Officials for Ann Arbor, Mich.-based Domino’s Pizza said the chain is leading the pizza category in same-store sales growth so far this year — due not to splashy new-product news but rather to steady messaging around value and its Handmade Pan Pizza, which launched last fall.
The company’s 6.7-percent increase in domestic same-store sales powered double-digit gains in revenue and net income in the June 16-ended second quarter. Domino’s consistent promotion of the new pan pizza and of deals around the $5.99 price point that have anchored its value proposition over the past few years is a sharp contrast to its largest competitor, Pizza Hut, whose leaders recently said they would shift advertising back toward steady value promotion.
Aside from helping to produce robust traffic during the second quarter, continuity allows Domino’s corporate chefs to take their time developing and refining menu items that produce meaningful results and not rush products to market, chief executive Patrick Doyle said during the 10,440-unit chain’s earnings call.
“We’ve developed a bigger brand message around transparency and consumer engagement that we believe is carrying us to a different place,” Doyle said. “We believe this is part of why we don’t need constant new-pizza news or limited-time products to drive our business.”