Domino's gets a makeover, loses the 'Pizza'

The company is revamping its stores to reflect a new reality: Customers don't want delivery.

By Kim Peterson Aug 15, 2012 2:19PM
Credit: ©2008 Domino's
Caption: Domino's Pizza new logoDomino's Pizza (DPZ) is overhauling its operations, getting a new logo and dropping the word "Pizza" from its name.

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:

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Tags: DPZ
463Comments
Aug 15, 2012 2:59PM
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  People pick their stuff up because for me it saves me $5 in delivery charge and tip!

Aug 15, 2012 2:58PM
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we got domino's pizza at the card game last week and it was the worst pizza i've ever had and there were 10 other people that ate it and not one person had anything good to say about it. if that's the best domino's has to offer they should drop pizza not only in name, the pizza too.
Aug 15, 2012 5:34PM
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Anyone agree that local pizzas are the best?
Aug 16, 2012 8:05AM
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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.

Aug 16, 2012 6:45AM
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Keep delivery. Give people a choice. I'm disabled and only use delivery.
Aug 15, 2012 3:01PM
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Might as well drop pizza from the name since they never knew how to make one anyway.
Aug 16, 2012 3:51PM
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As a former Domino's driver, I completely agree with most of the posters.  When I worked, there wasn't a delivery charge, but we did get 50 cents per delivery (FYI: 2003).  Now, the owners looked to make additional money off of their help.  Hence, the delivery charge was born.  What's next, a pickup charge?  It's sick.  PS: Continue to tip your driver if you elect to get delivery.  Chances are he's burned that much in gas coming out to your house or apartment.  Tip him double if you live in the projects where it should be called "hazard pay".  The threat of break-ins exist, along with robbery...it's a scary job if you have to keep one eye on your car and another on your back.
Aug 15, 2012 3:39PM
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I was a Domino's Pizza Delivery Person back in the day (over 20 years ago).  I would come in sweaty from delivering pizza in my beater car, with dirty hands and was told to immediately assist with the pizza assembly.  I was told not to bother washing my hands, there was no time for that, and "it all cooks out in the heat."  The pizza maker would throw the dough up in the air...one time it fell to the floor, but he caught it with the tip of his sneaker and yelled SAVE!!  That was the first I learned of the FIVE SECOND RULE.  Plus, lesson one, it "all cooks out anyway."  We were told not to have the sprinkles of cheese touch, since they would melt together.  But one of the drivers would make the "employee pizzas" with quintuple the ingredients any paying customer would ever get.  Those pizzas were actually halfway decent.  Although knowing what I knew about the complete lack of sanitary cooking conditions, I have boycotted Domino's Pizza since this experience, back in 1986.  There's so much more to tell, it would fill a book.  Another aspect is how we weren't paid for the use of our vehicles, and that was when there was the 30 minute delivery guarantee.  Almost needless to say, when I quit the job, my car quit too.  Ah, memories of lousy jobs and lousy pizza...etched in my mind like a mini lobotomy scar.
Aug 15, 2012 3:45PM
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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..... :)

Aug 15, 2012 4:22PM
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The "problem" with Dominos is that they think they can tell customers what they can and cannot order, on their new artisan pizzas.  The moment they made that comment, our household pretty much said, "have a nice life, you're outta here!"   Too many places to patronize, it doesn't have to be a business that mandates what I can have on my pizza (I'm the one eating it).  Some who want to customize an artisan pizza might have allergies and want to substitute something else.  They're morons for putting that practice into place, and we have kicked them off our delivery options.
Aug 16, 2012 3:30PM
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this article is garbage, they arent delivering anymore because they cant afford to reimburse drivers for gas and most people are not going to sign up to run their cars at the gas prices today anyhow. They are just trying to cut costs and make people think its the publics idea.
Aug 15, 2012 4:21PM
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The reason I pick mine up is that If I get a 10 dollar pizza by the time I pay the 2.50 delivery plus the tip for the driver, I now have a 15 dollar pizza. 
Aug 15, 2012 3:01PM
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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...

Aug 15, 2012 4:33PM
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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.

Aug 16, 2012 4:16PM
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Its not that customers dont want delivery anymore its that the customers dont want to pay a delivery charge anymore.Get it right Dominos  big wigs.
Aug 16, 2012 1:43PM
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I've read a lot of comments and I'm suprised that no one has mentioned the cost of adding a tip to your pizza.  Sure its great to have delivery, but since I generously tip, it adds on 5 bucks to your order.  I can save the 5 bucks by driving a few minutes. 
Aug 16, 2012 1:04AM
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What? People would rather get delivery to avoid social interaction and dining in public. Just the way things are. Where in the world did they get the idea that people don't want delivery anymore? 
Aug 16, 2012 1:18AM
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...Well, KFC dropped all the names `Kentucky', `FRIED', `Chicken'.....Also, a bit odd how so many commenting people used the phrase `tastes like cardboard' when describing the Domino's Pizza....Silly people, you are supposed to eat what is inside the box, not the box. I have never eaten cardboard...does it taste like pizza?
Aug 15, 2012 9:41PM
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What did all these pizza chains think would happen 10 years ago when Pizza Hut first added a "delivery charge"?  Every other chain quickly saw an opportunity for pure profit and jumped on the "delivery fee" bandwagon.  Now you can't find a place that delivers food without the delivery fee, which is at least $2 and can go up to $5.  On top of that, they would have you believe they give this fee to the driver..... WRONG.  So now you pay $2 on top of your $10 pizza, plus a tip of $2-$3.  So that $10 pizza now becomes $16-$18 after delivery fee, tip, and tax.  That's a 30% to 40% increase in the price versus picking up the order yourself. 

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.

Aug 16, 2012 3:41PM
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Why should the customer pay a delivery charge when its the drivers cars that are used to deliver the product? Yeah the driver is given a dollar for each delivery they take throughout the night to pay for gas but what about the wear and tear on their cars? What exactly is the delivery charge for? Just a way to make more profitability for the company. Bad move on dominos part thats why they have to offer 5.99  deals just to get people to order from them. Tom Monahan knew how to run dominos pizza. It went to crap after that.Again when a customer pays 20.00 for dinner and then sees another $1.50 delivery charge and then another $1.50 for tax and the total ends up being $23.00 who wants to fork out another $5.00 tip for the poor driver. What started out as a $19.99 special ends up costing $30.00.
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