Pizza is an emotion and is a food which is known all over the world. A good pizza could often leave an eater speechless and is one food which could be purchased anywhere in the world. The fame of Pizza and it’s easy availability throughout the world could be attributed in part to the global pizza chains Domino’s Pizza and Pizza Hut. It is quite easy to find these pizza outlets in multiple localities in any metropolitan and cosmopolitan cities. While Domino’s Pizza is now a world famous outlet, raking in a lot of revenue owing to its multiple product offerings, it was not always the case. At one point in time, Domino’s Pizza was struggling to stay afloat due to failing investor confidence in 2008, which is four years after the pizza chain applied for an initial public offering.
Domino’s Pizza shares were $2.83/share in 2008 and grew to $367/share in 2020. This is a whopping margin of 13,000 % growth and the way Domino’s Pizza achieved it is a story for the ages and business school case studies. Keep reading to find out how Domino’s Pizza managed this fairytale turnaround.
Domino’s Pizza was founded in 1960 by 23 year old Tom Monaghan who dedicated his entire focus on reducing delivery time, reducing cooking time and increasing distribution. Monaghan’s emphasis on speed and service led to groundbreaking growth with which competitors found it hard to compete. The ‘30 Minutes or It’s Free’ slogan guarantee, only cemented their place in the hearts of the hungry people everywhere.
In 2004, Domino’s Pizza applied for an IPO and by 2008 , they scaled to a multi billion dollar business. But, prospects were looking dim in 2008 even after applying for an IPO because growth had stalled, competitive threats from Pizza Hut and a $ 1 billion dollar debt on Domino’s’ balance sheets.
Domino’s Pizza did a focus group analysis and found out they were good at everything else except pizza. The focus groups found Domino’s pizza tasted like cardboard, totally devoid of flavour and the sauce tasted just like ketchup. This was due to a number of trade offs which were made in the name of speed like canned and frozen ingredients.
Patrick Doyle, the then CEO of Domino’s Pizza leaned into the feedback and launched an ad campaign which said “Our Pizza Sucks” and promised to go back to the drawing board to work on the criticism from the focus groups. The culinary team had to reinvent their pizza and had to build it from scratch. The culinary team ended up testing more than 7500 combinations. Many on the executive team at that time were in fear of failure. There was a fear of the testing leading to even larger problems and a chance of losing the advantage of speedy delivery.
Doyle had to break through the loss aversion barrier which means the mindset of playing not to lose rather than playing to win. Doyle would say “The pain of loss is double the pleasure of winning (sic,)” meaning even he advised caution during situations which demand creativity. The reinvention paid off as customers loved every new recipe launched by Domino’s Pizza and an example would be the pan pizza which was released in 2012 and is still in circulation. Doyle’s reinvention showed customers that Domino’s Pizza cared about their feedback. Following the success of their newly reinvented pizza, Domino’s Pizza focused on improving distribution channels and delivery technology. Since then, there has been no stopping Domino’s Pizza, and their share price in 2020 only serves to show the trust their customers have on them.
feaWe hope this article has awakened a craving for a Domino’s PIzza in you. Do let us know in the comments if there are any similar growth stories you know off and we would be glad to cover them on Startup Stories.
A Step towards Solving the Oxygen Crisis in Country, Albot Technologies Inaugurates O2 Plant in Pune
A 500 LPM oxygen plant was inaugurated by Mr. Ajit Pawar, the Deputy Chief Minister of Maharashtra on Friday. The plant has been made operational by Albot Technologies Pvt. Ltd. in collaboration with D.Y. Patil International University (DYPIU) and is installed in the premises of D Y Patil Dnyanshanti School, Akurdi. This marked a monumental milestone towards a future with sufficient oxygen supply. To refresh one’s memory, during the second wave of the pandemic, India had immensely struggled with a rampant oxygen shortage. A sustainable solution to tackle such a critical issue was the need of the hour.
Mr. Ajitdada Pawar cuts the ribbon on Albot Technologies O2 Plant
The list of guests of honour also included the likes of Dr. Sanjay Patil – President, Dr. D.Y. Patil Pratishthan, Mr. Satej Patil – Chairman & Vice President Dr. D.Y. Patil Pratishthan, and Minister of State, Govt of Maharashtra and Dr. Prabhat Ranjan, VC D.Y. Patil International University.
The plant has been engineered to produce over 500 Litres of Oxygen per minute. It employs the well-known Pressure Swing Adsorption (PSA) technique by which the enriched oxygen is generated from the ambient air while filtering out the nitrogen. With the PSA technique, an oxygen purity of 93% can be achieved. Once the oxygen is generated, it can be directly supplied to the hospitals and industrial sectors.
