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Domino’s Case Study: Supply Chain and Competitive Advantage

The Outcomes of Increased Transparency

Centralized supply chain model and new recipes, applying domestic supply chain to international operations, video voice-over.

The supply chain developed by Domino’s has a series of competitive advantages. First, and foremost, it is necessary to point out the benefits of the centralized purchasing that allows the company maintain the high quality of its products and provide sustainable quick service. Domino’s supplies its stores with 240 products that range from the essential ingredients to the specific equipment (Bell, Andrews, & Shelman, 2013). Thus, the company guarantees that every store meets the corporate standards.

Secondly, Domino’s has worked out an effective location strategy. Its supply chain facilities are allocated in such a manner that suppliers can reach the targeted store within 48 hours maximum. The reasonable area coverage allows the company to perform timely service that is crucial for the food segment as some products have a limited shelf life.

Moreover, Dominos’ delivery procedures elaborately planned in order to eliminate the maximum of back-of-store activities. Thence, most of the deliveries are carried out during the night time so that a store’s operation is not disrupted. The drivers are also responsible for stocking the store’s shelves that lets the staff recognize which products they should use first. Therefore, the Domino’s scrutiny in delivery operations enables the store’s workers to remain fully focused on the service.

Finally, the company employs the latest technologies in order to advance the efficiency of their supply chain system. Domino’s computer system, Pulse, is designed specifically to ensure the consistent connection between customers and stores as well as to help the stores access delivery service. The corporate computer platform assists in maximizing the supply chain operation and enables Domino’s to monitor the flaws and limitations that should be eliminated.

Hence, key advantages of Dominos’ supply chain are centralized purchasing system, efficient region coverage, thoroughly planned delivery and advanced technologies.

The extent of transparency that Domino’s managed to reach is rather impressive. Although the company took significant risks, practice showed that the implemented strategy produced a positive effect on their image and helped to improve the service.

First off, Domino’s decision to increase transparency was not completely voluntary but was, to a large extent, imposed by the accidental popularity of the YouTube video that jeopardized the company’s reputation (Bell, Andrews, & Shelman, 2013). Moreover, the company was receiving negative feedback from customers regarding the taste of their products. Therefore, some alternative solutions were essential. From this perspective, Domino’s management skillfully turned the unpleasant incidents into an advantage.

The solution that the company chose was rather unexpected. It is necessary to admit that letting the public opinion appear in such a crowded place as Times Square is a challenge, taking into account the fact that they did not filter the negative comments. On the one hand, they took the risk of revealing all the drawbacks of the service in front of both their regular and potential clients. On the other hand, they showed people that they were responsible for the quality they provided, and were ready to improve it on request.

It is also critical to note that in the framework of this campaign, Domino’s opened access not only to their services but to the basic stages of production. Thus, customers were welcomed to get acquainted with the nature of ingredients and the operations in the kitchen.

The principal strengths of this measure resided in combining public feedback with the launch of the new pizza tastes. The customers were encouraged to participate in the process of the new products’ creation that made them feel a part of the common activity and compensated the negative attitude.

In addition, objective critics enabled the management indicate most typical drawbacks of the service and eliminate them.

Domino’s case study showed that centralized supply chain is highly effective from the standpoint of launching new projects. One of the best evidence for this assumption is the company’s successful rolling out new recipes.

The principal benefit of the centralized supply chain system is that all the stores are sure to use the same ingredients and, most importantly, to work with the same equipment. Thus, due to the domestic supply chain the company was confident that the improved recipe will be successfully implemented all around the country as every store was guaranteed to receive the same set of ingredients including the sweet sauce that represented the key innovation (Bell, Andrews, & Shelman, 2013).

Meanwhile, the implementation of the new recipe created additional challenges for the supply chain that could not have been overcome unless it had a centralized structure. As long as the introduction of the new pizza taste coincided with the two busiest occasions in the U.S., the New Year Eve and the Super Bowl, the store received a significant extra charge. The centralized supply chain service enabled the company to provide regular and timely delivery service so that the stores could fill all the orders during this busy period.

It would be reasonable to assume that Domino’s would not be able to cope with these challenges if their stores were poorly connected with the delivery service or purchased goods from different distributors.

The fact that Domino’s domestic supply chain model shows effective performance seems to be undoubted. In the meantime, its application to the international markets might be rather problematic.

First and foremost, it is necessary to note that some aspects of the centralized model are already implemented in the international operations. Thus, the majority of foreign stores employs corporate computer seems for managing the orders and delivery services (Eastham, Sharples, & Ball, 2007).

The principal difficulty in implementing domestic model into foreign market resides in the franchise conditions that are slightly different for the local and the international parts. Thus, international master franchisees receive more freedom in choosing a supplier of the necessary ingredients. It is determined by the necessity to adapt to the peculiarities of the local market and the impossibility of using US delivery services around the world.

The relevant freedom of the international parts does not imply any risks for the cost-effectiveness of the service. For example, Domino’s supply chain in India was specifically designed for this market. The local managers found a reliable and cheap supplier in Jalandhar that enabled them to maintain both quality service and low prices (Ray, 2010).

Moreover, the menu standards for foreign stores are, likewise, less rigorous than in the home market. Therefore, international franchise allows adding some options to meet the local demands, although a particular set of Domino’s items is obligatory.

In case, one decides to change supply conditions for the international parts, one will, consequently, have to alter the share terms that is rather risky taking into account the fact that there is no guarantee of a successful implementation of the domestic model in the foreign markets.

Bell, D. E., Andrews, P., & Shelman, M. (2013). Domino’s Pizza . [Lecture]. Boston, Massachusetts: Harvard Business School Publishing.

Eastham, J., Sharples, L., & Ball, S. (2007). Food Supply Chain Management . New York, New York: Routledge.

Ray, R. (2010). Supply Chain Management for Retailing . New Delhi, India: Tata McGraw-Hill Education.

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Domino’s is not a pizza delivery company. What it is then?

Today Domino’s story is a fairy tale of Digital Transformation in the 21st century. But it was not always the case. I remember as a kid, outing for pizza was an event and an opportunity to celebrate with family and friends. We always had a discussion on where to go (I am a 90s kid and there was no home delivery system back then) to eat pizza.

The only choice we had was either Pizza Hut or Domino’s. Pizza Hut was always the winner. Why? Pizza Hut used to give experience and ambiance at the restaurant that Domino’s could not.

Domino’s were boring counters with just a couple of tables and self-service. Whereas Pizza Hut used to give a premium feeling and make my pizza eating experience more special. That’s why we never minded giving Pizza Hut some extra bucks for this premium pricing. How does premium pricing work is a topic for some other time? (Remember technology or digital transformation of services was not of that prime consideration)

Fast forward to 2020, Domino’s has clocked in annual revenue of $14 billion in FY2019 through its 17,020 restaurants across the world. The 11% YoY growth helped the company to gain a net income of $400Mn. Whereas Pizza Hut’s largest franchisee in the US, NPC, has filed for Chapter 11 bankruptcy on 1st July 2020 .

