Posts Tagged ‘recession-proof business models’

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.