Domino's made 3 changes to become the world's top pizza chain
The company is opening hundreds of new locations and profits are soaring. Morgan Stanley recently named it the "leader in US delivery pizza."
A few years ago, Domino's was struggling to compete with Pizza Hut and Papa John's.
But executives made some crucial changes that turned around business, according to Jesse Solomon at CNNMoney
"The pizza is actually better now, and the marketing campaigns are cheesy good instead of just cheesy," Solomon writes.
In an earnings call with investors, Domino's CEO Patrick Doyle laid out a few reasons for the company's recent smash success.
Domino's has opened 1,800 new stores in 10 countries in the past four years, Doyle told investors. Domino's is thriving in emerging markets like Brazil and China because it is a relatively inexpensive luxury. The company said it is currently seeing growth in India, Turkey, and Japan.
Sales at Domino's have soared since the company came out with a new pizza recipe in 2009. Having a better core product was necessary for business to turn around.
Domino's has also innovated its sandwiches, pastas, and side dishes.
The "specialty chicken," strips topped with cheese and sauces increasingly ordered alongside pizzas, driving up the average ticket sale at Domino's, Doyle said.
Improving the menu has helped Domino's succeed over rivals like Pizza Hut and Papa John's.
Marketing guru Russell Weiner joined Domino's from Pepsi six years ago in the midst of a massive sales decline. Since then, he has implemented a self-deprecating marketing strategy that resonated with the consumer.
Domino's admitted that its pizza wasn't the greatest, and touted a new-and-improved product, helping to drive sales, QSR Magazine reports.
"We've always been viewed as providing good value to the consumer. We were not given credit for great-quality food," Weiner told the magazine in 2010.
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