In 1960, brothers Tom and James Monaghan purchased Dominick’s pizza

store in Ypsilanti, Michigan which was later renamed to Domino’s.

Domino’s first International Franchise was granted in 1983 for a store in

Winnipeg, Manitoba, Cannada.

OVERVIEW Domino’s is the world’s second largest pizza company and the largest
pizza delivery quick-serve restaurant chain.

Domino’s uses the franchisee model.

In US, there are 1150 franchisees that collectively own and operate 4475
store.
OVERVIEW

Cost-effective business
model with low capital Average investment Domino’s franchisee Delivery radius
requirement, focused $150,000 - was granted a based on ability to
menu of affordable pizza
& interior specially $250,000. (Relatively specified delivery delivery in 10
designed to support low in QSR Segment) radius. minutes or less.
delivery and carryout

The franchisee
Stores were small,
agreement is for 10 Average franchisee
approximately 1,200
years which can be owned 3-4 stores.
to 1,500 sq. ft.
extend.
 • A Master franchisee is granted with exclusive
rights for a country.
• The master franchisee can sub-franchise the
brand.
• Brand protection through safety audits and
OVERVIEW enforcement of a supplier approval process.
• Allowed for special toppings and pizza designed
to meet local tastes and food customs.
• Master franchisee terms last for 10-20 years.
• In 2011, 45% of Domino’s international
stores were operated by 4 master franchisees.
 Belt Driven Pizza: Which had one temperature setting
and a conveyor belt that moved items through the
oven resulting in consistent and effortless baking.

Spoodle: Cross between spoon and ladle to help

reduce the time it took to sauce the pizza

INNOVATI
ON
Pizza Screens: Replaced wooden and stainless-steel
pizza cooking trays with pizza screens that allowed for
more even baking..

Heat Wave Electrical deliver bag: To keep pizza hot

during Transit.

The Make Line Station: Assembly line for pizza to

support speedy pizza making.
How a domino’s outlet work

ORDER ASSEMBLY COOKING PACKING SALES

PLACEMENT LINE
 1. Facilities :​
• Supply chain consist of 19 facilities: 16 were regional dough
manufacturing and supply  chain centres, an
Equipment and supply distribution centre, a Fresh produce

Q1. How Does

facility  and a pressed product plant.​
• SCC manufactured daily fresh dough and served 300 stores

Domino’s supply
within one day delivery radius. Stores placed dough orders and
other supplies via Pulse for SCC began start in manufacturing​

chain services 2. Inventory:​

model support its • Raw materials consist of more than 240 individual products.

Some of the them (dough)  are produced according to

brand and its

forecast. Others are stored in the warehouse and are  being
replenished from time to time.​

overall strategy? 3. Transportation:​

• Domino’s use 200 leased tractor-trailers to supply the raw
materials to the various stores.  Usually delivered in the
night to minimize disruptions and to ensure on-time delivery.
 • Domino’s Pizza apparently practiced Vertical integrated
supply chain model in it system. The benefit of VIS are it
Q2. Does controls the whole system and coordinate efficiently. The
main advantage of the vertical integration is the increased

Domino’s supply
control over the value chain
• Each SCC manufactured fresh dough on daily basis and
chain services served about 300 stores located within a one-day delivery
radius. It allow stores to consistently produce menu items

model provide a that meet the Domino’s standard and deliver those items
in the fast, efficient manner that is required for success in
the pizza delivery. Thus the system allow store managers
competitive to focus on the quality and consistency of menu items and
customer service and save time. 
advantage? How?  • By selling directly to end buyers, manufacturers can
"eliminate the middleman," removing one or more steps
of mark-ups along the way. 
 • SCCs is using forecasting tools which its function is to tallied
Q2. DOES total product sales and raw ingredients sales that made to
Dominos franchisees, and the information is then used by a

DOMINO’S
group of team members at the World Resource Center to do
centralized replenishment of all 16 SCCs in the system.

