COMPANY PROFILE -Domino's Pizza
Business Sector :Restaurants
Operating Geography :United States, North America, Global
About Domino's Pizza :
Founded in 1960 by Monaghan brothers Tom and James, when they purchased an old restaurant in Ypsilanti, Michigan, United States, it was initially named DomiNick’s. The company operates a network of franchise owned Domino’s pizza stores across the globe that has both delivery and carryout business segments. In 1983, Domino’s opened its first international store in Winnipeg, Canada. It has grown into a global enterprise with over 17,600 stores in more than 90 markets as of 2023. In 2004, Domino’s Pizza, Inc. became a publicly traded company at New York Stock Exchange (NYSE). With prime focus on pizza delivery, the company’s business model feeds on quality food at competitive price, with easy ordering access and efficient service aided by technology innovations. Domino’s sells 3 million pizzas on an average, globally. Initially, Domino’s only offered two sizes of pizza and one drink for around 30 years. It now offers varying crust types and sizes along with a long list of side orders, desserts and beverages. Their pizza toppings vary according to country and culture and often feature regional specialty items.
The USP of Domino’s Pizza lies in it being the world leader in global QSR pizza, with 15% market share in global QSR pizza market. It has surpassed its largest competitor Pizza Hut with highest global retail sales. Its mission statement reads ‘To be number one’.
Domino's Pizza Revenue :
US$ 4.418 billion – FY ended 30th June 2022 (YoY growth of 1.78%)
US$ 4.357 billion – FY ended 30th June 2021
Competitive Analysis of Domino's Pizza
The SWOT analysis for Domino's Pizza is presented below
| Strengths | Weaknesses |
1. Strong franchise business model
2. Strong brand name in the QSR industry
3. Continuous product innovation led to company’s growth
4. Established technological innovation and capability
5. Developed operational efficiencies over the years
| 1. Short term contracts with suppliers
2. Failure of business in Italy
3. Subject to a number of fines for business practices
|
| Opportunities | Threats |
1. Strong growth in Quick-Service Restaurant (QSR) pizza category
2. Cut delivery times by adding more locations
3. Geographic expansion by scaling store count
4. Expanding into new concept store
| 1. Covid 19 pandemic adversely affecting the financial conditions
2. Labor shortage and increase in other cost are affecting the profits
3. Product contamination or food tampering poses a great threat to the business
4. Increase in food costs due to inflation
|
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Detailed SWOT Analysis of Domino's Pizza
Strength
1. Strong franchise business model: Domino’s runs on a 100% Franchise model Internationally and 95% in the United States. The stores outside the U.S. are operated by master franchises with distribution rights for the entire region or country. With strong unit level economics, franchise profitability is at the center of everything they do. Over the years they have developed a cost-efficient store model with moderate capital requirements. Their focus is on the carry out and delivery business rather than the dine-in experience, thus making the stores generally smaller and less expensive to build. This combined with strong sales volume has led to strong store-level economies of scale, making Domino’s an attractive business opportunity across the globe. Same store sales increased by 3.5% in 2021 in the U.S. stores and increased by 11.7% in 2021 in international stores. They have strong International Franchise partners like Jubilant FoodWorks Limited, Domino’s Pizza Group PLC and Alsea SAB de CV that operate over 1000 stores in South Asia, UK and Mexico respectively. The franchise model has produced strong and consistent earnings for Domino’s through royalty payments.
2. Strong brand name in the QSR Industry: Domino’s is the largest pizza company in the world based on global retail sales. Consumers associate the brand with timely delivery, quality food at affordable price. They are recognized as world leaders in pizza delivery. Their scale and market coverage ensures timely delivery. They have provided unmatched value proposition for over a decade. Data driven consumer behavior analysis has helped Domino’s to gain over 20 million loyalty users. They reinforce their brand with best-in-class advertisements through various media channels. In 2010, the brand was exposed to harshest critics of the taste of their pizza. Since then, the company has rebranded itself, driving inspiration from the critics. Bold, transparent, uncommon honesty in the marketing campaigns has built trust in their brand, telling consumers that they listen to their negative feedback and they aren’t just a pizza delivery company, the product also matters.
