Honesty and New Recipe Pays Off for Domino’s
Domino’s pizza used to be pretty bad. That’s what consumers told the chain
and the company used that negative feedback to promote its brand new pizza
recipe in its advertising.
After several months, the chain has achieved "historic" same-store
sales gains, according to CEO J. Patrick Doyle. Over the past quarter, Domino’s
has seen sales at locations open at least a year jump 14.3 percent.
Christopher Muller, hospitality professor at the University of Central Florida,
told USA Today, that the chain changed its crust, cheese and tomato
sauce. It "was like the world poker championship. Domino’s put everything
on the table."
"No one in the industry thought it was going to be this successful," he
said. "This changes the pizza landscape."
Mr. Doyle said he was most encouraged because the new approach is not only
driving trial but repeat business, as well.
"If we did this every quarter for seven years, we’d be bigger than U.S gross
domestic product," he told USA Today.
Discussion Questions: What do you think of Domino’s approach to addressing
negative perceptions of the chain’s products in its advertising? (Be honest…)
when you first saw the ads, did you think the strategy would work? Can you
think of other retail chains that could benefit from "honesty."