Inside the ‘AnyWare’ digital strategy at Domino’s Pizza
By Brian Steiner, Contributing Writer
The recipe for success in the hotly-competitive pizza industry isn’t just about the best sauce, crust, and toppings. For Domino’s Pizza, it’s also about new digital channels that let its customers order its food as soon as the thought occurs to them, regardless of where they are.
Betting big on digital has been very good for Domino’s Pizza, the nation’s second largest pizza chain by sales and locations, after Pizza Hut. In its latest quarterly earnings report, the Ann Arbor, Michigan company said same-store sales grew by 10.7 percent at its domestic franchise locations. (By contrast, Pizza Hut’s same-store sales numbers have been stagnating.) And for the full fiscal year in 2015, Domino’s said orders placed over digital channels hit $4.7 billion. Domino’s chief executive J. Patrick Doyle attributed those solid numbers in part to the company’s steady investment in technology.
Overseeing much of that investment is Dennis Maloney, Domino’s chief digital officer. “We are now at the point where more than half of our orders and our sales are coming through our digital channels — which makes us a very big e-commerce company,” Maloney says. “And that’s really about the way we think of ourselves. About five years ago we were a pizza company that sold online. We are now an e-commerce company that sells pizza.”
Maloney discussed the transition from neighborhood pizza shop to e-commerce innovator in a recent interview with Innovation Leader. Later this month, he will be speaking at the AGENDA16 conference in Florida. The title of his talk: “The Making of a Tech Company Out of Pepperoni and Emoji.”