Here are some more jaw-dropping facts about Domino’s:

• Had you invested $1000 in Domino’s in 2004 (the year it went public), the investment would have been worth $58,000 today (surprisingly the return is more than that of Google Apple, Amazon, and Netflix)
• The increase in same-store sales has never been below 4% and frequently been above 10%.
• Globally Domino’s opened an average of >3 stores per day in 2019.

But perception of Domino’s brand was something different back in 2009. Some of the customer feedback Domino’s received:

Domino’s crust tastes like cardboard. The sauce tastes like ketchup. This is an imitation of pizza.

Led by J. Patrick Doyle , Domino’s turned things around by first acknowledging that its pizza sucked. Domino’s launched a campaign “Oh yes we did”. Domino’s then spokesperson Chris Brandon said “Our ‘Oh Yes We Did’ campaign only shows consumers that we have indeed been hearing what they have to say — but it also shows them how we have done so.” They also released a video with their employees reading negative comments out loud. Here is the video for you:

Patrick Doyle has led a remarkable transformation of Domino’s Pizza. His impact on the food, the technology, the operations, and the international expansion of this brand has been game-changing. Cheryl Bachelder, former CEO of Popeyes Louisiana Kitchen.

So what did Patrick do? He pursued a multi-pronged strategy mainly relying on digital transformation:

• Domino’s got rid of their 49 years old recipe. Now they included delicious garlic, buttery crust, and added a category “Specialty Pizza” consisting of lightly breaded chicken topped with cheese and exotic toppings such as bacon and jalapeno.
• The real change came with the digital transformation of the supply chain. This step completely changed the brand perception of Domino’s from a pizza delivery company to a technology company.

Digital Transformation journey of Domino’s

Domino’s invested heavily in digital capabilities. However, in order to execute on these digital innovations, Domino’s first built rock-solid IT capabilities that could allow the company to internally develop these new digital innovations. It could now provide its services in technologically advanced ways that people could only dream of in 2009.

The innovations have been effective as they are closely aligned with the company’s franchise business model. Let’s have a glimpse of its digital journey:

• 2008: Domino’s launched its “ Pizza Tracker “ technology to keep customers updated on the progress of their order. The technology allows Domino’s to extend its centralized services such as supply chain management and IT to its franchisees, thus simplifying the franchise’s operations and improve cost management.
• 2011: Domino’s launched its iPhone application, allowing customers to order on the go. The mobile-first approach worked exceptionally well for the brand. Mobile ordering quickly became the dominant ordering channel.
• 2015: Domino’s launched Anyware that allows customers to order from anywhere and anytime through a device. Customers can order from a plethora of devices including Amazon Echo, Google Home, Siri, Smartwatches, Smart TVs, Slack, Facebook Messenger, Twitter, and more.
• 2016: Domino’s shocked the world with first ever Drone delivery of pizza in New Zealand. (It was a Peri-Peri Chicken Pizza and a Chicken and Cranberry Pizza 🙂 )
• In June’20 Domino’s launched “ Domino’s Carside Delivery service ” as its way to fight against COVID but through digital transformation in its carryout method . Customers have now an option in application or website to choose Domino’s Carside delivery. Customers now have an option to stay in the vehicle while their order will be delivered at any location of the vehicle of their preference. Be it back seat or trunk. Making the entire process contactless, convenient, and safe.

Fun Fact: Domino’s has dared to open stores in Pizza inventor ITALY

Do you still have a doubt that Domino’s is a pizza delivery company? Naah.. It’s much more technically advanced than a technology company. Half of its workforce at headquarters is in software and analytics. Domino’s has made pizza ordering practically as easy as breathing. But how did it activate critical enablers of digital transformation ? How did it choreograph and orchestrate the digital transformation (change management)? That’s a story for some another time….

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Domino’s pizza: delivering a superior business model.

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MIAMI, FL - APRIL 14: A sign in front of a Domino's Pizza April 14, 2004 in Miami, Florida. ... [+] Domino's Pizza is looking to raise $300 million in the stock market by listing on the New York Stock exchange. The Michigan-based firm already has a London stock market listing for its UK subsidiary. According to media reports, the funds raised may be used to pay off debts. The 44-year-old firm now has 7,400 outlets in more than 50 countries. The firm is reporting that pizza sales are up 5.8% in 2003. (Photo by Joe Raedle/Getty Images)

This company saw large market share gains throughout the pandemic and is positioned for years of more profit growth, but its stock has fallen 30% year to date and is trading at pre-pandemic levels. The company is mischaracterized as a restaurant chain when it is really more of a supply chain operator and consumer marketing firm. Domino’s (DPZ) is this week’s Long Idea.

Domino’s stock presents quality risk/reward given the company’s:

• position as the world’s largest pizza chain
• consistent market share gains
• efficiencies from its integrated delivery system that third parties cannot replicate
• ability to overcome current labor shortages over the long term
• superior profitability to peers
• valuation implies the company’s profits will permanently fall 10% from current levels

Cheapest PEBV Ratio Since 2013

Like many companies that grew sales during the pandemic, Domino’s Pizza’s stock price soared ~50% above pre-pandemic levels. Then, as traders unwound their pandemic trades, the stock has tumbled 30% year-to-date and now trades below its price-to-economic book value (PEBV) ratio (0.9) for just the second time since 2013. See Figure 1.

A PEBV ratio of 0.9 means the stock is priced for profits to immediately fall and permanently stay 10% below 2021 levels, which as I’ll show below, is highly unlikely. For more details about the upside embedded in Domino’s stock price, see the scenarios analyzed using my reverse discounted cash flow (DCF) model in the valuation section.

Figure 1: Stock Price and Economic Book Value per Share: 2013 – Current

DPZ Price to EBV

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Proven International Force

Domino’s has more than 18,800 locations in 90 different markets around the world. Domino’s U.S. and international retail sales have each grown by 10% compounded annually over the past 10 years. Per Figure 2, Domino’s international segment accounted for 51% of its global retail sales in 2021.

Global reach exposes the company to geopolitical risks but a wide geographic dispersal limits exposure to individual countries outside the United States. For example, Domino’s risk from rising tension between China and the international community is limited as just 5% of its international stores are in China.

Figure 2: International and U.S. Retail Sales: 2021

DPZ Sales Mix

Franchise Model Drives Store Count Growth

Domino’s is thought of as a restaurant chain, but the company owns just 2% of its stores. The company generates revenue from franchise royalties and its supply chain operations in the United States. Dominos is more of a supply chain operator and consumer marketing firm than it is a restaurant chain.

This franchise model is beneficial to investors because it enables the company to efficiently manage its capital while having the flexibility to pursue strong growth opportunities. For potential franchisees, the company offers a streamlined operating model, national marketing campaigns, and a cash-on-cash return of investment in three years or less.

Clearly the opportunity is attractive to franchisees globally because the international market has been the main driver of store growth. Per Figure 3, Domino’s grew its store count from 11,629 in 2014 to 18,848 in 2021.

Figure 3: International and U.S. Store Count: 2014 – 2021

DPZ Store Count

Continued growth in the global Quick Service Restaurant (QSR) market will support Domino’s global retail sales growth. Research and Markets expects the global QSR market to grow at a 4.9% CAGR from 2022 – 2027.

