Domino's Pizza
Encyclopedia
Domino's Pizza, Inc. is an international pizza delivery
Pizza delivery
Pizza delivery is a service in which a pizzeria delivers a pizza to a customer. Delivery is normally made with an automobile, motor scooter, or bicycle.- Ordering :...

 corporation headquartered in Ann Arbor
Ann Arbor, Michigan
Ann Arbor is a city in the U.S. state of Michigan and the county seat of Washtenaw County. The 2010 census places the population at 113,934, making it the sixth largest city in Michigan. The Ann Arbor Metropolitan Statistical Area had a population of 344,791 as of 2010...

, Michigan
Michigan
Michigan is a U.S. state located in the Great Lakes Region of the United States of America. The name Michigan is the French form of the Ojibwa word mishigamaa, meaning "large water" or "large lake"....

, United States of America. Founded in 1960, Domino's is the second-largest pizza chain in the United States and has over 9,000 corporate and franchised
Franchising
Franchising is the practice of using another firm's successful business model. The word 'franchise' is of anglo-French derivation - from franc- meaning free, and is used both as a noun and as a verb....

 stores in 60 countries and all 50 U.S. states. Domino's Pizza was sold to Bain Capital
Bain Capital
Bain Capital LLC is a Boston-based private equity firm founded in 1984 by partners from the consulting firm Bain & Company. Originally conceived as an early-stage, growth-oriented investment fund, Bain Capital today manages approximately $65 billion in assets, and its strategies include private...

 in 1998 and went public in 2004. The menu features both vegetarian and meat pizzas, chicken wings and boneless chicken, potato wedges, garlic breads and a variety of dessert items including cookies and waffles, Ben & Jerry's
Ben & Jerry's
Ben & Jerry's is an American ice cream company, a division of the British-Dutch Unilever conglomerate, that manufactures ice cream, frozen yogurt, sorbet, and ice cream novelty products, manufactured by Ben & Jerry's Homemade Holdings, Inc., headquartered in South Burlington, Vermont, United...

 ice cream and a variety of soft drinks including Coca-Cola
Coca-Cola
Coca-Cola is a carbonated soft drink sold in stores, restaurants, and vending machines in more than 200 countries. It is produced by The Coca-Cola Company of Atlanta, Georgia, and is often referred to simply as Coke...

, Fanta
Fanta
Fanta is a global brand of fruit-flavored carbonated soft drinks from the Coca-Cola Company. There are over 90 flavors worldwide. The drink debuted in Germany in 1941 and originally sold only in Europe.-History:...

, and Sprite
Sprite (soft drink)
Sprite is a transparent, lemon-lime flavored , caffeine free soft drink, produced by the Coca-Cola Company. It was introduced in the United States in 1961. This was Coke's response to the popularity of 7 Up, which had begun as "Bib-Label Lithiated Lemon-Lime Soda" in 1929...

. Domino's has restaurants in all of the world's major cities such as New York
New York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...

, London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...

 and Chicago
Chicago
Chicago is the largest city in the US state of Illinois. With nearly 2.7 million residents, it is the most populous city in the Midwestern United States and the third most populous in the US, after New York City and Los Angeles...

.

Early years

In 1960, Tom Monaghan
Tom Monaghan
Thomas Stephen "Tom" Monaghan is an entrepreneur and Catholic philanthropist and activist who founded Domino's Pizza in 1960. He owned the Detroit Tigers from 1983-1992....

 and his brother, James, purchased DomiNick's, a small pizza store in Ypsilanti
Ypsilanti, Michigan
Ypsilanti is a city in Washtenaw County in the U.S. state of Michigan. As of the 2000 census, the city population was 22,362. The city is bounded to the north by the Charter Township of Superior and on the west, south, and east by the Charter Township of Ypsilanti...

, Michigan near Eastern Michigan University
Eastern Michigan University
Eastern Michigan University is a comprehensive, co-educational public university located in Ypsilanti, Michigan. Ypsilanti is west of Detroit and eight miles east of Ann Arbor. The university was founded in 1849 as Michigan State Normal School...

