What is in this article?:
- Domino‚Äôs streamlines menu rollouts, puts focus on digital
- Streamlining new menu launches
CEO Patrick Doyle said that new digital innovations allow for fewer, more impactful food rollouts.
Domino’s Pizza Inc. is pulling back on its menu rollouts and putting a new focus on digital innovations that improve customer experience, according to chief executive Patrick Doyle.
Going forward, new product news coming from the chain will not be limited to menu items, Doyle said during a call to discuss results for Domino’s Sept. 8-ended third quarter.
“We’re running national television [ads] talking about the speed and ease of ordering digitally from Domino’s, which is not something we’ve taken head-on before,” Doyle said. “We’ve still got a very good pipeline out there, but we’re not in the ‘product of the month club’ anymore. We’re building momentum by focusing on fewer, bigger things that truly enhance the experience for the customers.”
He pointed to the chain’s current push for customers to create “pizza profiles” on its digital ordering platform, which now accounts for about 40 percent of its orders in the United States. The updated system aims to streamline the ordering process and improve guest satisfaction levels by letting customers save their favorite orders and place those orders faster on subsequent visits.
Such innovations helped drive a 5.4-percent increase in Domino’s U.S. same-store sales during the third quarter, said Doyle.
“The easier we make it for people to order pizza, the more pizza they’re going to order, simple as that,” he said. “In restaurant industry terms, when you improve service times, good things happen in your business. … When you get somebody to sign up and fill out a profile and enter their credit card so they can access that again, once somebody’s gone to the trouble of doing that, you’ve upped the relationship with that customer. It’s going to have a good effect on sales, we hope.”
All the metrics Domino’s tracks per order improve with digital ordering, he said. Customer retention has increased, for instance, as guests migrate online because their satisfaction levels rise, which also leads to higher frequency and average check per order.
Domino’s has even more room for growth outside the United States for the adoption of digital ordering, which is one reason the company is so bullish on international growth, even after 79 consecutive quarters of same-store sales growth abroad, Doyle said.
The 5,627-unit international division derives just under 40 percent of its sales from digital ordering, “but that’s with a very broad mix” from country to country, he noted. Digital ordering accounts for more than half of sales in Japan and Korea, but some markets still do not have the capability, Doyle said. Online orders account for about 10 percent of overall sales in India, a major growth market where Domino’s has the most scale of any Western quick-service brand, he said.
“There is as much or more of an opportunity for this outside the U.S. as in the U.S., because we’ve been earlier on the curve on international than we were on domestic, and it’s less developed in a lot of markets than it is in the U.S.,” Doyle said. “I’m confident that it will continue to be a big driver for us.”
Within the U.S., he added, Domino’s and its two biggest competitors, Pizza Hut and Papa John’s, are out to such a large lead on digital development compared with regional pizza chains and independents that the national players should continue to take market share from their smaller rivals.