Domino's Pizza: IT a key competitive advantage

Abroad, a 'scale game'

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In Domino’s fast-growing international division, digital ordering also accounts for about one-third of total sales, which is about equivalent with the United States, Vasconi said. But nine markets exceed that percentage of digital sales, and three countries derive more than half of their sales from digital orders.

Highlighting how international expansion would benefit from such capability, Doyle noted that Domino’s is one of only seven U.S.-based companies — along with Subway, McDonald’s, Yum! Brands Inc., Starbucks, Burger King and Dunkin’ Brands Inc. — with the brand recognition and infrastructure to grow in markets around the world.

“For whatever reason, the global players are those six public companies and Subway, and there are no big players based outside the U.S.,” he said. “So when people ask when does the local competition grow up and start giving you problems in Asia, the answer is, they’re just not there. This is a U.S.-based-company game today.”

In 2012, Domino’s hit several important milestones, including its 10,000th store worldwide and its 5,000th outside the United States. India surpassed 500 stores, the United Kingdom opened its 700th, and Turkey reached its 250th.

Ritch Allison, the company’s executive vice president of international, noted that Domino’s has increased its market share in the fight for business outside the United States, from 3.5 percent of that pie through 2010 to 4 percent at the end of 2011. The brand’s share of international delivery sales grew from 10.7 percent in 2010 to 12 percent in 2011.

Over the next 10 years, Allison added, total growth in pizza sales outside the United States is projected to grow an additional $30 billion, with delivery-carryout sales accounting for $13 billion of that total. Emerging markets will drive that growth and account for $18 billion of the incremental sales.

In addition to leveraging its technology advantage, he said, Domino’s also would continue to support its master franchisees in international markets by matching high-potential corporate employees with those international operators and identifying opportunities where established franchisees can take on new territories.

“The key enabler of growth in any market is having strong leadership in place,” Allison said.

Contact Mark Brandau at mark.brandau@penton.com
Follow him on Twitter: @Mark_from_NRN