Domino’s continues to see opportunities for profitable store growth. The company believes the U.S. market has the potential to grow to 8,000 stores, compared to 6,560 at the end of 2021, and its top 14 international markets could add an additional 10,000 stores, which would nearly double its international store count.

Taking Control from Start to Finish

A key contributor to Domino’s success as a franchisor is the control exerted over its product quality and customer experience, from end-to-end. Here’s how the company maintains that control:

• Supply chain: Supply chain operations provide quality-assured ingredients at competitive costs, freeing time for franchisees to manage other parts of the business. For example, Domino’s delivers mixed dough to stores, saving operators a time-consuming preparation step.
• Franchisee selection: Over 95% of the company’s U.S. franchisees started as drivers or in-store employees. The company requires franchisees to have extensive Domino’s and management experience. By being selective, Domino’s protects its brand with franchisees who understand its business model and culture.
• Delivery: Domino’s operates an efficient delivery system that ensures customers gets a hot, quality product delivered in a timely fashion.

By taking ownership over the entire process, Domino’s eliminates cost inefficiencies and maintains a consistent quality level across its entire business.

Digital Business Enhances Customer Experience and Profitability

Domino’s digital capabilities enrich the customer experience by offering quick and easy ordering options, a rewards program, exclusive digital-only deals, and a voice ordering application. Digital orders create more customer engagement, ensure a more consistent customer experience, and drive higher sales against lower costs. Domino’s carryout tickets that are ordered online are 25% higher than those ordered over the phone, and are less labor-intensive, which is helpful in a tight labor market.

Domino’s digital capabilities paid off when customers relied upon ecommerce channels during the pandemic. Per Figure 4, retail sales generated through Domino’s digital channel rose from 60% of total sales in 2017 to 75% in 2021. For comparison, McDonald’s systemwide sales from digital channels in 2021 were ~25% of systemwide sales in its top 6 markets.

Figure 4: U.S. Digital Retail Sales as a Percent of Total U.S. Retail Sales: 2017 – 2021

DPZ Digital Sales As Of Total

Equipped to Navigate Pandemic Disruption

Domino’s large digital presence, integrated supply chain, robust delivery service, and carry out capabilities made the company ideally situated to strengthen its market position during the COVID-19 pandemic. While weaker competitors struggled to reach customers during the pandemic, Domino’s market share soared from 1.6% of the global quick service restaurant (QSR) market in 2019 to 2.2% in 2021.

Far from being a recent anomaly, Domino’s strong business model was taking market share long before the pandemic. Per Figure 5, Domino’s grew its share of the global QSR market from 1.1% in 2012 to 1.6% in 2019. A strong business model positioned the company to benefit when other businesses were retreating. This is ground won that Domino’s will not likely give back post-pandemic.

Figure 5: Share of Global QSR Market: 2012 – 2021

DPZ Market Share

Industry-Leading Profitability

Domino’s business model not only generates impressive top-line growth, but it also industry-leading invested capital turns and return on invested capital (ROIC). At 59%, Domino’s trailing-twelve-month (TTM) ROIC is 1.6x its closest competitor. See Figure 6.

The company’s high ROIC isn’t just the result of a one-time pandemic boost either. The company’s 5-year average ROIC is actually slightly higher at 60%. Looking at the entire S&P 500 reveals that only four companies have a higher 5-year average ROIC than Domino’s.

Figure 6: Domino’s Profitability Vs. Peers: TTM

DPZ DuPont Analysis

Steady Economic Earnings Growth

Domino’s continues to create shareholder value as it expands its business. The company has generated positive economic earnings every year since going public in 2004. More recently, Domino’s economic earnings grew from $151 million in 2011 to $627 million in 2021.

Figure 7: Economic Earnings Since 2011

DPZ Economic Earnings

Healthier Eating Is Not a Big Risk

The company’s operation is specifically configured to the mass production of quality pizza, which limits direct competition from most other QSRs. However, such dependence on one product means the company’s success is also tied to the popularity of pizza.

The rise of health consciousness poses a threat to the industry that serves loads of highly caloric carbs, fats, and processed meats. A change in dietary habits toward healthier options could pose a long-term headwind for the industry and its largest supplier. However, this threat is not likely to keep the pizza market from growing. Despite an ever-increasing array of diet and healthy eating options, the American QSR pizza market grew from $35.9 billion in 2016 to $40.6 billion in 2021.

Furthermore, Domino’s experience with innovation means that it can offer better-for-you options, such as gluten-free crust, should consumer preferences shift away from traditionally made pizza.

Rising Costs Could Hurt Margins But Drive More Market Share Gains

Management noted in its 4Q21 earnings call that it expects Domino’s U.S. stores to see up to a 10% increase in its food supply costs. These rising costs will have an immediate impact on stores’ profitability. The company will also feel the negative effects of rising costs as a decline in store profitability will have a “trickle-up” effect on the franchisor. Stores may be forced to promote higher margin items to offset the impact of rising costs, reduce operating hours, or less aggressively acquire staff members which could lead to lower retail sales.

Staffing shortages which will likely continue to be a headwind to store count growth and running sales promotions. The company is more cautious about offering promotions that drive more traffic amidst the present challenges. Stores may not be able to keep up with more business while maintaining quality standards, and Domino’s is hesitant to actively acquire more customers, who may have a less than ideal experience with understaffed stores.

However, all other QSR operators face these same challenges. Domino’s extensive store network, supply chain efficiencies and best-in-class ROIC provide it with strong advantages that will likely drive more market share gains as they did during COVID.

Delivery Service: Long-Term Advantage but Short-Term Problem

The current labor shortage is directly impacting Domino’s ability to execute operations that are heavily dependent on delivery service. A lack of delivery drivers has led some stores to reduce operating hours as the company struggles to provide the delivery capacity to meet demand. The company is leaning on its digital channel and carryout business to assist with navigating these challenges by offering more incentives.

Over the long term, Domino’s delivery capabilities are a major competitive advantage for the company, which I expect will continue to drive more growth, despite current capacity constraints.

Uber Eats and Door Dash Reduce Domino’s Delivery Advantage

I have long argued that third-party delivery services such as Uber Eats (UBER) and DoorDash (DASH) operate broken business models that will fail in the long run, but they still pose a threat to Domino’s in the short-term. DoorDash’s rapid market share gains in the U.S. food delivery market have slowed Domino’s ability to acquire new customers.

The third-party food delivery market has grown remarkably over the past two years. However, leading names in the market - such as DoorDash – achieved their growth unprofitably, which means those market share gains are not sustainable. Eventually, third-party delivery services will need to either increase fees or exit the market. Either way, Domino’s integrated delivery service will be ready to take back lost market share.

Domino’s also offers more ways to fulfill customer orders beyond traditional at-home delivery. Domino’s Pizza’s contactless pickup, which guarantees orders will be placed in the vehicle within two minutes of arrival, and delivery hotspots, offer customers the convenience of multiple fulfillment options.

Over the long term, Domino’s is looking to create autonomous delivery solutions. The company’s partnership with Nuro enabled it to test autonomous pizza delivery vehicles in Houston in 2021. These automated delivery systems would make Domino’s highly efficient business model even more efficient.

