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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.
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