How Technology Innovation Has Helped Domino’s Pizza Weather the Storm

According to the company, U.S. sales results accelerated materially over weeks five through eight of the second quarter when compared to weeks one through four.
By RTN Staff - 2.26.2020

Founded in 1960, Domino’s Pizza is the largest pizza company in the world based on retail sales, with a significant business in both delivery and carryout pizza. It ranks among the world’s top public restaurant brands in terms of size and revenue with a global enterprise of more than 17,000 stores in over 90 markets. Domino’s had global retail sales of over $14.3 billion in 2019, with over $7.0 billion in the U.S. and nearly $7.3 billion internationally.

In the first quarter of 2020, prior to the COVID-19 health crisis that at its peak lead to approximately 2,400 temporary store closures, Domino’s had global retail sales of over $3.4 billion, with over $1.7 billion in the U.S. and over $1.7 billion internationally.

Emphasis on technology innovation helped Domino’s achieve more than half of all global retail sales in 2019 from digital channels, primarily online ordering and mobile applications. In the U.S., Domino’s generates over 65% of sales via digital channels and has developed several innovative ordering platforms, including those developed for Google Home, Facebook Messenger, Apple Watch, Amazon Echo and Twitter – as well as Domino’s Hotspots, an ordering platform featuring over 200,000 unique, non-traditional delivery locations.

In June 2019, through an announced partnership with Nuro, Domino’s furthered its exploration and testing of autonomous pizza delivery. In late 2019, Domino’s opened the Domino’s Innovation Garage adjacent to its headquarters in Ann Arbor, Michigan to fuel continued technology and operational innovation – while also launching its GPS technology, allowing customers to follow the progress of the delivery driver from store to doorstep.

Technology has played an instrumental role in enabling the company to weather the storm. “I am proud of the way the Domino’s system has responded rapidly to the COVID-19 environment, innovating across all aspects of our operations and our digital platforms to provide a contactless delivery and carryout experience,” said Ritch Allison, Domino’s Chief Executive Officer, in a May 26 press statement. “We will continue to focus on providing our franchisees and stores with tools to remain operationally and financially healthy, and to provide a trusted, safe and affordable option for customers at a time when they need it most.”

According to the company, U.S. sales results accelerated materially over weeks five through eight of the second quarter when compared to weeks one through four. As of the end of May, the company reports that it is seeing a tailwind as consumer behavior across the restaurant industry has shifted toward delivery and carryout. At the same time, the company concedes that it is not sure whether this trend will continue for the remainder of the second quarter or how long this tailwind may last.