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Domino's Pizza's Sales Rise After Menu Changes, Candidness

Posted by Ben Berkon on March 3, 2010 12:31 PM

Domino’s might be in the business of delivering pizzas, but it has also been taking home the bacon recently. The pizza giant boasted its most lucrative fourth-quarter earnings – producing twice as many sales, better margins, and lower interest expenses.

With tough competition from Pizza Hut and Papa John’s, how did Domino’s pull off such a feat? Was it by offering more lunch options such as pasta, sandwiches, and salads? Or was it the brand’s decision to pump money into its advertising? Both could account for the surge on some level, but there’s another factor to consider: Domino’s admitting that their pizza was bad.

While various additions and subtractions to the Domino’s menu have helped revamp the former pizza-only company, its “new pizza” campaign has given the brand a whole new life. Even top Domino’s executives have pointed to its new dough for the increase in, well, dough.

“This positive momentum has continued thus far in 2010, as sales and traffic have increased significantly since the launch of our new core pizza,” said Chief Executive David A. Brandon.

Customers who complained about the brand’s sauce, crust, and overall “bad” taste were all surprised to witness Domino’s actually listen and make changes. Television sets across the nation have been beaming with Domino’s Pizza commercials showcasing the new garlic crust, fresh toppings, hand-tossed dough, and an overall mea culpa tone.

Domino’s Pizza’s candidness has (so far) earned it both the respect and cash of customers. Its all-ears business approach certainly has competitors listening to the brand’s new tune.

Comments

Jeff United States says:

I agree... I think the surge was Domino's admitting the pizza was bad. By acknowledging what folks thought about their pizza, it was a bit easier to listen to them as they talked about the changes they made. No one would have listened if they just said "new and improved."  www.the-reason.com

March 4, 2010 03:55 AM #

Deepti Menon India says:

So can we hope now that they will do the same across all Domino's across the world? Or is the candidness just for the US?

March 4, 2010 05:10 AM #

Dan United States says:

After viewing their commercials, I went back and gave them another try this past weekend.  I was amazed at how much improved their product was.  This is a great example of a company addressing the core business need and delivering against it.  Just this week I've told probably 20 people about Dominos great new pizza.

March 4, 2010 09:25 AM #

I. Quiroz Peru says:

Well done video and better idea. I have eaten Domino's maybe two times in my life and my opinion was that it was one of worst pizzas I have ever eaten. Obviously, I wasn't the only one who thought that. So Domino's is accepting that (openly) and is making changes. I think is great. I would like that some other companies have the same approach about their products.

March 4, 2010 11:45 PM #

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