Editor’sSpace
The Domino Affect:
Time to Change
By now I’m sure you’ve seen the new Dom-
ino’s Pizza commercial. It centers on changes
the company has made to its product in re-
sponse to customer comments. The commer-
cial shows a focus group where people describe
Domino’s pizza crust as cardboard, its tomato
sauce as tasting like ketchup, and its cheese as
processed and tasteless.
The commercial cuts away to head chef Bran-
don Solano, who says that when he first heard
the comments it was “shocking” to him. We also
see Domino’s president Patrick Doyle, who says
the negative comments could have gotten the
company down, but they are being channeled
to “excite” and “energize” the organization.
Anybody who knows anything about quality
food knows that Domino’s pizza was simply aw-
ful. But anybody who knows anything about the
foodservice business understands that when a
company like Domino’s can build nearly 9,000
restaurants, it has done something right. The
only shocking part is how it could have been so
successful with such an inferior product.
So, what gives? Sales trends at Domino’s have
been abysmal over the last few years in a mar-
ket flooded with pizza competitors. It’s 2010
and nearly everybody has tasted really good
pizza. They know that what Domino’s was serv-
ing wasn’t even close.
I’m not writing this piece to criticize Domi-
no’s. In fact, I congratulate them for completely
trashing their product and developing a new,
6 R E S TA U R A NT H O S P I TA L I T Y F E B R UA RY 2 010
better, more competitive version. I have little
doubt that people who gave up on Domino’s
years ago will give them another chance. And
that’s my point.
Beginning on page 24, you’ll find a state of the
industry feature. After talking with numerous
industry folks, several themes developed. The
first is that most companies cut their operat-
ing costs to the bone in 2009 in response to the
recession. Any further cutting this year could
badly damage a company, so it’s time to be
creative and make positive changes to capture
customer attention.
A second theme is that customers are seeking
value more than ever before, and the Holy Grail
in 2010 is to provide that value while making a
profit. A more vital point is that price is not the
number one consideration for many custom-
ers. Clearly, Domino’s success was built upon
a price structure that lured those who prize
quantity over quality. But even the unwashed
masses are now saying that if a food product
doesn’t taste good, they don’t care how cheap
it is. And they’re saying it during a recession,
which means they know they can get a better
product at a low price.
PHOTOGRAPHY BY JOE GLICK
These are trying times, and it’s hard to win
when customers want a good product for little
money. This will be a hold-on-to-your-hat year,
and the ones who get out alive will be the ones
who make things happen. Domino’s has made
its move. What’s yours?
Michael Sanson
EDITOR-IN-CHIEF
mike.sanson@penton.com
www.restaurant-hospitality.com
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