Domino's Master Franchise Model

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Case Details:

Case Code : OPER080
Case Length : 19 Pages
Period : 1983 - 2009
Organization : Domino's Pizza Inc.
Pub Date : 2009
Teaching Note :Not Available
Countries : US
Industry : Food and Beverage

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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"Our job is to take all of those franchisees, all of their entrepreneurial spirit, the experience they have as business leaders and owners and operators of their own businesses and companies, and bring all of that force together in a united, focused effort to grow our sales, to improve our profits, and to become a bigger, more dominating player in the category that we compete in." ¹

- David A. Brandon, Chairman and CEO, Domino's Pizza Inc, in March 2008.

"Franchisees have always been at the heart of our success. The commitment and business acumen of these individuals has helped to make Dominos Pizza the leader in pizza delivery across more than 64 international markets. Our expertise and passion for delivering hot and fresh pizza has earned us the loyalty of millions of pizza lovers around the world."²

- Andy Cooke, Dominos Pizza Franchise Development Manager, in February 2005.

Introduction

For the fiscal year 2008, the US-based Domino's Pizza Inc. (Domino's), the #1 pizza delivery company in the US³, reported global retail sales of US$ 5.5 billion, which included the retail sales of its company-owned and franchise stores. The company reported revenues of US$ 1.425 billion of which the revenues from company-owned stores stood at US$ 357.7 million, domestic franchise stores at US$ 153.9 million, and revenues from international stores at US$ 142.4 million. Domino's operated through 489 own stores and 4,558 franchised stores in the US. Internationally, it operated through 3,726 franchised stores.

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1] Jon Thibault, "David Brandon: On the Front Lines of the Pizza War," www.equitiesmagazine.com, March 2008.
2] "Domino's Pizza Celebrates 20 Successful years of Franchising," www.prweb.com, February 19, 2005.
3] Domino's USA refers to 48 states in the US and the District of Columbia. It does not include Alaska and Hawaii.

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