. The deal was secured by a US$
United States dollar
The United States dollar , also referred to as the American dollar, is the official currency of the United States of America. It is divided into 100 smaller units called cents or pennies....

75 down payment and the brothers borrowed $900 to pay for the store. Eight months later, James traded his half of the business to Tom for a used Volkswagen Beetle
Volkswagen Beetle
The Volkswagen Type 1, widely known as the Volkswagen Beetle or Volkswagen Bug, is an economy car produced by the German auto maker Volkswagen from 1938 until 2003...

. As sole owner of the company, Monaghan renamed the business Domino's Pizza, Inc. in 1965. In 1967, the first Domino's Pizza franchise store opened in Ypsilanti. The company logo was originally planned to add a new dot with the addition of every new store, but this idea quickly faded as Domino's experienced rapid growth. The three dots represent the stores that were open at the time(1969). By 1978, the franchise opened its 200th store.

In 1975, Domino's faced a lawsuit by Amstar Corporation
Domino Foods, Inc.
Domino Foods, Inc. is a US company owned by American Sugar Refining Inc. that markets sugar through its brand portfolio: Domino®, C&H®, Florida Crystals®, and Redpath®.-History:...

, maker of Domino Sugar, alleging trademark infringement and unfair competition. On May 2, 1980, a federal appeals court found in favor of Domino's Pizza.

International expansion

On May 12, 1983, Domino's opened its first international store, in Winnipeg
Winnipeg
Winnipeg is the capital and largest city of Manitoba, Canada, and is the primary municipality of the Winnipeg Capital Region, with more than half of Manitoba's population. It is located near the longitudinal centre of North America, at the confluence of the Red and Assiniboine Rivers .The name...

, Manitoba
Manitoba
Manitoba is a Canadian prairie province with an area of . The province has over 110,000 lakes and has a largely continental climate because of its flat topography. Agriculture, mostly concentrated in the fertile southern and western parts of the province, is vital to the province's economy; other...

, Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...

. That same year, Domino's opened its 1,000th store overall, and by 1995 Domino's had 1,000 international locations. In 1997, Domino's opened its 1,500th international location, opening seven stores in one day across five continents.

Sale of company

In 1998, after 38 years of ownership, Domino's Pizza founder Tom Monaghan announced his retirement and sold 93 percent of the company to Bain Capital
Bain Capital
Bain Capital LLC is a Boston-based private equity firm founded in 1984 by partners from the consulting firm Bain & Company. Originally conceived as an early-stage, growth-oriented investment fund, Bain Capital today manages approximately $65 billion in assets, and its strategies include private...

, Inc. for about $1 billion and ceased being involved in day-to-day operations of the company. A year later, the company named David A. Brandon
David Brandon
David A. Brandon is the director of intercollegiate athletics for the University of Michigan. He was formerly chairman of the board, chief executive officer, and manager of Domino's Pizza. He is also a former regent of the University of Michigan. Brandon took over Domino's in March 1999 when...

 Chairman and Chief Executive Officer.

Current era

In 2004, after 44 years as a privately held company, an employee of Domino's Pizza rang the opening bell at the New York Stock Exchange
New York Stock Exchange
The New York Stock Exchange is a stock exchange located at 11 Wall Street in Lower Manhattan, New York City, USA. It is by far the world's largest stock exchange by market capitalization of its listed companies at 13.39 trillion as of Dec 2010...

 and the company began trading common stock on the NYSE under the ticker symbol "DPZ".

Industry trade publication Pizza Today magazine named Domino's Pizza "Chain of the Year" in 2003,2010, and 2011. In a simultaneous celebration in 2006, Domino's opened its 5,000th U.S. store in Huntley, Illinois
Huntley, Illinois
Huntley is a rapidly-growing village in McHenry and Kane Counties, Illinois. In 2008, the U.S. Census Bureau estimated the village's population to be 22,923. As of the 2000 Census, the village had a mere 5,730 people, meaning the village's population has more than tripled in eight years...

