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The Success Of The Pizza Industry

Decent Essays

Introduction Domino’s has been serving up pizzas to the public since the 1960’s, when it was created by Tom Monahan and his brother James. They managed to carve out a niche in the market when they decided to focus on making fast pizza as opposed to quality pizza. Dominos famous tag line – “If it’s not delivered in 30 minutes, it’s free!” For many years this strategy worked and catapulted Dominos to the leading organization in the business. However, after many years of success, the pizza industry started to evolve and Dominos found itself facing declining sales numbers, high employee turnover, and poor consumer ratings in taste tests. If the company were going to survive it had to re-evaluate its long standing value proposition, revamp its food, and also restructure its HR strategies. All of which were done successfully, but this paper will focus on the latter of the group – Dominos HR strategies. The “People First” Department One major problem Dominos faced, like many fast-food chains, was rampant employee turnover. “Dominos turnover rate was 158 percent annually. In other words, for every employee hired during a year another 1.5 employees quit” (Snell, et al. pg. 78, 2015). In 2009, with rising customer dissatisfaction, sharper declines in sales, and obvious employee dissatisfaction Dominos decided to launch a franchise-wide turnaround. A major change introduced was the restructuring of HR and the value recognition placed on its employees. The HR Department was no

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