Here’s a question for the rapid-fire quiz round – name a company that went public in the same year as Google, but has delivered greater returns? Hint – it’s not a tech company. And it’s an organization that, as recently as 2009, faced financial challenges. The answer: Domino’s Pizza.
Thinking the answer was a tech company is actually on the right track. Domino’s is increasingly tech-driven: 60% of sales now come from digital channels. This is a leap up from 2010’s 25% of sales. And when you compare that performance with a restaurant industry average of 20%, it speaks volumes of Domino’s and their digital transformation. Little wonder then that Domino’s chief digital officer, Dennis Maloney, says, “When more than half of your sales are coming through your digital channels, you are, by default, an e-commerce company.”
Domino’s digital transformation was founded on three key initiatives:
1. Creating a digital platform for consumers – You can order a Domino’s pizza in any number of ways, from Apple Watch to Google Home. The focus is on ease of ordering, In fact, there’s even an app where all you need to do to order a pizza is to just open it. The app has a 10-second countdown window, in case you open it by mistake and need to cancel.
2. Digitizing Operations – Domino’s has successfully digitized its operations and continues to innovate and experiment with new delivery methods. These include drones, robots and high-tech delivery trucks. In Australia, Domino’s set up a dedicated division, DRU or ‘Domino’s Robotic Unit’, to work on an autonomous delivery vehicle. In New Zealand, in 2016, Domino’s completed the first delivery of commercial food by drone worldwide. In the US, Domino’s has introduced a high-tech delivery vehicle – the Domino’s DXP – with an in-built oven for warming pizzas, storage space for 80 pizzas and areas for sodas and salads.
3. Creating a digital enterprise platform for franchisees – Domino’s shares its technology and innovations with its franchisees. The model involves building the core technology platform, which is leased out to its franchisees with stores charged a fee for every sale conducted through the platform. Domino’s has also been successful in encouraging its franchisees to adopt its PoS system. As opposed to having multiple systems, a single system means it can seamlessly roll out best practices around the world.
Leadership and Vision
Our digital transformation research has consistently shown that successful digital leaders – ‘digital masters’ – have a transformative vision and that they lead the strategy from the top. Domino’s CEO Patrick Doyle encapsulates his firm’s winning strategic recipe when he says: ”By making technology-driven innovation a key component of its transformation, Domino’s has shown that it not just the digital natives who can cook up a technology storm. When traditional incumbents get the recipe right, the rewards are the envy of even technology stars.
For more details on Domino’s digital transformation, read our latest research in the Digital Masters series - https://www.capgemini-consulting.com/resources/dominos-recipe-for-digital-mastery