, and its 3,000th international store in Panama City, making 8,000 total stores for the system. Also that year, the Domino's Pizza store in Tallaght
Tallaght
Tallaght is the largest town, and county town, of South Dublin County, Ireland. The village area, dating from at least the 17th century, held one of the earliest settlements known in the southern part of the island, and one of medieval Ireland's more important monastic centres.Up to the 1960s...

, Dublin, Ireland, became the first in Domino's history to hit a turnover of $3 million (€2.35 million) per year. , it has 8,238 stores which totaled US$
United States dollar
The United States dollar , also referred to as the American dollar, is the official currency of the United States of America. It is divided into 100 smaller units called cents or pennies....

1.4 billion in gross income.

In 2007, Domino's introduced its Veterans, Delivering the Dream franchising programs and also rolled out its online and mobile ordering sites. In 2008, Domino's introduced the Pizza Tracker, an online application that allows customers to view the status of their order in a simulated "real time" progress bar. In addition, the first Domino's with a dining room opened in Stephenville, Texas
Stephenville, Texas
Stephenville is a city in and the county seat of Erath County, Texas, United States. The population was 14,921 at the 2000 census. Founded in 1856, it is home to Tarleton State University. Stephenville is among several communities that calls itself the "Cowboy Capital of the...

, giving the customers the option to either eat in or take their pizza home. Since 2005, the voice of Domino's Pizza's US phone ordering service 1-800-DOMINOS has been Kevin Railsback.

In a 2009 survey of consumer taste preferences among national chains by Brand Keys
Brand keys
Brand Keys is active in predictive brand equity, loyalty, and engagement metrics since 1984. A global firm headquartered in New York, NY. Brand Keys has 4 offices as well as offices in Dublin, Dubai, London, Madrid, Sydney, and Tokyo.-Company information:...

, Domino's was last — tied with Chuck E. Cheese's
Chuck E. Cheese's
Chuck E. Cheese's is a chain of family entertainment centers. Chuck E...

. In December that year, Domino's announced plans to entirely reinvent its pizza. It began a self-flogging ad campaign in which consumers were filmed criticizing the pizza's quality and chefs were shown developing the new product. The new pizza was introduced that same month, and the following year, Domino's 50th anniversary, the company acquired J. Patrick Doyle as its new CEO and experienced a historic 14.3% quarterly gain. While admitted not to endure, the success was described by Doyle as one of the largest quarterly same-store sales jumps ever recorded by a major fast-food chain.

Products

The current Domino's menu features a variety of Italian-American
Italian-American cuisine
Italian American cuisine is the cuisine of Italian American immigrants and their descendents, who have modified Italian cuisine under the influence of American culture and immigration patterns of Italians to the United States...

 entrees and side dishes. Pizza is the primary focus, with traditional, specialty and custom pizzas available in a variety of crust styles and toppings. Additional entrees include pasta
Pasta
Pasta is a staple food of traditional Italian cuisine, now of worldwide renown. It takes the form of unleavened dough, made in Italy, mostly of durum wheat , water and sometimes eggs. Pasta comes in a variety of different shapes that serve for both decoration and to act as a carrier for the...

, bread bowl
Bread bowl
A bread bowl is a round loaf of bread which has had a large portion of the middle cut out to create an edible bowl. Bread bowls can be used to serve chili, New England-style clam chowder, and other thick stews . Soups with thinner bases are not generally served in bread bowls, as the broth would...

s and oven-baked sandwich
Submarine sandwich
A submarine sandwich, also known as a sub among other names, is a sandwich that consists of a long roll of Italian or French bread, split lengthwise either into two pieces or opened in a "V" on one side, and filled with various varieties of meat, cheese, vegetables, seasonings, and sauces. The...

es. The menu offers chicken side dishes, breadsticks, as well as beverages and desserts.

From its founding until the early 1990s, the menu at Domino's Pizza was kept simple relative to other fast food restaurants, to ensure efficiency of delivery. Historically, Domino's menu consisted solely of one pizza in two sizes (12-inch and 16-inch), 11 toppings, and Coke as the only soft drink option.

