Domino's Pizza: Fortressing a Market
Former CEO at Domino's Pizza Group
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Domino's Pizza: Fortressing a Market(January 19, 2024)
Former CEO at Domino's Pizza Group
The executive has over 40 years running retail businesses and is the former CEO of Domino’s Pizza Group, the UK master franchise operator of the Domino’s brand. He joined Domino’s in 2013 before becoming CEO in 2014 and rolling out over 400 new units. Domino’s has over 1,150 units in the UK and is one of the most profitable operations in the Domino's system. He started his career with 18 years at Tesco in the UK and running the Central European operation for six years in the late 1990’s. He then ran Walmart Germany and spent a year in the US before returning to the UK to run Halfords, a £1bn retailer in the UK.
Interview Transcript
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Can we start by exploring when and how you first encountered the concept of fortressing.
I've been pondering that since you sent over the list of questions. I remember it quite distinctly. It was in Liverpool in March 2014, shortly after I had taken over as Chief Executive. We had a strategist from Domino's US, who had previously worked for Bain. He presented a chart showing the growth of Papa John's and Domino's in the 1990s. Essentially, Papa John's opened around 1,100 to 1,500 stores during that period, while Domino's opened about 200. The 1,500 stores that Papa John's opened targeted Domino's weak points, specifically the periphery of their delivery areas. Papa John's seized the opportunity to offer customers superior service and products in those areas where Domino's was weakest. This strategy led to Papa John's growth and its emergence as a serious competitor to Domino's in the US.
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What do customers say they care about when choosing Domino's?
Customers generally have positive feedback about Domino's product and service. During the years I was running Domino's in the UK, the early years of the aggregators, customers consistently said that we at Domino's provided better service and product than the aggregators. I believe the aggregators are better businesses today than when I was competing with them, due to their increased experience. However, customers highly valued the service and quality of a hot pizza arriving within 15 to 20 minutes of ordering.
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