SUPPLY CHAIN • Apart from that, with the implementation of the company’s
Pulse point- of-sale computer system which designed for taking
customer orders, submitting store orders to their designated
SERVICES SCC as well as to connect with the Domino’s network, helps SCC
to interact with the stores more efficiently.

MODEL PROVIDE • Stores will have more visibility through the system through the
forecasting software which will allowed store managers and
A COMPETITIVE owners to track store’s inventory and store’s sales to the
customers. 

ADVANTAGE? • Domino’s has regularly achieved an on-time delivery

performance rate of 95%, and more surprisingly the majority of

HOW?  the order delivered within 24 hours, above the normal Service
Level Agreement (SLA) which is 48 hours. This shows that
Domino’s fleet management are being manage efficiently 
Q3. Do you see Flaws
Diners opted for less expensive
Improvements
Added diversity to its menu like 4
any major flaws in frozen offerings instead of pizza due
to recession
types of crusts, 25 topping choices,
5 pasta dishes etc.

Domino’s current Wastage of materials due improper

packaging
Redesigned packaging to minimize
wastage
supply chain Volatility of the raw material prices Appointed Commodity trading

services model?
like that of corn, wheat etc. in the experts to know the right time to
commodity market buy

How might you Higher supplier costs Reduced costs through long term
contracts and minimizing supplier

change it or make
costs by giving appropriate advices

Employees posted a defaming video Responsible hiring to onboard

improvements? on YouTube trustworthy employees
 • Domino began running some of the customers comments
gathered through its Pizza Tracker in July 2011.
• Domino Pizza tracker was a first for the food delivery
industry. The technology allowed Domino’s customer to
follow the progress of their order online from time they
placed it via the Domino’s website until the delivery
Q4. Has Domino’s arrive.
• The customer could see when order being prepared,
gone too far with when pizza out of the oven, out of the door and on its
way and the first name of the delivery person. Pizza
Tracker actively solicited customer comments which were
transparency? immediately shared with the store via Domino’s Pulse
system
• Increased online also meant Domino’s had to direct more
resources to managing its information technology (IT).
When customers order online, they see all the menu
options including pictures of different pizzas as well as
ordering by phone be more than ordering from memory
 • A major events such as Super Bowl watched by 100
million people attracted the order at the kick-off and
half time make Domino to ensure enough server
capacity to support spikes in demand. A group of more
than 50 IT members gathered at the WRC on game day
to monitor traffic Domino’s website to ensure
Q4. Has Domino’s continuous service.
• Domino launched an iPhone application in June 2011
gone too far with that allowed customers to order directly from their
mobile and search for the closest Domino’s location,

transparency?
access local and national coupons and check the on
the status of their orders using the Pizza Tracker.
• Furthermore they picked up inappropriate medium to
channel customer criticism on national ad campaign
billboard. It gives bad reputation if public see the
comments halfway without even notice the ending –
in this case the improvement they have made. 
 As per exhibit, revenue from international chain has increased from 123.4 to 176.4
that is almost 40% for year 2006 to 2011 and cost of international chain has
increased from 58.9 to 75.4 that is only 20% for year 2006 to 2011.
Hence international market shows growth opportunity for Domino’s.

Q5. Should • The implementation of Domino’s Supply Chain System in the US

domino’s brought a lot of benefit to the franchisees across the US. ​
• In the US, Domino’s had successfully built supply chain through its
attempt to franchise structure. ​
• Hence Domino’s should introduce and expand its supply chain
expand its internationally, especially to a huge country that has huge
populations such as UK, China, India, Canada, Australia etc. ​

supply chain • Domino’s had identified many markets where the number of stores
could be increased significantly internationally. This could be an

internationally? ‘eye-opener’ to Dominos for start off its supply chain internationally. ​
• As per exhibit 1 number of International stores has increased from
2006 to 2011. This shows success of Domino’s in international
market.​
• As per exhibit 2 revenue from international  stores has increased
only from 2006 to 2011​
• As international “master franchise” supply chain  had worked well, it
could leverage that knowledge to expand into international market. ​
Thank you