The first menu expansion occurred in 1989, with the debut of Domino's deep dish, or pan pizza. Its introduction followed market research showing that 40% of American pizza customers preferred thick crusts. The new product launch cost approximately $25 million, of which $15 million was spent on new sheet metal pans with perforated bottoms. Domino's started testing extra-large size pizzas in early 1993, starting with the 30-slice, yard-long "The Dominator".

Domino's tapped into a market trend toward bite-size foods with spicy Buffalo Chicken Kickers, as an alternative to Buffalo Wings, in August 2002. The breaded, baked, white-meat fillets, similar to chicken tenders, are packaged in a custom-designed box with two types of sauce to "heat up" and "cool down" the chicken.

In August 2003, Domino's announced its first new pizza since January 2000, the Philly Cheese Steak Pizza. The product launch also marked the beginning of a partnership with the National Cattlemen's Beef Association
National Cattlemen's Beef Association
National Cattlemen's Beef Association or NCBA, an advocacy group for beef producers in the United States, reports that it works "to increase profit opportunities for cattle and beef producers by enhancing the business climate and building consumer demand."The NCBA operates the Cattle Industry...

, whose beef Check-Off logo appeared in related advertising. Domino's continued its move toward specialty pizzas in 2006, with the introduction of its "Brooklyn Style Pizza", featuring a thinner crust, cornmeal baked in to add crispness, and larger slices that could be folded in the style of traditional New York-style pizza
New York-style pizza
New York-style pizza originated in New York City in the early 1900s. It is known for its large, wide, thin and foldable shape. The traditional toppings were tomato sauce and mozzarella cheese, with any additional toppings placed with the cheese. It is traditionally hand-tossed and light on sauce...

.

In 2008, Domino's once again branched out into non-pizza fare, offering oven-baked sandwiches in four styles, intended to compete with Subway
Subway (restaurant)
Subway is an American restaurant franchise that primarily sells submarine sandwiches and salads. It is owned and operated by Doctor's Associates, Inc. . Subway is one of the fastest growing franchises in the world with 35,519 restaurants in 98 countries and territories as of October 25th, 2011...

's toasted submarine sandwich
Submarine sandwich
A submarine sandwich, also known as a sub among other names, is a sandwich that consists of a long roll of Italian or French bread, split lengthwise either into two pieces or opened in a "V" on one side, and filled with various varieties of meat, cheese, vegetables, seasonings, and sauces. The...

es. Early marketing for the sandwiches made varied references to its competition, such as offering free sandwiches to customers named "Jared," a reference to Subway's spokesman of the same name.

The company introduced its American Legends line of specialty pizzas in 2009, featuring 40% more cheese than the company's regular pizzas, along with a greater variety of toppings. That same year, Domino's began selling its BreadBowl Pasta entree, a lightly seasoned bread bowl baked with pasta inside, and Lava Crunch Cake dessert, composed of a crunchy chocolate shell filled with warm fudge. Domino's promoted the item by flying in 1,000 cakes to deliver at Hoffstadt Bluffs Visitor Center near Mount St Helens.

In 2010, the company changed its pizza recipe "from the crust up", making significant changes in the dough, sauce and cheese used in their pizzas. Their advertising campaign admitted to earlier problems with the public perception of Domino's product due to issues of taste.

Since the companies stock low in late 2009, the company's stock had grown 233 percent by late 2011. Even as the economy has suffered and unemployment has risen, Dominos has seen its sales rise dramatically through its efforts to rebrand and retool its pizza.

Corporate governance

Domino's management is led by J. Patrick Doyle, CEO from March 2010, formerly president of Domino's USA. Previous chief executive David Brandon
David Brandon
David A. Brandon is the director of intercollegiate athletics for the University of Michigan. He was formerly chairman of the board, chief executive officer, and manager of Domino's Pizza. He is also a former regent of the University of Michigan. Brandon took over Domino's in March 1999 when...