DPZ Has 83% Upside If Consensus Is Correct

Domino’s stock is priced for profits to fall from current levels despite its history of growth, superior profitability, industry-leading market share, and numerous growth opportunities. Below I use my reverse discounted cash flow (DCF) model to analyze two future cash flow scenarios to highlight the upside in Domino’s current stock price.

DCF Scenario 1: to Justify the Current Stock Price of $390/share.

If I assume Domino’s:

• NOPAT margin falls to 13% (10-year average vs. 15% in 2021) in 2022 through 2031 and
• revenue grows at just a 1% CAGR (vs. 2022 – 2024 consensus estimate CAGR of 7%) from 2022 – 2031, then

the stock is worth $390/share today – equal to the current stock price. In this scenario , Domino’s earns $610 million in NOPAT in 2031, which is 8% below 2021.

DCF Scenario 2: Shares Are Worth $712+.

• NOPAT margin falls to 14.6% (five-year average) from 2022 through 2031, and
• revenue grows at consensus estimates of 7% in 2022, 8% in 2023, and 7% in 2024, and
• revenue grows at a 3.5% CAGR from 2025 – 2031 (below its 10-year revenue CAGR of 10% from 2011 – 2021), then

the stock is worth $712/share today – an 83% upside to the current price. In this scenario, Domino’s NOPAT grows just 4% compounded annually for the next decade, less than one-third of the company’s 15% NOPAT CAGR from 2011 – 2021, and below Research and Markets’ estimated 4.9% CAGR of the global QSR market from 2022 – 2027. Should Domino’s NOPAT grow in line with historical growth rates or even the global QSR market expectations, the stock has even more upside.

Figure 8 compares Domino’s historical NOPAT to its implied NOPAT in each of the above DCF scenarios.

Figure 8: Domino’s Historical and Implied NOPAT: DCF Valuation Scenarios

DPZ Valuation Scenarios

Sustainable Competitive Advantages Will Drive Shareholder Value Creation

I think the moat around Domino’s business will enable it to continue to generate higher NOPAT than the current market valuation implies. Factors building Domino’s moat include:

• strong brand awareness
• large digital business that increases revenue and decreases labor costs
• superior supply chain efficiency
• integrated delivery service that third party providers cannot replicate
• superior profitability

What Noise Traders Miss With Domino’s

These days, fewer investors focus on finding quality capital allocators with shareholder friendly corporate governance. Instead, due to the proliferation of noise traders, the focus is on short-term technical trading trends while more reliable fundamental research is overlooked. Here’s a quick summary of what noise traders are missing:

• Domino’s is better positioned to manage the labor shortage
• Research and Markets expects the global QSR market to grow at a 4.9% CAGR through 2027
• valuation implies 83% upside if the company grows at consensus estimates

Earnings Beats or Alleviation of Labor Constraints Would Be Welcome News

According to Zacks, Domino’s has beat earnings estimates in eight of the past 12 quarters. Doing so again could send shares higher.

Should Domino’s manage the challenging labor environment better than expected, revenue and profits could soar and send its stock price with them.

Dividends and Share Repurchases Could Provide 6.0% Yield

Domino’s has increased its quarterly dividend in every year since 2012. Since 2017, Domino’s has paid $544 million (4% of current market cap) in cumulative dividends. The firm’s current dividend, when annualized, provides a 1.1% yield.

Domino’s also returns capital to shareholders through share repurchases. From 2017 to 2021, the firm repurchased $4.0 billion (28% of current market cap) worth of stock. The firm has $704 million remaining on its current repurchase authorization. If the company uses its remaining repurchase authorization in 2022, the buybacks will provide an annual yield of 4.9% at its current market cap.

Executive Compensation Plan Needs Improvement

No matter the macro environment, investors should look for companies with executive compensation plans that directly align executives’ interests with shareholders’ interests. Quality corporate governance holds executives accountable to shareholders by incentivizing them to allocate capital prudently.

Domino’s compensates executives with salaries, cash bonuses, and long-term equity awards. Domino’s performance stock units (PSUs) are tied to adjusted total segment income and its global retail sales targets.

Instead of adjusted total segment income or global retail sales, I recommend tying executive compensation to ROIC, which evaluates a company’s true return on the total amount of capital invested and ensures that executives’ interests are aligned with those of shareholders. There is a strong correlation between improving ROIC and increasing shareholder value.

Despite room for improvement in compensation structure, Domino’s executives have delivered shareholder value. Domino’s has grown economic earnings from $270 million in 2016 to $627 million in 2021.

Insider Trading and Short Interest Trends

Over the past 12 months, insiders have bought 14 thousand shares and sold 133 thousand shares for a net effect of ~118 thousand shares sold. These sales represent less than 1% of shares outstanding.

There are currently 2 million shares sold short, which equates to 6% of shares outstanding and just over four days to cover. Short interest increased 20% from the prior month.

Critical Details Found in Financial Filings by My Firm’s Robo-Analyst Technology

Below are specifics on the adjustments I make based on Robo-Analyst findings in Domino’s 10-K:

Income Statement: I made $258 million of adjustments, with a net effect of removing $150 million in non-operating expenses (3% of revenue).

Balance Sheet: I made $187 million of adjustments to calculate invested capital with a net increase of $41 million. One of the largest adjustments was $35 million in operating leases. This adjustment represented 7% of reported net assets.

Valuation: I made $5.6 billion of adjustments to shareholder value for a net effect of decreasing shareholder value by $5.6 billion. Apart from total debt, one of the most notable adjustments to shareholder value was $108 million in outstanding employee stock options (ESO). This adjustment represents <1% of Domino’s market cap.

Attractive Fund That Holds DPZ

The following fund receives an attractive rating and allocates significantly to DPZ:

• O’Shaughnessy Market Leaders Value Fund (OFVIX) – 2.2% allocation

Disclosure: David Trainer, Kyle Guske II, and Matt Shuler receive no compensation to write about any specific stock, style, or theme.

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19 Domino’s India Supply Chain Management: A Case Study on Supply Chain Management

• Published: August 2022
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In the view of business expansion, Domino’s revamped its supply chain operations in India. Initially, Domino’s had a simple logistics model. The case discusses the various benefits of the new logistics model and discusses the reasons for the revamp. The benefit of low costs achieved through the new model was passed on to the customers in the form of lower prices. The case also compares Domino’s new supply chain model with McDonald’s supply chain model.

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• Harvard Business School →
• Faculty & Research →
• December 2011 (Revised September 2017)
• HBS Case Collection

Domino's Pizza

• Format: Print
• | Language: English
• | Pages: 30

About The Author

David E. Bell

Related work.

• January 2013
• Faculty Research

Domino's Pizza (TN)

• Domino's Pizza (TN)  By: David E. Bell and Mary Shelman
• Domino's Pizza  By: David E. Bell, Phillip Andrews and Mary Shelman

How Domino’s manages an excellent supply chain

HIGHLIGHTS OF THE ARTICLE

Dominos has largely managed its supply chain network internally. The company has established 21 regional dough manufacturing and supply chain centers, two thin-crust manufacturing facilities, and one vegetable processing center in the United States. Apart from it, the company has five dough manufacturing and supply chain centers in Canada. Its supply chain network also includes external suppliers with whom the company has formed long-term contracts and strong relationships.

