Strategic Profile and Case Analysis Purpose Dominoes was found in 1960 and headquartered in Ann Arbor, Michigan. Domino’s Pizza Inc. is the market leader in the United States pizza delivery and second largest pizza company in the world based on number of units. The company offers a wide variety of pizza products as well as pasta, bread sticks, boneless chicken and wings, desserts and soft drinks. As of the beginning of this year, 2012, Domino’s had 394 company-owned stores and 4,513 franchised Domino’s units in the U.S. and 4,835 franchised stores internationally. Domino’s strategy is to use its superior supply-chain to provide its franchises with lost cost inputs so the franchises may focus on sales and service. Through the online …show more content…
Technology will assist in developing the firms’ strategies and strategic competiveness. | Global | More and more industrialized countries are emerging. Current and potential political events can affect the potential growth of Domino’s. | Physical | Creating and using products that are bio-gradable and promoting recycling can save Domino’s money, and differentiate themselves from their competitors. |
The restaurant industry was projected to have $604 Billion sales in 2011, which is approximately 4 percent of the projected total GDP of the United States according to the estimate from National Restaurant Association. The industry has been expanding since the 1960s, mainly due to the boom of quick service restaurants such as Yum! Brands Inc. and McDonald’s. The long term expansion of the restaurant industry is expected to continue as the major players in this industry are focusing on providing healthier and less expensive food for both Americans and customers’ abroad. The restaurant industry provides two categories of services: fast food and full-service restaurant. The fast food restaurants mainly serve products including sandwiches, and pizza. Those restaurants attract customers by offering
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The fast food industry has played a role in America’s economy. Fast food restaurants are the leaders in so many different things. They lead in marketing and jobs employed. “The tremendous success of the fast food industry has encouraged other
It owns the sole master franchise privileges for the Domino 's trade name and system in several parts mainly in Australia, New Zealand, France, Belgium, The Netherlands, Japan and the Principality of Monaco. Globally, it sells more than 1 million pizzas a day in roughly 1300 stores across 6 countries, 9000 in over 60 countries and 600 over Australia and New Zealand. It functions as a quick service pizza restaurant whereby it is differentiated because QSR retailers are recognized as acquiring incorporated management with required standard menus and pricing unlike smaller outlets.
In terms its overall significance of the restaurant industry, almost 10% of the US workforce has employed in this industry & generated 1.5 million new jobs. From global perspective, fast food restaurant's accounts for more than 90% of total world’s sale. At the start of 2012, industry shows a relatively positive trend. However, during the second quarter of the year, it appears to be slackened while reflecting macroeconomic concerns. From global economic perspective, the industry appears to be at the most receiving end, a stronger currency value, uncertainty around the election of new US government, a slightly higher cost of food supplies, a slow-moving labor market & an increased number of restaurants in the industry, all these factors along
From a study completed by Chicago-based Research International USA completed a study called “Fast Food Nation 2008. The panel consisted of 1,000 respondents of ages 16-65 who provided their inputs with an online survey which was conducted between March 13 through 2008. Which was based on results on fast food restaurants like McDonald’s, Burger King, and Wendy’s are gaining popularity even through the economic hardship and recession. Marketing strategy has become more of influence on kids and young American’s. As population grows and the demand increases of fast food restaurants are expanding their stores to capturing more consumers. Fast food chains are also willing to change their menus to continue to gain and retain repeating customers.
According to National Restaurant Association the restaurant industry covers one million fast food service locations in the U.S. and employs 14 million people. Globally, fast food generates a revenue of over $570 billion and it is expected to exceed $780 billion in 2016. Furthermore, the industry expects an annual growth of 2.5 percent for the next several years. The United States generated a revenue of $200 billion in 2015. In the restaurant market share 48.5 percent are covered by full service restaurants, which means that the QRS segment has sales of 51.5 percent and is supposed to grow
The moderate growth rate of the restaurant industry results in many competitive rivalries and the nature of business allows customers to switch freely. Therefore, among porter’s five forces, the pressures from substitute products tend to drive the most competition in the restaurant industry today (Restaurant 2015). In addition, restaurants face the threat of customer’s ability to choose other leisure activities such as going to the movies, bowling, or other social outings (Restaurant 2015). To effectively compete under such conditions, restaurants are heavily investing in brand building to create customer loyalty. Another trending strategy used to increase customer returns is servicing beyond food and beverages; restaurants are heavily investing in providing individualized, memorable and entertaining
According to the National Restaurant Association (2011), 2011 Florida restaurant sales are projected to be $30.1 billion in sales with Florida having 34,035 restaurants in 2009. The NRA (2011) states that in 1955 25% of each dollar spent on food was in a restaurant compared to 49% presently. Given this growth trend, restaurant owners are faced with ever increasing demand being offset by concurrent competition growth. To drive customer growth and repeat business a detailed examination of the literature is necessary to determine what others have found to be dominate factors in accomplishing this goal.