, made athletic director of the University of Michigan
University of Michigan
The University of Michigan is a public research university located in Ann Arbor, Michigan in the United States. It is the state's oldest university and the flagship campus of the University of Michigan...

 in January 2010, remains chairman. Among 11 executive vice presidents are Michael Lawton, CFO; Asi Sheikh, Team USA; Scott Hinshaw, Franchise Operations and Development; and Kenneth Rollin, General Counsel
General Counsel
A general counsel is the chief lawyer of a legal department, usually in a corporation or government department. The term is most used in the United States...

. Domino's operations are overseen by a board of directors
Board of directors
A board of directors is a body of elected or appointed members who jointly oversee the activities of a company or organization. Other names include board of governors, board of managers, board of regents, board of trustees, and board of visitors...

 led by Brandon. Other members of the board are Andrew Balson, Diana Cantor, Mark Nunnelly, Robert Rosenberg and Bud Hamilton.

Charitable activities

In 2001, Domino's launched a two-year national partnership with the Make-A-Wish Foundation of America
Make-A-Wish Foundation
The Make-A-Wish Foundation is a 501 non-profit organization founded in the United States that grants wishes to children who have life-threatening medical conditions. The charity now operates in forty-seven countries around the world through thirty-six affiliate offices.The president & CEO of this...

. That same year, the company stores in New York City
New York City
New York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...

 and Washington D.C. provided more than 12,000 pizzas to relief workers following the September 11 attacks on the World Trade Center
World Trade Center
The original World Trade Center was a complex with seven buildings featuring landmark twin towers in Lower Manhattan, New York City, United States. The complex opened on April 4, 1973, and was destroyed in 2001 during the September 11 attacks. The site is currently being rebuilt with five new...

 and The Pentagon
The Pentagon
The Pentagon is the headquarters of the United States Department of Defense, located in Arlington County, Virginia. As a symbol of the U.S. military, "the Pentagon" is often used metonymically to refer to the Department of Defense rather than the building itself.Designed by the American architect...

. Through a matching funds program, the corporation donated $350,000 to the American Red Cross
American Red Cross
The American Red Cross , also known as the American National Red Cross, is a volunteer-led, humanitarian organization that provides emergency assistance, disaster relief and education inside the United States. It is the designated U.S...

' disaster relief effort. In 2004, Domino's began its current partnership with St. Jude Children's Research Hospital
St. Jude Children's Research Hospital
St. Jude Children's Research Hospital, founded in 1962, is a leading pediatric treatment and research facility focused on children's catastrophic diseases. It is located in Memphis, Tennessee. It is a nonprofit medical corporation chartered as a 501 tax-exempt organization under IRS regulations.In...

, participating in the hospital's "Thanks and Giving" campaign since it began in 2004, raising more than $1.3 million in 2006.

Advertising and sponsorship

In the 1980s, Domino's Pizza was well known for its advertisements featuring The Noid
Noid
The Noid is an advertising character for Domino's Pizza created in the 1980s. He was a villainous red-suited character with red rabbit ears who attempted to ruin Domino's pizza but was constantly thwarted. The Noid was created in 1986 by Group 243, the advertising agency for Domino's Pizza and was...

. That concept was created by Group 243 Inc. who then hired Will Vinton Studios to produce the television commercials that they created. The catchphrase associated with the commercials was "Avoid the Noid."

Due to a glitch on the Domino's website, the company gave away nearly 11,000 free medium pizzas in March 2009. The company had planned the campaign for December 2008 but dropped the idea and never promoted it. The code was never deactivated though and resulted in the free giveaway of the pizzas across the United States after someone discovered the promotion on the website by typing in the word "bailout" as the promotion code and then shared it with others on the Internet. Domino's deactivated the code on the morning of Tuesday, March 31, 2009 and promised to reimburse store owners for the pizzas.

Domino's sponsored CART
Champ Car
Champ Car was the name for a class and specification of open wheel cars used in American Championship Car Racing for many decades, primarily for use in the Indianapolis 500 auto race...

's Doug Shierson Racing
Doug Shierson Racing
Doug Shierson Racing is a former racing team that competed in the CART Championship Car Series from 1982 to 1990. The team was sponsored by Domino's Pizza for its entire run in CART.-Early years:...

