Posts Tagged ‘Domino’s pizza’

Dominos Sells Restaurants to Atlanta Franchisees

October 20, 2011

Dominos has been doing a lot of restructuring in the last handful of years. Marketing guru Dan Kennedy referred to them being pulled “kicking and screaming to develop a pizza that actually tastes good.” Regardless of what you think of the quality of the chain’s pizzas, they have an undeniable recession-proof business model.

 

The company has been going strong since it was founded in 1960, and shows no signs of succumbing to the recession. As of this writing, Domino’s boasts nearly 9,500 company-owned and franchised stores spanning the United States and more than 70 international markets.

 

Domino’s Pizza in Atlanta

 

The chain cites 118 locations in the Atlanta metro area. Its recent sale of 30 stores to franchisees leaves eight company-owned locations in the area.

 

“There are terrific, proven operators in Atlanta, and this is an opportunity for them to grow,” says Domino Executive VP of franchise operations and development Scott Hinshaw. “Local, hands-on leadership is crucial to our success worldwide, and Atlanta is an important market for us.”

 

The company plans to sell the remaining eight restaurants to franchisers in the near future. It also closed down two stores in the area, in the towns of Hampton and Hiram.

 

Who’s Buying All the Dominos?

 

The largest buyer of the Atlanta locations is Mike Orcutt, Dominos’ former VP of Operations. His company, Cowabunga Pizza Inc., now owns 93 Domino’s locations in Alabama, Georgia, and South Carolina.

 

The company also sold nine of its stores to Greg Fox, a franchisee who now owns 38 of the chain’s locations. The company sold five more stores to operator Todd Dyrda, who now has seven stores. The last two stores went to new franchisee Tim Garrett.

 

Dominos in Florida

 

Earlier this year (June of 2011), NRD Holdings LLC, an Atlanta-based company, bought 23 Domino’s locations in Florida. The company is one of the biggest fast-food franchisers in the U.S.

 

What does all this selling-to-franchisers mean? Smart chain store owners should take note–Dominos hasn’t been around for half a century because of good luck. Company leadership apparently believes that smart franchise owners are the way to go to weather our current recession.

 

 

 

 

The Domino’s Pizza Government Bailout

November 19, 2010

Cheesier pizza simply tastes better than less cheesy pizza. Who knew, right? Well it turns out that Domino’s Pizza didn’t know about it. Their sales had been nose diving last year and their pizza had been voted the worst tasting pizza in the entire country. Yikes!

However, that’s not what this story is about. Instead, we’re more interested in how Domino’s managed to turn things around. It seems they got a government bailout, just like the banks and the car companies last year.

Government Agency to the Rescue

An organization called Dairy Management stepped in to help out the ailing pizza chain and get them back on their feet financially. The organization worked with Domino’s to come up with a new recipe for their pizzas which has forty percent more cheese on it than the old ones did.

They also helped them plan a $12 million marketing bonanza to advertise their new pies and to get people back in the door. Sales jumped and everything seemed to going their way. However, there’s one interesting wrinkle. Dairy Management is a government agency, not a private firm.

A Creation of the USDA

The United States Department of Agriculture funded and indeed created Dairy Management in order to help their core constituency to be more competitive in the world of dairy products. The organization exists solely to promote dairy products and cheese in this country. The fact that a government agency is stepping in to help however has some people up in arms.

No Less than the First Lady Herself

What makes this whole incident so amusing is that the first lady herself, Michelle Obama, has been pleading with restaurants to try to make their menus healthier while Dairy Management has been spending some $140 million to promote eating more cheese. While cheese may be tasty, it is not always the healthiest thing to eat in large quantities.

Bottom Line

The bottom line of course for us as restaurateurs is to try to balance the demands. Ultimately, we need to provide what our customers want to eat and not what the government says we should be serving. Luckily for Domino’s, the government and the market both agree on more cheese!