If you want to buy a pizza business, check out the innovations at Domino’s

Sarah Stowe

Dominos CEO Don Meij has been driving digital disruption in the pizza chainDigital disruption has been the mantra for the Domino’s pizza chain for some time now.

And the disruption continues with the launch earlier this year of DLab, an innovation hub at the company's Queensland head office.

"A lot has happened in our kitchen or technology software. Now we are moving into hardware," says CEO Don Meij. "Lots of people have great insights but don't know how to bring them to life. This can help them research and innovate. It's a good working environment.

"We want to encourage start-ups external to the business. We are after innovation in certain areas that are complementary [to us]. 

"We're very good about commercialising ideas, and we're a potential customer – in return we get all the exposure to ideas.

"We're getting bigger and inevitably you get corporate."

Risk taking and innovative start-ups bring energy and fresh thinking to the market.

"It's incredibly important."

Speed and efficiencies in pizza 

Meij cites what he describes as "breathtaking, a major breakthrough to us" – the capacity to reduce cooking a pizza to three minutes. It's been achieved.

There's no doubt that the pizza market is very fast moving.

At Domino's two thirds of the business has been online. 

In early February there were stores taking 80 percent of their sales digitally, he reports.

The 55 year old business keeps reinventing itself. A franchisee in New Farm has beaten the benchmark set by Domino's to deliver in 13 minutes – it can be done in 10 to 11.

"We had four data touch points, now there are seven."

The mantra 'Slow when it matters, fast when it counts' has guided the development of improved processes. A slow approach is appropriate for the ingredients (natural and fresh) and for safe delivery driving, and time spent interacting with the customer on delivery. Where speed has an advantage is in the cooking time, and new technology has helped improve this.

"Our food is all natural and fresh, and we're educating the customer about this."

The 10 minute delivery has been a significant change to the industry, Meij believes.

And customers are responding with positive ratings. "We monitor the impact on the brand, through net promoter scores, record scores."

The company has a 24/7 social media team, and an internal goal of responding to comments within 30 minutes. 

"That's live feedback, we're very active."

The business still undertakes traditional qualitative and quantative research but it serves to confirm the results of the live data, says Meij.

"We are well advanced in eliminating all artificial colours, flavours and preservatives from our menu, without sacrificing the great taste and we are on way to achieving this target within two years."

What drives the business?

Meij highlights the name change as indicative of the business' new direction: no longer Domino's Pizza, but Domino's.

"We do carry-out and have seats in many stores. We've gone beyond pizza. We're more than a pizza company, we deliver chicken, desserts," explains Meij, who started his career as a Domino's driver. 

"I was out on the road last week delivering a $55 order and it was all desserts."

That's a big change from his early days in the business.

"We will continue to expand our menu. We're now the fastest delivery service in Australia for scale and size."

So what is it that ultimately attracts new franchisees to the Domino's network? 

Meij believes the answer is simple: it's all about profitability. "We're growing, improving and it's all about store economics.  It's the franchisor's job to give franchisees the ultimate tool box. We do that, and we ask them to keep up the last mile."

There are 60 new stores planned for Australia this year, with a long term outlook of 900 outlets in three to four years.

Franchisees need to be able to embrace change. 

"It's hard if you don't like change. We don't always ask them for additional investment. The internet is a great big shopping mall. They are getting access to this. Sometimes they have to invest in equipment."