Domino’s supply chain is a separate business segment and accounted for around 59% of the company’s revenue in 2020. A fleet of 900 leased tractors and trailers supports the company’s supply chain operations in the US and Canada. Having its own supply chain networks enables the company to minimize operating costs and maximize profits for its franchisees. Read a detailed analysis of Domino’s supply chain operations below.

A brief analysis of Domino’s supply chain management

Domino’s is one of the most successful QSR restaurant chains in the world. While its core market is the United States, followed by Canada the company has built an impressive presence in 90 markets worldwide. It is the leading brand in the QSR pizza category based on retail sales. The company was founded in 1960 and has achieved a lot of growth in its 60 years of existence.

Domino’s is a well-recognized brand name known for delicious pizza items, product quality, customer service, and great marketing. Its focus on technological innovation to serve customers better and streamline operations has resulted in higher growth. The company achieved more than half of its sales from digital channels during 2020. Worldwide, the popularity of Domino’s pizza has grown driven by the ease of placing orders, growth in brand awareness, and customer experience.

In 2020, the company had 17,644 stores operational worldwide of which more than 95% are run by franchisees. The franchising business model of Domino’s is highly successful. The company has achieved strong brand awareness and its business has proved profitable for both the franchisor and the franchisees.

Importance of Supply chain management in the QSR sector:

In the QSR industry , companies need to manage their supply chains efficiently to maintain their competitive position and market share. Their supply chains are critical to running the business smoothly and achieving higher sales and revenue. QSR companies that have highly resilient supply chains are also among the more successful. Timely availability of raw materials and proper inventory management is critical to maintaining sales and growth momentum. 

Market-leading brands like McDonald’s , KFC , Domino’s, and Subway have embedded safer and innovative supply chain management practices into their organizational cultures. The companies in the QSR sector that did not focus on supply chain management since the beginning failed to derive super growth. Managing product quality depends on a QSR brand’s supply chain’s efficiency. A QSr brand needs to focus on the entire supply chain, which is one of the most critical parts of its value chain. From sourcing to storage, and delivery to stores, every stage of supply chain management requires proper attention to maintain the system’s efficiency.

Domino’s supply chain management:

Domino’s pizza internal supply chain.

Domino’s has achieved the leading position in the QSR pizza sector through a firm focus on managing its product quality and customer service. However, the growth of the company in its leading markets including the US and Canada is supported by its supply chain. The supply chain of Domino’s is a separate business segment that is also the leading source of revenue for the company and generated around 59% of the company’s revenue in 2020. The company has been building supply chain capabilities and fine-tuning its supply chain efficiency over the last four decades.

Domino’s business is run mainly by its franchisees worldwide. It operates only 363 company-owned stores in the US (as of 2020). In the Us and Canada, it supports the operations of the company-owned stores and franchised stores by supplying key ingredients for making pizzas. While on the one hand, this ensures that the required raw material for making pizzas is always available to the Domino’s stores in the US and Canada, on the other it also reduces the company’s dependence on external suppliers. This has helped the company manage operating expenses better and maximize profits for the company and its franchisees. 

Domino’s operates 21 regional dough manufacturing and supply chain centers in the U.S., two thin-crust manufacturing facilities and one vegetable processing center in the U.S., and five dough manufacturing and supply chain centers in Canada. While this has not totally eliminated the need for external suppliers, it has still reduced the company’s dependence on external suppliers and serves as critical strength for the company helping it manage its costs better and grow its profitability.

The company has leased a fleet of around 900 tractors and trailers to support its supply chain operations. Domino’s has established a strong supply chain and plans to continue to invest in supply chain operations to grow its supply chain capabilities. Growing its supply chain capabilities can help the company manage the growth of its business faster in future.

The Domino’s supply chain centers in the US and Canada apart from producing fresh dough and supplying to stores in the US and Canada also work as sourcing centers.  Domino’s purchases, receives, stores and supplies with fresh food and complementary items to substantially all of its stores in the US and majority of stores in Canada from its supply chain centers. The company supplies more than 6800 stores in the US and Canada with fresh foods and other supplies. 

Domino’s franchisees are not bound by any agreement to purchase raw materials from the company. If they choose they can purchase foods and other supplies from external suppliers. The key reason behind purchasing from Domino’s is that it supplies good quality raw materials at competitive prices. Domino’s offers both quality and consistency. It offers the most convenient, efficient and cost effective alternative which makes the franchisees choose Domino’s as their core supplier.

 The company has also entered into profit sharing arrangements with the stores that buy all of their food from its supply chain centers. As a part of these profit sharing arrangements, the participating stores receive 50% of the pretax profits from Domino’s supply chain operations. This arrangement has also helped the company strengthen its ties with the franchisees.

External suppliers of Domino’s Pizza:

The company has also maintained long standing partnerships with external suppliers. A large part of Domino’s annual food spend goes to external suppliers. The company has set strict quality standards for its third party suppliers. It is done to ensure food quality and product safety. Its external supply chain partners are a part of a quality assurance program that ensures systemwide quality. The company carries out on site visits, third party audits and product evaluations to ensure that its supply chain partners are complying with its quality standards.

Maintaining  long term and solid partnerships with its third party supply chain partners enables the company to source good quality products at competitive prices.

Cheese comprises the largest food cost of the brand in the United States. The company currently sources all its US pizza cheese from a single supplier. It entered into an agreement with its US cheese supplier in 2017 to ensure an uninterrupted supply of cheese. As a part of this agreement, the company has agreed to a seven-year pricing schedule to buy all of the suppliers’ cheese.

The company also sources the majority of its meat toppings from a single supplier in the US. The contract between the company and its leading meat supplier will remain in place till June 2022. However, the company can also terminate these agreements in case of quality failures and other breaches.

Another leading third-party supplier for Domino’s is Coca-Cola . The company has renegotiated its existing agreement with Coca-Cola in 2019. As a part of this agreement, Coca-Cola will continue to remain the sole beverage supplier of the company till 2023. While the agreement expires in 2023, Coca-Cola can continue to remain its sole beverages supplier even after the term of the agreement is over. In the Indian market, however, the beverage partner of Domino’s is Pepsico .

Domino’s continues to evaluate its sourcing strategy to make improvements and implement the most optimal strategy that can support faster growth. It has alternative suppliers for the above-discussed products as well. However, the company will continue to maintain strong relationships with its existing suppliers, who supply good quality products at competitive prices. The company has not experienced any significant supply shortages or delays in the past. While the prices charged by Domino’s supply chain partners can fluctuate, the company has been able to pass on the increased costs to the stores in the past.

A few last words:

Winning in a hyper-competitive market environment requires companies to focus on supply chain management. Supply chain excellence can be the most critical step to winning even for the QSR brands. Industrywide all the leading brands whether in retail or in automobile segment, have maintained their leadership positions through supply chain excellence. Walmart is the most shining example of how retail brands can rule if they focus on supply chain management. What the best brands do is to make it a core part of their DNA.

Domino’s is a leading pizza brand and popular worldwide because of its product quality. However, maintain excellent quality could not be possible if Domino’s had not focused on managing its supply chain. Throughout the QSR sector , most brands have outsourced their supply chains. On the other hand, Domino’s in both its leading markets including the US and Canada has taken charge of supply chain management itself.

