Case Study on Domino’s Pizza UK
Subject: Business, Marketing | Topics:

Introduction

Domino’s Pizza started life as Domi Nick’s in 1960 founded by two brothers Tom and James Monaghan from Michigan. Within 8 months, James sold his share in the company to his brother, leaving Tom the sole owner of the pizza outlet.

Brief history on operations in UK

Domino’s Pizza.  The UK pizza delivery and take away market.  This market was estimated to be worth nearly £450 million in 2000.

The Domino name carries the company’s main brand as market leader in its field of operation. The company’s logo is a distinctive part of the business’ brand. The three dots ‘domino’ image comes from the founder’s idea that originally he would open three stores.

The business was founded in the USA in 1960 by Tom Monaghan, who ran the business until retiring in 1998, when he sold the company for $1billion. By using the concept of ‘franchising’ where other people are encouraged to invest money to open their own pizza store, Domino’s quickly expanded to the point where it is the world’s largest pizza delivery company and the eighth largest fast food brand.

In 2002 there was a total of more than 7000 stores in 64 markets worldwide, employing over

2,50,000 staff and involving more than 2000 franchises. Domino’s started trading in the UK in 1985 with a store in Luton. In 2002 there were over 200 stores in the UK and the Republic of Ireland.

Organizational structure:

Domino’s Pizza UK & ILR plc – Parent company listed on the AIM.

Domino’s Pizza Group Ltd – Runs Domino’s Pizza in the UK and Ireland, holds the exclusive franchise license to own, operate and franchise the Domino’s brand.

Domino’s Corporate Team – Based at Milton Keynes, comprising over 200 employees.

The Leadership Team – Responsible for strategic decision-making.

Marketing – Understanding customers’ needs and publicising the Domino’s brand. Developing new products and use of technology.

Food Service – Manufacturing fresh pizza dough and sourcing fresh ingredients. Buying in or inventing equipment.

Information Technology – Technology and e-commerce activities.

Property – Acquires store premises, oversees planning permission applications and refurbishes stores.

Flawless Execution – Not a form of capital punishment! Actually, Domino’s training and operations, including career development and store check activities.

Finance – Organizes finance for franchisees, as well as overseeing cash flow, budget planning, sales and purchase ledgers, payroll, accounts and credit services.

Human Resource Management activities of this company:

 Domino’s Pizza state that they are committed to the development of positive policies to promote equality of opportunity in employment. They aim to ensure that no job applicant or employee receives less favorable treatment on the grounds of sex, marital status, race, colour, creed, ethnic origin, sexual orientation, religious beliefs, age or disability.

In both 2001 and 2002 Domino’s opened more than 225 new stores. Running each store takes a team of about 25 people. Team member numbers should therefore have risen significantly over this period.

Employees (or team members, as Domino’s term them) are motivated and trained to offer high standards of customer service.

Franchisees and their staff teams have access to training programmes and can attend corporate events in the UK and abroad. An awards system operates and some Domino’s team members go on to buy their own franchise.

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