by Marcia Layton Turner

Author:Marcia Layton Turner
Language: eng
Format: epub
Publisher: Harpercollins Leadership
Published: 2020-08-26T00:00:00+00:00

“We said our old pizza wasn’t very good. . . . This was back in 2009, 2010 when banks were going under. Consumers were just feeling like they were being lied to. It was a breath of fresh air that someone was willing to tell them the truth.”

—RUSSELL WEINER,

Domino’s Chief Operating Officer

CHAPTER THIRTEEN

CHANGING THE PIZZA RECIPE

To understand how Domino’s managed to climb out of the hole it was in back in 2007 and 2008, it’s important to study the decision to create an entirely new pizza recipe from scratch. It was a risky move, to be sure, but Brandon and Doyle were confident that they needed to focus there to regenerate sales. After all, the company’s operating processes were well honed, they had skilled talent on board, so reworking the core product was really the last piece of the puzzle to be addressed.

As Domino’s exited the Great Recession of the 2000s, its position as pizza delivery leader was holding strong. But it was losing ground on other fronts to category leaders Pizza Hut and Papa John’s, QSR reported.1 The problem, Brand Keys research firm uncovered, was that the taste of its pizza wasn’t winning any awards. Actually, as you’ve already heard, it tied (with Chuck E. Cheese) for last place for taste among major pizza chains in 2009. In fact, if subjects knew the pizza was from Domino’s, they actually reported liking it less than if they didn’t know who made it.2 Clearly, Domino’s brand image had taken a big hit. It needed a makeover. Sure, it was the leader in price and convenience, but losing the taste war put Domino’s in a precarious position long term.

Sales in 2008 were $3.037 billion and fell by the smallest margin, to $3.03 in 2009. Of greater concern was that the chain had posted seven negative quarters in a row, per researcher Technomic in Adweek.3 Domino’s stock price hit a record low of $2.83 in November 2008.4

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