The remaining section under “Strength” is available only in the 'Complete Report' on purchase.
Weakness
This section is available only in the 'Complete Report' on purchase.
Opportunity
This section is available only in the 'Complete Report' on purchase.
Threat
This section is available only in the 'Complete Report' on purchase.
The PESTLE/PESTEL analysis of Domino's Pizza is presented below:
| Political | Economical |
1. Increasing political lobbying expenditure
2. Impact of Brexit on the European business
| 1. Adverse global economic conditions
2. Impact of fluctuations in exchange rate on bottom-line
|
| Social | Technological |
1. Consumer focus on food safety
2. Delivery takes a hit as Americans cook more at home
| 1. Adaptation of new technology and alternate delivery methods
2. Leveraging digital and social media marketing
3. Cyber-attack may impact the operations of the company
|
| Legal | Environmental |
1. Risk of Litigation in the QSR Industry
2. Complying with government regulations and requirements
| 1. Reducing the carbon footprint
2. Deployment of electric vehicles for delivery to promote sustainability
|
On purchase the Domino’s Pizza SWOT and PESTLE Analysis PDF report will reach you within minutes. At rare times, a slight delay not exceeding 1 hour might be caused.
Detailed Pestle Analysis of Domino's Pizza
Political
This section is available only in the 'Complete Report' on purchase.
Economic
This section is available only in the 'Complete Report' on purchase.
Social
1. Consumer focus on food safety: In the prevailing times of pandemic, the risk of spreading the virus can cause consumers to avoid consuming outside. Even if they consume outside food, they might prefer foods that are perceived as healthier. Since, Domino’s is primarily dependent on a single product, if consumer demand for pizza should decrease their business and operating results would be harmed. Linkage to instances of food-borne illness or food safety issues involving restaurants or suppliers or distributors could adversely affect their operations. Moreover, these safety issues could also adversely affect the price and availability of ingredients which could result in disruptions in supply chain and/or lower profit margins. But dominos is known for its leading food safety track record, and their comprehensive safety program which ensures full efficiency in identifying issues and improving it. They have earned five-star certification and certification by domino’s pizza international.
The remaining section under “Social” is available only in the 'Complete Report' on purchase.
Technological
This section is available only in the 'Complete Report' on purchase.
Legal
This section is available only in the 'Complete Report' on purchase.
Environmental
This section is available only in the 'Complete Report' on purchase.
On purchase the Domino’s Pizza SWOT and PESTLE Analysis PDF report will reach you within minutes. At rare times, a slight delay not exceeding 1 hour might be caused.
TABLE OF CONTENTS
DELIVERY AND FORMAT
WHY CHOOSE US?
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References used in Domino's Pizza SWOT & PESTLE Analysis Report
1. Annual Report of Domino's Pizza - https://stocklight.com/stocks/us/accommodation-and-food-services/nyse-dpz/dominos-pizza/annual-reports/nyse-dpz-2021-10K-21676433.pdf
2. Arrivederci, Domino's Pizza to leave Italy after it fails to win over local customers; netizens cheer exit - https://www.wionews.com/trending/arrivederci-dominos-pizza-to-leave-italy-after-it-fails-to-win-over-local-customers-netizens-cheer-exit-575019
3. Domino's pulls out of Italy, the country that invented pizza - https://economictimes.indiatimes.com/news/international/world-news/dominos-pulls-out-of-italy-the-country-that-invented-pizza-/articleshow/98955072.cms?from=mdr
4. Domino's Pizza fined $523,000 for unfair biz practice - https://www.dailyexcelsior.com/dominos-pizza-fined-523000-for-unfair-biz-practice/
The detailed complete set of references are available on request in the 'Complete report' on purchase.
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Domino's Pizza SWOT and PESTLE analysis has been conducted by Shreya Luthra and reviewed by senior analysts from Barakaat Consulting.
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