Domino's gets a makeover, loses the 'Pizza'
The company is revamping its stores to reflect a new reality: Customers don't want delivery.
The changes -- the company's biggest in decades -- stem from an important shift in customer behavior. People are starting to pass on home delivery in favor of picking up their orders in person.
Blame belt-tightening in the economic downturn: Customers can save a few bucks by picking up orders themselves. And for many, there are enough pizza locations on the drive home from work that pickup is easier. Finally, the hottest trend in pizza lately is the build-your-own walk-through (think Subway-style ordering).
So Domino's is changing with the times, making its stores more approachable and comfortable for pickup customers. And it's dropping the "Pizza" because its stores will have a wide variety of grab-and-go items that aren't pizza at all, including pasta, salad, wings, chicken sandwiches, parmesan bread, sodas and chocolate lava cakes.
"So much of our menu is beyond pizza right now that we feel like we're more than just a pizza place," Russell Weiner, Domino's chief marketing officer, told AdAge.
Domino's is also adding big-screen TVs and comfortable seating for customers waiting for orders. It's adding Pizza Theaters, with views of the pizzas being made. There will be chalkboards for customers to draw and write on, according to the Los Angeles Times. The company will have a new logo (pictured) with no text, one that it hopes can become iconic and instantly recognizable, even overseas.
A few years ago, 80% to 90% of Domino's business was delivery, Weiner told AdAge. But that's changing fast, and now 30% of sales are pickup.
Domino's isn't the only pizza company to see the trend. Nation's Restaurant News says there's a new breed of fast-casual pizza restaurants emerging. Generally, they charge customers one price for unlimited toppings. Customers walk the service line and choose the ingredients, and the pizzas are cooked in less than six minutes.
A number of new chains are quickly expanding to fill this niche, but NRN says the biggest ones are MOD Pizza, Pie Five, Uncle Maddio's Pizza Joint and Top That. "There's a bit of a land grab going on," Scott Svenson, a partner in MOD Pizza, told NRN. "People want to be seen as an innovator in the space."
Carryout pizza has become the No. 1 pizza format in the country, according to research firm Technomic. More than two-thirds of customers opt for carryout at least once a month, AdAge reports. That's enough for carryout pizza to topple the previous leader in the space: frozen pizza.
Here's a video of Domino's CEO Patrick Doyle talking about the business back in July:
More from Top Stocks
- Can an ad-free Twitter replace the original?
- Target's so-so results good enough for Wall Street
- Old-school stock investing is far from dead
People pick their stuff up because for me it saves me $5 in delivery charge and tip!
These companies have their think tanks and yet have no clue what the problem is. They drive away more business and think they have to change something to get more business.
Here is the the thing. Dominoes delivered to my address for 20 years. One day I called for delivery and they said no. I was 9.8 minutes away and their policy is 9 minutes. I stop and get Pizza from Little Ceasars on the way home. Or I go to an Itallian restaurant. But no way wil I get a Dominoes again no matter what they do.
Bet that never comes up in one of their meetings. Brainy people never have a clue of what reality is.
One of the reasons people are picking up there pizza's is because it's alot faster... it only takes 15 minutes for carry-out veruses... 45 to 50 minutes for delivery... But, PLEASE!!! don't stop delivering... because there are alot of disable people that relay on company's like yours to get there meals...
Thank you for letting me put my 2 cents worth in..... :)
The delivery guys shouldn't have to rely on tips. It costs a lot to operate a car now. Add a nomimal fee for delivery and pay the guys amply whose cars the corporation is using.
I'm one of the people who prefer pickup because I don't have cash to tip (I hardly ever use cash) and I hate to add it on the charge card because I think it doesn't always go back to the driver. In any case, be generous to the drivers because I think what they earn doesn't compensate for the wear and tear on their cars.
In the 80s, Domino's Pizza was sued by Domino Sugar. The court agreement determined that Domino's Pizza MUST call themselves Domino's Pizza, and could not call themselves Domino's. As a Domino's Pizza store manager for decades, I know that we were told Domino Sugar does spot checks on our phone answering. We were told BY CORPERATE executives that we would lose our franchise if we ever got caught answering the phone as "Domino's".
This article calls BS on the corperate offices...
Originally the delivery added was only $0.50, but greed took over and that fee has doubled, tripled, and even quadrupled. Guess what? It doesn't take an MBA to see deliveries decrease with an increase in the delivery fee.
MORE ON MSN MONEY
Copyright © 2013 Microsoft. All rights reserved.
Quotes are real-time for NASDAQ, NYSE and AMEX. See delay times for other exchanges.
The market's cheap money addiction is laid bare. No one knows how it will end.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.