Quick Service Restaurants have been serving swift and tasty meals since the 1930’s. The industry focuses on a high speed product with a low cost for the satisfying convenience of the valued customer. Behind every commercial, smiling employees serve their customers as they cheerfully claim to adore their job, famous logos line highways that serve as a friendly reminder of the familiar, and “now-hiring” signs deck the interior of hundreds of restaurants that beckon it’s beholders to become part of the great family that is the fast food industry. In fact, to the common eye, the industry seems optimistic, a venue of opportunity – at least for the meanwhile – and an environment of simplistic means. Hardly ever do you hear about the costs of
The fast food, or quick service restaurant industry (QSR), represents approximately 200,000 restaurants and $155 billion in sales in the U.S. alone, they are one of the largest segments of the food industry (Hoovers, 2011). This segment of the restaurant industry is “highly competitive and fragmented… number, size and strength of competitors vary by region, market and even restaurant. All of these restaurants compete based on a number of factors, including taste, quality, speed of service, price and value, name recognition, restaurant location, customer service and the ambience and condition of each restaurant” (Chipotle, 2010).
The fast food industry has been growing dramatically during the last few years. For this reason, we should try to find out what are the several factors why fast food consumption keeps growing among young people and adults. Therefore, as we have seen, the popularity of fast food is spreading rapidly among many people due to the following three main reasons: good taste, convenient time, and price. Personally, working for a fast food restaurant for a brief moment in my life, I can attest to this. Marketing also plays a big part to more people eating fast food. It’s in our culture in America to expect fast food companies to market and strategize their ways to make us, the consumers, to buy more food and consume more food so they can make more profit. Especially now with commercials and social media. The fast food industry has thrived in the modern era. It’s thriving so much, the industry is growing faster than the U.S economy, at
The service industry is incredibly divers. There are different scales, menus, ambience and customers, but all these businesses have a common goal to sell food and beverages to a target market they hope will be stratified, and they hope to be profitable (Ojugo, 2010). To make the restaurant business successful and make it stand out, the right choice of suppliers, merchandising of the product and every step is an indispensable element.
Domino’s Pizza is the No. 1 Pizza Delivery Company in the world and the undisputed pizza delivery expert. The Company has a unique business and operation model and is a pioneer in the fast food industry. Since 1960, Domino’s Pizza has successfully expanded from 3 outlets in the United State to 9,350 stores operating in seventy countries. Domino’s operation in Malaysia and overseas uses the franchise model. The parent company, Domino’s Pizza LLC is head quartered in Michigan, United State of America. It maintains overall control on the sourcing and supplying of raw materials to the master franchises and enforces quality of the service and products sold. Founded in 1960, Domino's Pizza is the recognized world leader in pizza
From the very start, reliance on delivery and a focus on more efficient, streamlined processes (often at the sake of quality or customer satisfaction) were crucial aspects of the company’s business model. Because the shop itself was very small and had little room for sit-down diners, Tom hired laid-off factory workers and offered them commission to drive and deliver pizzas to nearby towns. The early focus on deliveries helped spread the brand quickly, and was a critical reason for Domino’s quick success as it allowed the shop to serve a greater volume of customers than other pizzerias that did not have delivery service. Additionally, Tom would always look for ways to improve profits by streamlining practices. For example, he would often drop items from the menu spontaneously if he was shorthanded at the shop. Though this would often upset customers, he found that volume and profits increased every time he did this, which led to Domino’s focus on a simpler, more “traditional” menu. As operations and popularity increased for the shop, its original owner decided to retain the name “DomiNick’s”. Unable to come up with anything, Tom Monaghan resorted to posting a YellowPages ad asking fornew name suggestions. A driver named Jim Kennedy happened to see the ad and submitted his suggestion, “Domino’s Pizza”, and the rest, as they say, is history. The company incorporated under its new name in 1965. With
The paper presents an analysis of the different factors influencing the restaurant industry and how these factors increase or decrease the demand for such services. The hypothesis that will be examined is that the performance of restaurants is mostly based on the type of food chosen by customers when they decide to go out for dinner, lunch, breakfast, or simply for a snack. What type of food refers mainly the nationality or concept of the food, (traditional American, Italian, Indian, Latin, or from any other type of culture). This factor is important because when customers go out to for dinner; they decide what to eat before deciding where to eat. That is why this factor is considerably important according to the hypothesis.