Domino's Pizza, on its 50th birthday, celebrates sales boost
Ann Arbor Township-based Domino's Pizza is marking its 50th birthday today by celebrating a streak of sales increases sparked by a new pizza recipe and unusual marketing campaign.
Domino's, which has earned plaudits from the food industry for grabbing more market share on the wave of its new recipe, launched its first store in Ypsilanti exactly 50 years ago today.
Half a century later the company stands on solid financial ground. Sales at U.S. Domino's stores open at least a year have increased 11.6 percent through the company's third quarter, a particularly noteworthy accomplishment in an industry where sales figures typically don't fluctuate dramatically.
Still, the road to continued success contains a few obstacles. Notably, Domino's expects cheese prices to rise somewhat in 2011, chief financial officer Mike Lawton told investors this morning. Cheese represents one-third of food costs for Domino's the biggest effect on pizza prices.
"It’s important to remember that our domestic system is 90 percent franchised, so we’re not as impacted by commodity," Lawton said. But "commodity prices are obviously an important factor for our corporate stores and our franchisee profits and their overall health, so it’s something we always monitor carefully."
After its third quarter, which ended Sept. 12, Domino's had 9,169 stores worldwide -- 4,450 domestic franchisee-owned stores, 455 domestic company-owned stores and 4,264 international stores.
Domino's introduced an entirely redesigned pizza recipe in late December 2009 and paired it with a marketing campaign that acknowledged the poor quality of its old product. Collectively, those moves convinced many customers to give the chain a second chance.
Domino's Pizza is celebrating its 50th anniversary today.
AnnArbor.com File Photo
But any fears that a leadership transition could derail the chain's momentum were dismissed as new CEO J. Patrick Doyle kept the company running in the same direction.
Domino's dates its history to a store that opened near Eastern Michigan University in 1960.
"Back then we were just a little pizza store next to a college campus, and from those humble roots no one imagined that 50 years later we’d be opening our 9,000th store worldwide back in March and that over 4,000 of those stores would be outside of the U.S.," Doyle told investors this morning. "We’re an iconic brand with a long history in the U.S. and a future that will be greatly enhanced by our international business."
Contact AnnArbor.com's Nathan Bomey at (734) 623-2587 or nathanbomey@annarbor.com. You can also follow him on Twitter or subscribe to AnnArbor.com's newsletters.
Comments
Ann English
Fri, Dec 10, 2010 : 8:54 p.m.
So David Brandon used to be CEO of Domino's? That might explain why we got Domino's pizza to eat at work (founded by another UM athletic director) yesterday, on the eve of Domino's fiftieth anniversary. On other occasions, we do eat competitors' pizzas at work.
Michigan Reader
Fri, Dec 10, 2010 : 7:16 p.m.
The old recipe was good too--it's more how a particular store followed "directions" as to how the company wanted pizzas made. I've always had good pizzas from the Ann Arbor stores, not so good ones from out of state stores. So if the quality varied, it wouldn't be the recipe. As someone posted previously, "dollar voting". What, some billion plus in gross revenue for the old recipe.
Raymond
Fri, Dec 10, 2010 : 2:07 a.m.
Well thats good to hear, as an employee i'm glad the company is strong. There's a union trying to take control of the store i work in (NYC), not sure what the overall effect will be on my area, if there is at all.I'd rather stay out of it for practical(and ideological) reasons.
breadman
Thu, Dec 9, 2010 : 5:32 p.m.
Not so much on the pizza for. But they do have some good sandwich.. Now the chocolate lava crunch cake... That does come to a another story.. Just to let you know, you taste it on your "lips and could wear it on the hips"
Ann Arbor Resident At Large
Thu, Dec 9, 2010 : 12:22 p.m.
I don't care much for Dominos new default sauce (Robust Inspired Tomato), It has too much of a kick for me. But you can choose their Hearty Marinara (My Favorite), BBQ or White sauces which I didn't really know about until ordering online one day. I think their mushrooms lack quality. I do have to agree with Ariel their wings are awesome and also their Chocolate Lava Crunch Cake is mouth watering good. Their specialty Philly Cheese Steak Pizza is very good as well. Now I'm really hungry!
Nathan Bomey
Thu, Dec 9, 2010 : 11:09 a.m.
Sorry, that should be 2009. I fixed it. Thanks!
dexter
Thu, Dec 9, 2010 : 11:09 a.m.
Nathan, how can they have a new recipe come out in late Dec 2010? I think you mean Dec 2009
justthings
Thu, Dec 9, 2010 : 11:07 a.m.
Try an independent on Ford Blvd in Ypsilanti, "pizza Perfect" They do a good job.
Hmm
Thu, Dec 9, 2010 : 10:26 a.m.
Little Caesar's is at the bottom of my list. Although Domino's new pie is significantly better than the previous incarnation I haven't felt compelled to order from them for a while. Would rather have Faz or NYPD. And Ariel is 100% right about their wings they are really good.
Top Cat
Thu, Dec 9, 2010 : 10:21 a.m.
Their pizza is OK but nothing more. New York Pizza Depot downtown is the real deal.
Ariel
Thu, Dec 9, 2010 : 10:12 a.m.
I personally love Dominos and have been even before they changed their sauce. I also LOVE LOVE LOVE their wings. Other places just fry some sort of chicken nugget thing and give you BBQ sauce to dip it in. Those are not wings! (cough Cottage Inn)
delirium454
Thu, Dec 9, 2010 : 10:08 a.m.
Is it just me or does anybody else think that Domino's is the worst pizza chain in U.S. Pizza's from Jet's, Pizza Hut, even Little Ceasar taste so much better. I am not even sure what all the buzz is about the new upgraded pizza from Domino's. I tried it and I think it got worst then it used to be.
Greggy_D
Thu, Dec 9, 2010 : 9:52 a.m.
Honestly, I cannot stand the redesigned pizza. I think the sauce is horrendous.