What is the second largest pizza chain in the world?
Domino's share price performance since its listing
At present, 38% of Domino's13,000 stores are in the United States, and these stores contribute 87% of the total revenue. All the stores outside the United States have joined by franchising, and these franchised stores have contributed 23% of the company's total gross profit.
Domino's has now expanded to 85 markets around the world, among which the top ten markets account for 67% of the stores. It can be said that in most global markets outside the United States, Domino's has not really exerted its strength.
Comparing Pizza Hut and Papa John, the other two giants in the pizza industry, Yum! Brands, which went public in 1997, owns four catering brands: KFC, Pizza Hut, Taco Bell and Long John Silver's(LJS), which has only increased five times since the same period. Papa John, who also focuses on pizza, went on the market earlier. At present, its total market value is 2.95 billion US dollars, and its volume is lighter than Domino's (9 billion US dollars), with an increase of 10 times in the same period.
Yum Brands (NYSE:YUM)
John the Great (NASDAQ:PZZA)
13 years, 25 times, how to make the pizza legend?
Before the financial crisis, Domino's share price was flat. After the financial crisis, Domino's share price kept rising. In the past year, same-store sales of Domino's in the United States increased by 10.5%, global same-store sales increased by 6.3%, operating income increased by 1 1.6%, and net profit increased by1.4%. Domino's miracle is mainly attributed to the following points:
Clear positioning: focus on pizza fast food service
Domino's online ordering, mobile ordering, and delivery service within 30 minutes all emphasize to customers that they are a "fast" restaurant. When you are hungry and in a hurry, you can place an order online,/kloc-pick it up at the store in 0/5 minutes, or wait for delivery within 30 minutes. Because of the rapid development of take-away business in China, we may not feel that this is a big selling point. However, Domino's started online ordering service in 2007, and its foresight has surpassed that of many competitors.
In order to reach the target in 30 minutes, Domino's stores are very particular about their location. More than 5,000 stores have been set up in the United States to achieve rapid delivery by accurately covering every community. At the same time, Domino's stores and kitchens account for a large proportion. A large number of tables and chairs have been removed from the dining area, and there is no comfortable sofa seat, only a small number of areas for customers to wait for meals and eat quickly. Therefore, Domino's spending on a single store is far less than that of other peers. In 20 16, the operating profit rate of Domino's reached 18.36%, while that of Papa Johns was only 9.6% in the same period.
Such a clear choice stems from Domino's clear positioning of itself, focusing on fast food services.
Improve taste, and also play personalized customization in catering.
Whether it is delicious or not is a question that varies from person to person.
In 2009, a survey showed that Domino's pizza was at the bottom, and the chief marketing officer publicly declared that his pizza was terrible. Then Domino's began to improve the taste of pizza. In addition to changing the formula, one thing that Domino's deeply captures young people is personalized customization. Now we even pay attention to personalization when buying a drink. For example, we see that there are many recommendations for personalized ordering of milk tea on the Internet. Domino's pizza gives you many choices from the beginning of the crust.
You pick up the phone, you can DIY each pizza, choose one of the seven kinds of crust, and then add more sauce, less onions and some tuna? Through various combinations, countless new flavors can be achieved. If you often want to eat fast food, you will always want something different today.
Marketing earns eyeballs: playing with black technology
If accurate positioning and good taste can only create a "not bad" company, then marketing makes the company perform better.
Domino's black technology started with mobile ordering, and later introduced drone delivery and robot delivery, ordered food through smart wearable devices and emoji expressions, and scanned the stomach to judge the taste. Just press the pizza button and you can order food with one click ... These thoughts, which open your mind wide, are closely related to Domino's positioning.
Can Domino's black technology lead other technology companies? Not necessarily. But in the catering industry, or fast food industry, Domino's digital transformation is ahead of other companies. Since 2007, mobile ordering has been started, and now you can place orders on almost every platform: social network Twitter, Facebook, smart watch Apple Watch, smart devices Amazon Echo, Google Home, WeChat WeChat official account ... Domino's supports Google e-wallet, and it is also the first company to support Apple Pay.
Can the research and development of these technologies bring real benefits to Domino's? Not necessarily. But what is certain is that these marketing methods have earned enough attention. Especially for young people who enjoy fast food, Domino's image has become extremely cool.
One-click ordering button
At the end, China's business development is challenging.
The advantage of Domino's is that more than half of the ordering is digital, which allows Domino's to analyze users' tastes and preferences through big data and make more favorable decisions in future market development. Domino's music has made great efforts and developed very well in otaku culture, such as Japan and South Korea.
In China, at present, Domino's stores are limited to Beijing, Shanghai and Hangzhou, and do not cover all popular business districts. The take-away business in these three cities and other domestic first-and second-tier cities has been very developed, and it is difficult to fully reflect the advantages of Domino's.