BACKGROUND

Domino’s Pizza is the second largest franchised pizza chain and the undisputed pizza
delivery expert. It started when Tom and James Monaghan bought a small Michigan
Pizzeria called Dominick’s. Since 1960, Domino’s Pizza has successfully expanded
from 3 outlets in the United States to more than 10,300 stores operating in seventy
countries. Domino’s has four business segments namely; domestic company-owned
stores, domestic franchise stores, domestic supply chain, and international. The 96
percent of Domino’s stores are owned by franchisees. It maintains overall control on
the sourcing and supplying of raw materials to the master franchises and enforces
quality of the service and product sold. The main competitors of Domino’s are Pizza
Hut, Papa John’s, Little Caesars and other local pizza stores. In addition to the three
main rivals, other substitutes exists to compete with Domino’s like KFC.