Food Business News - July 10, 2018 - 66
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BATTLE FOR PIECE
of the food service
arlier this year, Domino's Pizza, Inc.
unseated Pizza Hut as the largest
pizza company in the world based
on global retail sales. Domino's was
quick to point out the change in ranking
in press materials, and the announcement has served as a springboard to
further success for the Ann Arbor, Mich.based pizza chain.
Domino's retail sales in 2017 exceeded $12.2 billion, surpassing Pizza Hut's
total of $12.03 billion. And while Pizza
Hut still holds the top spot in terms of
locations operating worldwide - roughly 16,750 to 14,850 - there is no denying
Domino's share price climbed to
$293.81 on June 22, an all-time high and
up 55% from the end of December 2017,
closing higher for nine straight days
between June 12 and June 22.
In a June 20 presentation at the
Oppenheimer Consumer Conference in
Boston, Jeffrey D. Lawrence, executive
vice-president, chief financial officer and
principal accounting officer at Domino's,
said the company has been able to achieve
its recent success by attaining balance.
Food Business News
" ... When you talk about retail sales,
we're achieving the balance between
comps and unit growth to drive retail
sales growth, which is exactly kind of the
way you'd want to draw it up if you were
to whiteboard it," Mr. Lawrence said.
He described the pizza category as
"incredibly fragmented," with more than
50% of the industry comprised of independent and regional pizza players. The largest
three or four pizza companies account for
less than half the category's market share,
a scenario Mr. Lawrence said has allowed
Domino's to flex scale the old-school way in
procurement and advertising as well as the
new-school way in technology.
"It has really proven to be a market
share changer for us and something that
we're very, very keen on making sure
that we maintain that technological
leadership and innovation by leveraging
our scale," he said.
Technology has been a gamechanger for Domino's. Although admittedly the last to market of the big pizza
players, Mr. Lawrence said Domino's
has catapulted past its competitors to
become the leader in technology.
Domino's stakes claim
to leading spot in pizza
sales as Pizza Hut moves
to regain footing
"How do you do that?" he asked.
"Well, you take the long and hard
road. You dedicate yourself to really
courageous choices, including 10 or
15 years ago deciding we were going
to have one point-of-sale system that
was going to be really important, and
getting that through the U.S. system
as fast as we could. When e-commerce
comes around, you can then vertically
integrate your e-commerce capability,
both in the U.S. and now abroad, and
that just again creates a lot of momentum. And we can innovate faster and
more efficiently, we believe, than the
He said consumers have recognized
Domino's speed and efficiency when
it comes to digital ordering and are
rewarding the pizza chain with their
business. Domino's also has benefited
from a strong loyalty program.
"We have more than 15 million
active loyalty members, which puts us
in the top one or two loyalty programs
in all of Q.S.R., more broadly," he said.
"And again, (this is) just one more thing
that we think we're doing that's helping
July 10, 2018