Domino's Strategy Pays Off

In a risky move, Domino's was able to make three basic recipe changes that resulted in better sales without alienating their long time customers who already liked their original recipe. The pizza chain had no guarantee the changes would work out as a new recipe can result in failure as often as success, like Coca-Cola’s failed experiment with the “New Coke.” Domino’s new recipe addressed the crust first, adding more garlic and buttery flavor. Next, provolone was blended into the mozzarella cheese and finally the sauce was spiced up a bit with more red pepper.

It looks like Domino’s three simple recipe changes and the marketing campaign behind them struck gold with revenues up 18.4 percent for the first quarter over the prior year from $321.8 million to $381.1 million.

Domino's CEO Patrick Doyle said "We couldn't be more pleased with the success of our new and inspired pizza.”  He also commented on Domino’s strong international growth saying “With new markets expected to open in Europe, Asia and Latin America yet in 2010, I think we have by far the best international story in the sector." The fact that this year marks Domino’s 65th consecutive quarter of sales growth for its international division supports Doyle’s observations. Making the right moves in the market at the right time is one way to make progress in an uncooperative economy.