Domino's India Logistics Management

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Background Note Contd...

By 1989, Domino's sales had reduced significantly and cash flows were affected due to the acquisition of assets. In 1993, Thomas took measures to expand Domino's product line, in an attempt to revive the company and tackle competition. The company introduced pan pizza and bread sticks in the US. In late 1993, Domino's introduced the Ultimate Deep Dish Pizza and Crunchy Thin Crust Pizza. In 1994, it rolled out another non-pizza dish - Buffalo Wings. Though Domino's did not experiment with its menu for many years, the company adopted innovative ways in managing a pizza store. Thomas gave about 90% of the franchisee agreements in the US to people who had worked as drivers with Domino's. The company gave ownership to qualified people, after they had successfully managed a pizza store for a year and had completed a training course. Domino's also gave franchises to candidates recommended by existing franchisees. Outside the US, most of Domino's stores were franchise-owned. Domino's was also credited for many innovations in the pizza industry and setting standards for other pizza companies. It had developed dough trays, corrugated pizza boxes, insulated bags for delivering pizzas, and conveyor ovens.

In 1993, Domino's withdrew the guarantee of delivering pizzas within 30-minutes of order and started emphasizing on Total Satisfaction Guarantee (TSG) which read: "If for any reason, you are dissatisfied with your Domino's Pizza dining experience, we will re-make your pizza or refund your money." Domino's entered India in 1996 through a franchise agreement with Vam Bhartia Corp² in Delhi. With the overwhelming success of the first outlet, the company opened another outlet in Delhi. By 2000, Domino's had outlets in all major cities in India.

When Domino's entered India, the concept of home delivery was still in its nascent stages. It existed only in some major cities and was restricted to delivery by the friendly neighborhood fast food outlets. Eating out at 'branded' restaurants was more common. To penetrate the Indian market, Domino's introduced an integrated home delivery system from a network of company outlets within 30 minutes of the order. Goutham Advani (Advani), Chief of Marketing, Domino's Pizza India, said, "What really worked its way into the Indian mind set was the promised 30-minute delivery." Domino's also offered compensation: Rs.30/- off the price tag if there was a delay in delivery. For the first 4 years in India, Domino's concentrated on its 'Delivery' strategy.

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2] Promoted by the Bhartia brothers - Shyam and Hari - known for their ventures in chemicals and fertilizers.