Dominos Pizza - the Recipe for Business Success

A great interview here with the CEO of one of our favourite UK business case studies - Dominos Pizza.  The Observer quizzes Chris Moore, UK and Ireland chief executive of Domino’s Pizza about the firm’s outstanding recent results…

Some fascinating examples and quotes:

- The average Dominos Pizza franchise earns around £100k in profit each year

- The level of repeat business and customer satisfaction is directly linked to the speed at which a pizza is delivered to the customer’s home

- Dominos home-delivery lead time has fallen from 17 minutes in 2005 to 13 minutes in 2010 (the time between the finished pizza leaving the oven and the time it arrives with the customer)

- Dominos UK earns 5.5% of the sales value of each pizza (from the franchisee), but must pay half of this to the ultimate owner of the brand - Dominos in the USA.

- Franchisees do have some choice about where they source their pizza materials, and what they can offer as a local product range

- The age-range of Dominos customers has widened to 18-55 as most consumers have got used to the concept of home delivery

- Online & smartphone orders (e.g. via the iPhone app) now account for 36% of sales

- Dominos UK has a market capitalisation of around £1bn, or 40 times annual profits.

- Why does the speed of pizza delivery matter so much?  “Up to 30 minutes, people are hungry; after 30 minutes, they’re angry”!

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