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Company Feature: Domino’s Shows Pizza Tech Is The Future.

With 15, 000 locations in 85 countries, Domino is considered the pizza mogul and one of the most famous fast-food chains in the world. They deliver more than 3 million pizzas daily and are the most-chosen pizza franchisor not only in the US but in several European countries as well. They are the perfect example of what good incorporation of big data analytics, AI, and other technological advancements can do to your company.

Development Of Domino’s And Importance Of AI

The development that Domino’s has undergone within the last decade illustrates the importance of big data analytics and incorporating AI and other technological advancements into the company’s strategy. From 2009 till 2018, Domino’s have doubled their market share, and continue to increase their influence, being one of the few companies in its industry that did not suffer extensively due to the Covid-19 pandemic.

What some may not know is that just a decade ago, Domino’s was on a slippery slope and struggled massively to gain their market share. The company was forced to reinvent all of its operations and the main driving force was digitalization.

Digitizing Entire Structure Of The Company

They have not only digitized their supply chain but the marketing, PR, R&D, and the overall structure of the company. In the span of 10 years, Domino’s went from a struggling, once great pizza parlor to gaining the status of “Apple of food”. Thus, they are the first company we decided to portray in our company feature series. In the bi-weekly articles, we will give you insights into the global companies of different sizes that have had a successful digital transformation and are now the leading force in their industry. 

Domino’s has spent the last decade upgrading its digital transformation and has since created a competitive advantage based on that factor. Starting with the ways in which their customers can order a meal which is genius in its simplicity.

From dozens of platforms such as Facebook, Snapchat, Instagram, Whatsapp, and Slack to tools such as Alexa, Apple HomePod, SmartWatch or Smart TV, the AnyWare software lets customers order pizza in a variety of ways.

Importance Of Big Data

What’s in it for Domino’s? A huge amount of data that allows them to gain a deep insight into their customers’ preferences. They can estimate age, income, preferences, interests, and even factors as specific as which member of the household usually orders pizza and what are the flavor preferences of each family member. 

Dan Djuric, the Vice President of Domino’s said, “Dominos AnyWare literally translates to data everywhere, ultimately we start to build this unified customer view, measuring consistent information across our operational and analytic layers.”  

Another way for Doyle to gather useful data is the loyalty rewards program that has been added in 2015, called “Piece of the Pie”. The Piece of the Pie reward app is used by Domino’s in a very clever way in terms of gathering data, not only about their customers and their preferences but also the competition.

To illustrate, in 2019, Domino’s has widely advertised a limited 12-week offer that worked in a way that all the members of the Piece of the Pie program would receive 10 points weekly for a picture of a pizza. It did not have to be Domino’s pizza, it could be homemade pizza, pizza toy, a slice of pizza from a parlor at the subway station, the possibilities were endless. For 60 points, members would get a free medium pizza. 

Thousands of pictures were submitted to the app each week and due to the AI software that Domino’s used, the pictures could be thoroughly analyzed. The software allows for a detailed enough analysis that when the shape, color, and structure were visible, Domino’s could gain information about the toppings, crust type, etc. As a result of that, they gained another valuable insight into their customers’ habits and preferences when it comes to pizza which can help them in adjusting their offer and perform a customer segmentation that makes it easier for them to target and customize their offers to specific clusters of customers. 

316% Increase Of Strock Price

Because of innovations like that, From 2013 to 2018, Domino’s stock increased from $60 per share to $250 per share which amounts to a 316% increase. Since then, the growth has continued and while most of the food industry is struggling with the impact of Covid, the stock price of Domino’s is currently at almost $400 per share and experts claim that the data analytics and implementing the results in their strategy is a huge part of their success in the latest years.

Experimenting With Tech Advanced Used Experience

Domino’s is continuously experimenting in order to improve the user experience and enlarge its competitive advantage. They have been trying out a delivery method that utilizes a car with a built-in oven that allows the driver to deliver 80 pizzas in one drive, not only saving time but also decreasing the carbon footprint.

Use Of Autonomous Vehicles

In 2018, they have started a cooperation with Ford Motor to research how the customers react to self-driving vehicles when it comes to pizza delivery, focusing on the last 15 meters of delivery when customers need to pick up the food from the car. Thus, they are innovating their whole supply chain and incorporating the newest AI innovations and strategic cooperations that will let them embrace the perks of big tech.

Overall, Domino’s is a great example of a company that reaches the top after being close to bankruptcy, due to its investment in digital transformation, big data analytics, and AI. That is not to say that such a transition always ends positively. Quite the opposite, a lot of companies fail due to different reasons.

If you don’t want to miss out on any of the Company Feature series where we will feature both big and small companies on their digital disruption, remember to follow our social media channels. That way, you will stay on top of all of our exclusive series.

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