This has helped the company strengthen its position in both the main markets and build a superior sales network that benefits from a centrally managed supply chain network. The company owned stores as well as the franchised stores in both the US and Canada benefit from the supply chain. Apart from helping the company and its franchisees manage costs with efficiency, the supply chain has helped them maintain their popularity and demand.

Supply chain efficiency and excellence are critical to success in the QSR industry whether you are managing its yourself or outsourced your supply chain to external partners. In both the cases, QSR brands can rely on digital technology to grow the efficiency of their supply chains. Domino’s has a highly resilient supply chain, which was proved during the pandemic. Domino’s experienced excellent growth in sales and mostly through digital channels. However, its supply chain played a very critical role in helping the company survive the impact of the pandemic with ease.

Abhijeet Pratap is a passionate blogger with seven years of experience in the field. Specializing in business management and digital marketing, he has developed a keen understanding of the intricacies of these domains. Through his insightful articles, Abhijeet shares his knowledge, helping readers navigate the complexities of modern business landscapes and digital strategies.

Operation Strategy Overview- Dominos

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7 facts From Domino’s Supply Chain

I believe everyone on Earth has certain goal in their life. I also believe anyone can achieve this if they have their mind to do it. – Tom Monaghan

These were the words said by the founder of Domino’s Pizza, Tom Monaghan. We all are aware of the famous pizza brand dominos but do we know its success story?. Let us look at dominos supply chain which played an important role in its success .

In 2014, Domino’s generated dollars 1.9 billion of revenue of waste, 62% was from selling the ingredient to its franchisees supply chain management. Although most of us think of Domino’s as a pizza company, the company majorly relies  on its efficient logistics. Domino’s supply chain is divided into three main tires. The Tier 2 is comprised of key suppliers that ship ingredient to Domino’s distribution center. Tier 2 includes 9 foods, cheese Suppliers, 3 Paradise tomato sauce suppliers, 38 ardent mill floor suppliers and two Domino’s thin crust bread and Veggie Suppliers Center. Tier 2 suppliers, pizza ingredients, cheese, tomato sauce, flour, thin crust, bread to Tier 1 is comprised of 16 domino distribution centers that supply all ingredients to each of the stores in US.

Key Takeaways

7 things to learn from Domino’s supply chain

1. centralized supply chain.

Domino’s case studies showed that centralized supply chain is highly effective from the point of launching new projects. One of the best evidence from this assumption is the company successful rolling out new recipes.

2. External suppliers

The company has also maintained longstanding partnership with the external suppliers, a huge part of dominos food goes through the external supplier. The company has set strict quality standards for the third party supplier. It is done to ensure the food quality and Product Safety. Its external supply chain partners are part of quality assurance program that ensures systemwide quality.

Leader’s Tip Leverage technology and data-driven insights to streamline supply chain operations, increase transparency and improve customer experience.

Hand picked for you – Best 22 Peter Drucker Books To Read

3. Great service

Domino’s offered guarantee to customer that their visa would be delivered within 30 minutes of missing an order or they would receive the pizza free. This is amazing considering the fact that they have made have to make a custom made pizza package and deliver it all in 30 minutes.

4. Product quality

Domino’s is a leading pizza brand, popular word wide because of its product quality. However, maintained excellent quality could not be possible if Domino’s had not focused on managing its supply chain throughout the QSR sector and  now Most brands have outsourced their supply chains.

5. Technology For Franchisee operations

Pizza Tracker or like the company trademarks it, Domino’s Tracker was a revolution in the foodservice industry .The tracker was introduced in 2008 by which the customers were able to track there order right after they place it . The technology let the franchisees enhance operational transparency.

6. Dominos digital marketing

Domino’s Pizza uses both organic and paid searches to enhance its brand’s presence on search engines. And the company is in good times when it comes to marketing online.

In terms of search engine marketing, the company gained vast sales success using paid search. It utilised smart ad auction strategies on Google and took primacy of Google’s machine learning algorithm.

Both the SEO and SEM strategies of Domino’s desires at selling. When you visit the Indian website or of any other country’s, you will see their menu and two call-to-action buttons. You can order straight from the desktop or download the app.

Leader’s Tip Focus on continuous improvement by regularly evaluating and adjusting your supply chain strategy to meet changing market demands.

 7. Fortressing Strategy

To reach out to more consumers, Domino’s Pizza utilizes a fortressing strategy. This means that it lessen the delivery radiuses and puts more stores nearby. It operates mainly with in-house delivery executives rather of relying on third-party online food delivery apps.

Such a step helps the company by providing “more flexibility and control over pay and the customer experience”, as mentioned by the CFO, Stu Levy.

This has helped the company nourish its position in both the main markets and build a superior sales network that benefits from a centrally managed supply chain network. The company owned stores as well as the franchised stores in both the US and Canada benefited from the supply chain. Apart from helping the company and its franchisees manage costs with efficiency and effectively, the supply chain has helped them maintain their popularity and demand.

What is QSR ?

QSR simply means quick serving restaurant.

What is dominos digital marketing strategy ?

Domino’s Pizza uses both organic and paid searches to enhance its brand’s presence on search engines. And the company is in good times  times when it comes to marketing online. Both the SEO and SEM strategies of Domino’s desire at selling. When you visit the Indian website or of any country’s, you will see their menu and two call-to-action buttons. You can order straight from the desktop or download the app.

Streamlined and integrated Supply chain operations enable faster delivery, ensuring customer satisfaction and loyalty. Efficient inventory management and centralized distribution centers minimize costs and improve operational efficiency. We value transparency and cooperation with our suppliers and partners to foster strong relationships and ensure a reliable supply chain network. 

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Domino's Case Study | Pizza Chain Dominating in India

Today, the fast-food industry has now become our priority partner in every situation of life. Many of the fast foods brands have taken the name of the fast food like McDonalds is our burger, Coke is our soft drink, same way Dominos is our pizza. While many of the fast-food businesses are struggling to get recognition, the companies like Domino's, has now become brands with its taste and quality of pizza for their prominent and potential customers. Let use see the complete story behind the Dominos success.

Domino's - Startup Story Domino's Entry in India Challenges Faced by Domino's in India Domino's Strategic Business Model Domino's Revenue and Growth Reason for the Success of Domino's Pizza Domino's Future Plans

Domino's - Startup Story

It was in 1960, when Tom Monaghan and his sibling, James, assumed control over the activity of DomiNick's, a current area of a little pizza café network that had been claimed by Dominick DiVarti, at 507 Cross Street (presently 301 West Cross Street) in Ypsilanti, Michigan, close to Eastern Michigan University.

The arrangement was verified by a $500 initial installment, and the siblings obtained $900 to pay for the store. Within eight months, James exchanged his half of the business to Tom for the Volkswagen Beetle they utilized for pizza deliveries.

Monaghan needed the stores to have a similar marking, yet the first proprietor disallowed him from utilizing the DomiNick's name. At some point, a worker, Jim Kennedy, came back from a pizza conveyance and proposed the name "Domino's". Monaghan quickly cherished the thought and authoritatively renamed the business Domino's Pizza, Inc. in 1965.