, which was driven by Arie Luyendyk
Arie Luyendyk
Arie Luyendyk, originally Arie Luijendijk is a Dutch auto racing driver, twice winner of the Indianapolis 500....

, and the team won the 1990 Indianapolis 500
1990 Indianapolis 500
The 74th Indianapolis 500 was held at Indianapolis on Sunday, May 27, 1990. Arie Luyendyk took the lead with 32 laps to go, and earned his first-ever victory in championship-level competition...

. In 2003, Domino's teamed up with NASCAR for a multi-year partnership to become the "Official Pizza of NASCAR." Domino's also sponsored Michael Waltrip Racing and driver David Reutimann
David Reutimann
Emil David Reutimann is the driver the #00 Aaron's Dream Machine/Tums/Best Western Toyota Camry for Michael Waltrip Racing in the NASCAR Sprint Cup Series...

 during the 2007 season in the NASCAR Sprint Cup Series.

Domino's Pizza was briefly seen in the 1990 film Teenage Mutant Ninja Turtles
Teenage Mutant Ninja Turtles (film)
Teenage Mutant Ninja Turtles is a 1990 American live-action film adaptation of the Teenage Mutant Ninja Turtles franchise directed by Steve Barron. The film was followed by three sequels: Teenage Mutant Ninja Turtles II: The Secret of the Ooze in 1991, Teenage Mutant Ninja Turtles III in 1993, and...

.

30-minute guarantee

Starting in 1973, Domino's Pizza had a guarantee that customers would receive their pizzas within 30 minutes of placing an order, or they would receive the pizzas free. The guarantee was reduced to $3 off in the mid 1980s. In 1992, the company settled a lawsuit brought by the family of an Indiana woman who had been killed by a Domino's delivery driver, paying the family $2.8 million. In another 1993 lawsuit, brought by a woman who was injured when a Domino's delivery driver ran a red light and collided with her vehicle, the woman was awarded nearly $80 million, but accepted a payout of $15 million. The guarantee was dropped that same year because of the "public perception of reckless driving and irresponsibility", according to Monaghan.

In December 2007, Domino's introduced a new slogan, "You Got 30 Minutes", alluding to the earlier pledge but stopping short of promising delivery in a half hour.

The company continues to offer "30 minute or Free" guarantee for orders placed in its stores in India.

International operations

Domino's Pizza is located in more than 60 countries. The rights to own, operate and franchise branches of the chain in Australia, New Zealand, France, Belgium, the Netherlands and the Principality of Monaco
Monaco
Monaco , officially the Principality of Monaco , is a sovereign city state on the French Riviera. It is bordered on three sides by its neighbour, France, and its centre is about from Italy. Its area is with a population of 35,986 as of 2011 and is the most densely populated country in the...

 are currently owned by Domino's Pizza Enterprises
Domino's Pizza Enterprises
Domino's Pizza is the largest pizza chain in Australia, and second largest in New Zealand. Domino's runs a number of stores across Australia, New Zealand, France, Belgium and The Netherlands. Approximately 70% of Domino's Australian stores are franchised, whilst the remaining are owned and run by...

, having been sold off by the parent company between 1993 and 2007. The master franchise
Master franchise
A master franchise is a person or entity who provides services to franchisees in a specified territory, typically a major market, geographical region or even one or more countries.Master franchising is a method that has been employed by most franchise systems...

s for the UK and Ireland
Republic of Ireland
Ireland , described as the Republic of Ireland , is a sovereign state in Europe occupying approximately five-sixths of the island of the same name. Its capital is Dublin. Ireland, which had a population of 4.58 million in 2011, is a constitutional republic governed as a parliamentary democracy,...

 were purchased by Domino's Pizza Group, now publicly traded as Domino's Pizza UK & IRL
Domino's Pizza UK & IRL
Domino's Pizza UK & IRL plc is a United Kingdom-based franchisee of international fast food pizza delivery chain Domino's Pizza. Through its subsidiary Domino's Pizza Group, the company holds the exclusive right to own, operate and in turn franchise branches of the chain in the United Kingdom and...

, in 1993.

External links

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