Domino’s Pizza Empire Was Built on Delivery. Now, That May Not Be Enough
Domino’s Pizza Empire Was Built on Delivery. Now, That May Not Be Enough | The Economics Of | WSJ
Domino’s dominates U.S. pizza sales, thanks in part to its innovations in delivery. But now, a shortage of delivery drivers is challenging this foundational part of its business.
History
Domino’s Pizza is a multinational pizza restaurant chain founded in 1960 by Tom Monaghan and his brother James in Ypsilanti, Michigan. The chain is headquartered in Ann Arbor, Michigan, United States, and has locations in more than 80 countries worldwide.
The company’s history began in 1960 when Tom and James Monaghan purchased a small pizza store called DomiNick’s in Ypsilanti, Michigan. After eight months of running the store, James traded his half of the business to Tom for a Volkswagen Beetle. Tom renamed the store “Domino’s Pizza, Inc.” in 1965 and began expanding the chain through franchising.
Delivery Strategy
Domino’s is known for its fast delivery times, a crucial part of its business strategy. The company’s delivery secret is its “30 minutes or less” guarantee, which promises that customers will receive their orders within 30 minutes of placing an order, or the Pizza will be free. This guarantee helped the company build a reputation for fast and efficient delivery.
However, in the 1990s, the company was forced to drop the 30-minute guarantee due to concerns about safety and the risk of accidents caused by delivery drivers rushing to meet the deadline. Domino’s continues to focus on fast delivery times but no longer guarantees delivery within a specific time frame.