The organization logo initially had three dabs, speaking to the three stores in 1965. Monaghan intended to include another spot with the expansion of each new store, yet this thought immediately blurred, as Domino's accomplished fast growth . Domino's Pizza opened its first establishment area in 1967 and by 1978, the organization extended to 200 stores.

Domino's Entry in India

Jubilant Foodworks started its business under the name Domino’s Pizza India Private Limited in 1995 and opened the first outlet of Domino’s Pizza in 1996.

In the first quarter 2014, Jubilant Foodworks inaugurated the 700th Domino’s Pizza outlet, and in the next 24 months, they went on to open 300 more outlets, making India only the second country after the United States to reach the 1000 store-mark for Domino’s Pizza.

After being in operation for over 20 years now, Jubilant Foodworks has over 1000 Domino’s Pizza outlets in India and 20 outlets in Sri Lanka while holding contracts for both Bangladesh and Nepal. The company aims to double its outlets by 2021.

In 2011, Jubilant Foodworks signed a franchise agreement with Dunkin’ Donuts , an American coffee, and donuts chain to open its stores in India, the first of which opened in 2011.

Challenges Faced by Domino's in India

In January 2016, Domino's opened its 1000th outlet. In 2016, Center for Science and Environment(CSE) revealed that their pizza bread were bound with poisons and cancer-causing agents, for example, potassium bromate and potassium iodate. Domino's did not react to the CSE questions Potassium bromate is a Category 2B cancer-causing agent, which means it can cause liver cancer. In 2017, live bugs were found in Domino's pizza flavoring sachets in Delhi, a video of which went viral. This provoked Domino's to quit giving flavoring sachets for quite a while. When they restarted, they changed the pressing from straightforward to obscure.

Domino's Strategic Business Model

The organization's present direction can be followed back to 2010, when Domino's patched up its pizza formula and propelled a striking " Goodness Yes We Did " crusade that got itself out for having a dreary item.

Since, systemwide deals have bounced from $3.1 billion to $5.9 billion of 2017. The organization's methodology has aroused financial specialist intrigue, as well. It's putting it mildly to state that Domino's has been having some fantastic luck recently. While a significant part of the business has been level to marginally positive, the pizza mammoth has posted income development above 20% for as far back as 75%, and has encountered 30 successive quarters of same-store deals development.

On account of this reliable advancement, Domino's outperformed Pizza Hut in 2017 to turn into the nation's biggest pizza chain by deals, despite the fact that it has around 2,000 less residential units.

Domino's is anticipating $25 billion in yearly deals all around by 2025 – twofold its 2017 offers of $12.25 billion – just as 2,000 new U.S. stores inside that time allotment.

Domino's Revenue and Growth

Domino’s Pizza generated a revenue of 4.36 billion U.S. dollars worldwide in 2021.

The principal source of income for Domino's is its inventory network which records for the most noteworthy piece of its whole income. Aside from that the sovereignty and expenses it gets from its franchisees are the second biggest wellspring of pay for the brand. Domino's likewise worked a set number of stores in the US advertise. The Inventory network of Domino's takes into account certain Domino's franchisees and the organization working stores in US and Canada. In 2018, the supply chain section of Domino's represented around 57% of its income. It produced about 1.94 Billion US dollars in income. The rest of the sources including eminences and charges from the US and worldwide franchisees just as deals in the organization worked stores created about 1.5 Billion US dollars in incomes. Domino's inventory network works 19 local mixture assembling and sustenance store network focuses in US and 5 batters assembling and nourishment production network focuses in Canada.

Reason for the Success of Domino's Pizza

Following are the factors of the success of dominating pizza company, Dominos:

Adaptability to Digital and Online Mediums

While the kitsch of the stove vehicle may not speak to each financial specialist, Domino's has made a striking showing on the innovation front. It's forceful in making ways for clients to put in their requests on different stages, including keen TVs, Ford Motor Co. (F) vehicles, and on Twitter through emoticons . A ravenous client doesn't need to look into the number and call – he can arrange a pie on a smartwatch or over a plain exhausting Internet program. "They have a greater number of approaches to get to the brand than contenders," says BTIG overseeing chief of cafés Peter Saleh. Be that as it may, smaller organizations have fewer assets to adjust to changing innovation and requests, which gives Domino's a bit of leeway. Domino's gains 55 percent of U.S. deals through requests on the web or by means of versatile stages, says Stephen Andersen, an investigator at New York City speculation firm Maxim Group. Furthermore, it's getting up to speed with Pizza Hut's piece of the overall industry. Domino's expanded its piece of the pie from 9 percent to 12.3 percent in 2014, while Pizza Hut slipped from 14.7 percent to 14.4 percent.

Some inexpensive food chains are attempting to one-up one another with regards to evaluating fast suppers. Wendy's Co. (WEN) dismissed things from a year ago with a four-for-$4 bargain. Others went with the same pattern, including Carl's Jr. Eatery Brands International-possessed Burger King (QSR) and even Pizza Hut. Domino's has done little to respond to this pattern. "The heft of the cheap food endeavors are at breakfast or lunch," says Longbow Research expert Alton Stump. "There's not as much direct presentation" for Domino's. Genuine, Dominos offers some menu things for $5.99 (on the off chance that you purchase at least two), yet Pizza Hut offers a comparative, lower-cost alternative . Ease contributions tend to cut into net revenues, however Dominos has been invulnerable with that impact – truth be told, incomes have bounced 23 percent since the organization presented its ease menu in 2013.

Untapped Markets

Just 7 percent of Domino's business originate from nations outside the U.S., including the U.K., India, and South America. In any case, this is the place financial specialists see the most potential pushing ahead. "It's a long haul plan, yet there's still a great deal of topography out there," Andersen says. The organization saw a 11.7 percent bounce in the quantity of stores in 2015, and hopes to include somewhere in the range of 7 and 8 percent every year for a long time to come. One zone it's just starting to infiltrate is China. Pizza Hut has had the main mover advantage in the nation and Yum is planning to turn off its China-centered business . Be that as it may, while Pizza Hut has built up a to a greater extent a bistro-like methodology in China, Domino's can concentrate on conveyance. Furthermore, there's space to develop – Dominos has just a bunch of stores in China, however, Andersen guesses it could have more than 1,800 by 2030.

Domino's Future Plans

Domino's is the main Pizza brand with solid universal nearness. Its income has likewise risen strongly over the most recent five years. By 2025, the organization expects a systemwide number of cafés to have developed over 25,000 stores. The fundamental focal point of the organization is quality and client accommodation. This has prompted solid brand value in the US and global markets separated from high deals, client dependability, and by large ubiquity. Interest for Pizza around the globe is developing and it introduces an appealing open door for Domino's.

With over 1000 outlets in India and every outlet offers the same tasty pizzas that everyone loves, Dominos has shown everyone that standardization of taste and quality is very well achievable no matter how big the enterprise is. With over 1000 stores in just over 20 years and the goal of 1000 more in another 5, Domino’s India has shown what it looks like to be successful.

The new and improved pizza has indeed struck the right chords with the customers, and hopefully will re-establish Domino’s India as the ultimate pizza brand in the country.

When did Domino's open in India?

Domino's entered India in 1996.

Where was the first Domino's Pizza store in India?