“Our objective is to strengthen the oxygen manufacturing capacity in the nation to forestall the consequences as seen in the second wave of the pandemic. We are viewing this from a multidimensional perspective; enhancing the supply chain while keeping an eye on the evolving demand too,” said Dr. Akash Singh, CEO, Albot Technologies.
Under the Corporate-University collaboration, Albot Technologies has been in a partnership with DYPIU for technology, infrastructure, and healthcare projects.
This collaboration is fueled by the purpose to serve the community in the face of the COVID-19 pandemic and to develop indigenous O2 plant technology for future use under the “Make in India” initiative.
The specialized PSA technique used for this Oxygen plant is a “clean technology“. The raw materials used for this technique are only air and hence there’s no risk of contamination. The oxygen supplied via this plant can be stored for long-term usage and it’s completely safe to use because the chemicals used in the process are non-toxic.
Along with the added advantage of its capacity to produce 500 liters per minute, this O2 plant aims to annihilate India’s oxygen crisis substantially.
Sirca Celebrates Jashn-e-Rang with Key Partners as they Believe ‘Ghar Hai Aapse’
Sirca, one of the leading Italian and premium wood coatings brands in India hosted an event for its dealers and distributors family on September 13. The colorful event was carried out by following all COVID protocols, and the company hosted this program to spread positivity among its stakeholders.
Sirca Celebrates Jashn-e-Rang Event
Named Jashn-e-Rang, Sirca organized this event to live up to the companys motto Ghar Hai Aapse With this event, the company made a positive move by showcasing how events can be carried out in a new normal scenario.
Apart from distributors, dealers, and stakeholders, Bollywood beauty Malaika Arora, and singer Khadke Glassy fame Ashok Masti also graced the occasion with their presence. “Even though the global pandemic has taken a toll on the entire business sector in India, Sirca believes in positivity, and we have now celebrated our past achievements by giving rewards and recognition to dealers and distributors. We also inaugurated our new office and manufacturing units, and it is a clear indication that business operations can be done without any toll in this new normal scenario. As the second wave of the pandemic has now waned in India, I strongly hope that all business operations will be bounced back strongly in the nation,” said Apoorv Agarwal, Sirca Joint Managing Director.
“When the pandemic badly affected the world of business, Sirca stood tall as an industry leader. By organizing this event, Sircas exuberance is a huge example and great inspiration for the market, it’s always a pleasure to partner with such a spirited brand,” said Darpan Sharma, CEO & Strategist, DigiStreet.
JM Financial Products Limited Announces Tranche I Public Issue of upto Rs. 500 Crore of Secured, Rated, Listed, Redeemable NCDs
JM Financial Products Limited, the flagship NBFC arm of the JM Financial Group, announced Tranche I public issue of Secured NCDs of face value of Rs. 1,000 each.
Mr. Vishal Kampani, Managing Director, JM Financial Products Limited, (also MD, JM Financial Group), said, “JM Financial Products has fortified its position across business verticals with a diversified product mix while maintaining a focus on risk adjusted profitable growth. The Company has maintained strong liquidity buffers. This public issuance will continue to help us diversify our borrowing and investor mix. Our strong balance sheet, well-capitalised and diverse set of businesses and strategic client-focused approach position us to drive sustainable value for our stakeholders.“
The Tranche I Issue offers 4 Series – Series I comes with floating interest rate option in the tenor of 39 Months. Series I carries floating interest rate based on 3-month T-Bill Rate published by the Financial Benchmarks India Pvt. Ltd. (“FBIL“) plus 3.15% spread. The Coupon for Series I NCDs will depend on the movement of the T-bill rate.
In addition, Series II, III and IV comes with fixed interest rate option in the tenor of 60 Months (Annual), 60 Months (Monthly) and 100 Months (Annual), respectively. Effective annual yield for Series II, III and III NCDs (fixed interest rate) ranges from 8.19% to 8.30% per annum. The Tranche I Issue offers options for subscription with coupon rates ranging from 7.91% to 8.30% per annum for Series II, III and IV NCDs (fixed interest rate).
The Lead Managers to the Issue are Equirus Capital Private Limited and JM Financial Limited.
The funds raised through this Tranche I Issue will be used for the purpose of onward lending, financing, and for repayment / prepayment of interest and principal of the borrowings of the Company (at least 75%) and for general corporate purposes (up to 25%).
- A Step towards Solving the Oxygen Crisis in Country, Albot Technologies Inaugurates O2 Plant in Pune
- Sirca Celebrates Jashn-e-Rang with Key Partners as they Believe ‘Ghar Hai Aapse’
- JM Financial Products Limited Announces Tranche I Public Issue of upto Rs. 500 Crore of Secured, Rated, Listed, Redeemable NCDs
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