Domino`s Pizza: Business Continuity Strategy during the Covid-19 Pandemic
| Case Code: BSTR601 Case Length: 15 Pages Period: 2020 Pub Date: 2020 Teaching Note: Available |
Price: Rs.400 Organization: Domino’s Pizza Inc. Industry: Foodservice Countries: United States, India Themes: Crisis Management & Conflict, Services Marketing, |
Abstract Case Intro 1 Case Intro 2 Excerpts
Excerpts
The covid-19 pandemic
Covid-19 was closely related to the severe acute respiratory syndrome (SARS) which started in China in 2002. The SARS virus infected around 8,000 people and killed 800. Another coronavirus was the Middle Eastern Respiratory Syndrome (MERS) that emerged in Saudi Arabia in 2012. There were around 2,500 infected cases and 900 deaths due to MERS...
Domino’s launches ‘contactless’ delivery
Domino’s former CEO, Patrick Doyle, had famously said that Domino’s was a tech company that sold pizzas. However, analysts felt that it had remained true to the company’s core competency: pizza...
Other initiatives
Due the Covid-19 pandemic, many people were working from home and several others were out of work. Thus, in April 2020, Domino’s announced plans to donate 10 million slices to people most affected by the pandemic in the US. The pizza giant aimed to donate the food to hospitals and medical centers, in addition to helping school children, grocery store workers, health departments, and ‘others in need.’ ...
The results
Domino’s contactless delivery initiative helped the company thrive despite the Covid-19 lockdown across many countries worldwide. In April 2020, Domino’s reported that its first-quarter sales had increased by 4.9% in the US while its international stores recorded an increase in sales of 6.8% for the same period. Despite an increase in sales, analysts pointed out that though overall the results looked positive during the pandemic, Domino’s sales had been impacted during this difficult time. ..
The challenges
Though Domino’s was by and large appreciated for its contactless delivery during the Covid-19 pandemic, it faced a backlash from critics and some of its employees for keeping its stores open. A campaign started against Domino’s in Change.org by Domino’s employee Issy Anna (Anna), accused the company of putting its employees at risk at a time when states had entered a lockdown or had urged residents to remain indoors to curb the spread of Covid-19. ..
Looking ahead
Analysts appreciated Domino’s strategy of gaining a larger portion of the pie during the Covid-19 lockdown. They opined that Domino’s strong delivery infrastructure in addition to its having a strong digital consumer base helped it to capitalize on the contactless delivery trend. .
Exhibits
Exhibit I: Preliminary Estimated First Quarter 2020 Sales (Unaudited)
Exhibit II: Domino’s Consolidated Statement of Profit or Loss
Exhibit III: Preliminary Estimated First Quarter 2020 Store Counts (Unaudited)
Exhibit IV: Domino’s Pizza Stock Chart (April 15, 2019-April 15, 2020)
Exhibit V: Covid-19 Statistics – Top 25 Countries
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