The first Domino's Pizza store was opened in New Delhi.

What is Domino's annual revenue?

Domino's generated a revenue of $4.36 billion in 2021.

What is Domino's market share in India?

Domino's is the market leader in the organized pizza market with a 50% market share and 70% share in the Pizza home delivery.

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Domino's Pizza Case Study

This is the analysis of Domino's Pizza HBR case study. The analysis is mainly from the Logistics point of view

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Case Details Case Intro 1 Case Intro 2 » Operations Case Studies » Case Studies Collection » ICMR HOME » Operations Short Case Studies » View Detailed Pricing Info » How To Order This Case » Business Case Studies » Case Studies by Area » Case Studies by Industry » Case Studies by Company Case Code : OPER005 For delivery in electronic format: Rs. 300; For delivery through courier (within India): Rs. 300 +Shipping & Handling Charges extra Supply Chain Management Case Length : 10 Pages Period : 1999 - 2003 Organization : Domino's Pub Date : 2003 Teaching Note : Available Countries : India Industry : Food, Beverage and Tobacco The case gives an overview of Domino's revamped supply chain operations in India. It discusses the various benefits of the new logistics model and discusses the reasons for the revamp. The benefit of low costs achieved through the new model was passed on to the customers in the form of lower prices. The case also compares Domino's new supply chain model with McDonald's supply chain model. » Analyze the supply chain of an other fast food company and compare it with Domino's supply chain model   Page No. 1 1 3 7 Case Studies Links:- Case Studies , Short Case Studies , Simplified Case Studies . Other Case Studies:- Multimedia Case Studies , Cases in Other Languages . Business Reports Link:- Business Reports . Books:- Text Books , Work Books , Case Study Volumes . 423 IMAGES Domino’s Case Study: Supply Chain and Competitive Advantage Case Study: Business Model Of Domino's Pizza (DOCX) Dominos India Supply Chain Case Study (PDF) Domino's Pizza Supply Chain Management Supply Chain Practices At Domino’S Domino's Pizza Case Study: Strategic Management VIDEO 4flow challenge U.S.A Secrets of E-Commerce and Supply Chain Effective supply chain risk and crisis management strategies to overcome unplanned events Supply chain of dominos pizza services in India ....by-sid@6468 How Domino's Killed Competition and Became So Successful DHL Supply Chain Case Solution & Analysis- TheCaseSolutions.com COMMENTS Supply Chain In 2014, Domino's generated $1.9 billion dollars of revenue of which 62% percent was from selling the ingredient to its franchisees supply chain management [10]. Although most of us think of Domino's as a pizza company, the company is dependent on its efficient logistics. Domino's Supply chain is divided into three main tiers. Tier2 is… Domino's Pizza : Case Study 1. Introduction. Domino's Pizza, Inc. is a global leader in the pizza delivery industry. This case study examines Domino's business model, market strategies, operational efficiency, financial performance, challenges, and future prospects, tailored for MBA students. 2. Company Overview. Founders: Tom Monaghan and James Monaghan. Founded: 1960. Case Study Intro The Domino's Pizza Supply Chain Case Study The Domino's supply chain and distribution system case study will be used as a means for teaching, improving, and refining your skills in the application of linear and integer optimization. Much of the details and data associated with this case study has been consolidated from publically available data. … Domino's Case Study: Supply Chain and Competitive Advantage Domino's case study showed that centralized supply chain is highly effective from the standpoint of launching new projects. One of the best evidence for this assumption is the company's successful rolling out new recipes. The principal benefit of the centralized supply chain system is that all the stores are sure to use the same ingredients ... Digital Transformation story of Domino's 2008: Domino's launched its " Pizza Tracker " technology to keep customers updated on the progress of their order. The technology allows Domino's to extend its centralized services such as supply chain management and IT to its franchisees, thus simplifying the franchise's operations and improve cost management. Domino's Pizza: Delivering A Superior Business Model Domino's is thought of as a restaurant chain, but the company owns just 2% of its stores. The company generates revenue from franchise royalties and its supply chain operations in the United States. Domino's India Supply Chain Management: A Case Study on Supply Chain The case discusses the various benefits of the new logistics model and discusses the reasons for the revamp. The benefit of low costs achieved through the new model was passed on to the customers in the form of lower prices. The case also compares Domino's new supply chain model with McDonald's supply chain model. Domino's Pizza Abstract. Domino's Pizza is the world's second-largest pizza company with 9,436 stores globally, 95% of which are franchised. Domino's franchisees in the U.S. market were able to purchase fresh dough, cheese, pizza toppings, and other menu ingredients and store supplies directly from the company-owned supply chain system. When commodity prices ... How Domino's manages an excellent supply chain A brief analysis of Domino's supply chain management. Domino's is one of the most successful QSR restaurant chains in the world. While its core market is the United States, followed by Canada the company has built an impressive presence in 90 markets worldwide. It is the leading brand in the QSR pizza category based on retail sales. Domino's India Supply Chain Management: A Case Study on Supply Chain Download Citation | Domino's India Supply Chain Management: A Case Study on Supply Chain Management | Volume VII of Indian Business Case Studies book is divided into three interesting sections ... (PDF) Operation Strategy Overview- Dominos named as Dominos supply chain services - a fully owned subsidiary, which supplies the dough, raw materials (the condiments, and ingredients that go into the food products), the kitchen equipment ... 7 facts From Domino's Supply Chain 7 things to learn from Domino's supply chain. 1. Centralized supply chain. Domino's case studies showed that centralized supply chain is highly effective from the point of launching new projects. One of the best evidence from this assumption is the company successful rolling out new recipes. 2. Domino's Case Study Domino's likewise worked a set number of stores in the US advertise. The Inventory network of Domino's takes into account certain Domino's franchisees and the organization working stores in US and Canada. In 2018, the supply chain section of Domino's represented around 57% of its income. It produced about 1.94 Billion US dollars in income. (PPT) Domino's Pizza Case Study Domino's Pizza Case Study. This is the analysis of Domino's Pizza HBR case study. The analysis is mainly from the Logistics point of view. A retail franchisor needs growth capital so that the brand continues to grow and franchisor-franchisee relations remain strong. However, access to corporate liquidity to fund such franchise growth options ... Domino's Pizza Case and Defect Management; Ask the Community; Services & Consulting ... In business since 1960, Domino's Pizza is now the largest pizza company in the world, serving millions of customers online and at 20,000+ stores in 90 global markets. ... Every day, Domino's funnels data from internal supply chain and staffing systems, sales and orders ... Domino's India Logistics Management|Operations|Case Study|Case Studies The case gives an overview of Domino's revamped supply chain operations in India. It discusses the various benefits of the new logistics model and discusses the reasons for the revamp. The benefit of low costs achieved through the new model was passed on to the customers in the form of lower prices. The case also compares Domino's new supply chain model with McDonald's supply chain model Domino's Supply Chain Case Study Domino's Supply Chain Case Study. 1.0 Executive Summary Supply Chain refers to the flow of products or services start from the point of origin from the supplier to end consumer (Investopedia, 2003). Supply chain management refers to the design and management of seamless, value added processes across organizational boundaries to meet the needs ... essay homework paper phd project resume review speech study thesis