Per Figure 4, retail sales generated through Domino’s digital channel rose from 60% of total sales in 2017 to 75% in 2021.
Domino’s carryout tickets that are ordered online are 25% higher than those ordered over the phone, and are less labor-intensive, which is helpful in a tight labor market.ĭomino’s digital capabilities paid off when customers relied upon ecommerce channels during the pandemic. Digital orders create more customer engagement, ensure a more consistent customer experience, and drive higher sales against lower costs. Delivery: Domino’s operates an efficient delivery system that ensures customers gets a hot, quality product delivered in a timely fashion.īy taking ownership over the entire process, Domino’s eliminates cost inefficiencies and maintains a consistent quality level across its entire business.ĭigital Business Enhances Customer Experience and Profitabilityĭomino’s digital capabilities enrich the customer experience by offering quick and easy ordering options, a rewards program, exclusive digital-only deals, and a voice ordering application.By being selective, Domino’s protects its brand with franchisees who understand its business model and culture. The company requires franchisees to have extensive Domino’s and management experience.
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franchisees started as drivers or in-store employees. Franchisee selection: Over 95% of the company’s U.S.For example, Domino’s delivers mixed dough to stores, saving operators a time-consuming preparation step. Supply chain: Supply chain operations provide quality-assured ingredients at competitive costs, freeing time for franchisees to manage other parts of the business.Here’s how the company maintains that control:
market has the potential to grow to 8,000 stores, compared to 6,560 at the end of 2021, and its top 14 international markets could add an additional 10,000 stores, which would nearly double its international store count.Ī key contributor to Domino’s success as a franchisor is the control exerted over its product quality and customer experience, from end-to-end. Research and Markets expects the global QSR market to grow at a 4.9% CAGR from 2022 – 2027.ĭomino’s continues to see opportunities for profitable store growth. Store Count: 2014 – 2021Ĭontinued growth in the global Quick Service Restaurant (QSR) market will support Domino’s global retail sales growth. Per Figure 3, Domino’s grew its store count from 11,629 in 2014 to 18,848 in 2021.įigure 3: International and U.S.
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For potential franchisees, the company offers a streamlined operating model, national marketing campaigns, and a cash-on-cash return of investment in three years or less.Ĭlearly the opportunity is attractive to franchisees globally because the international market has been the main driver of store growth. This franchise model is beneficial to investors because it enables the company to efficiently manage its capital while having the flexibility to pursue strong growth opportunities. Dominos is more of a supply chain operator and consumer marketing firm than it is a restaurant chain.
The company generates revenue from franchise royalties and its supply chain operations in the United States.
Franchise Model Drives Store Count Growthĭomino’s is thought of as a restaurant chain, but the company owns just 2% of its stores.
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