Home Case Study Domino’s Pizza Business Model: Operations and Revenue Sources

Domino’s Pizza Business Model: Operations and Revenue Sources

by Tarun Pal
domino's business model and revenue sources

When I say “pizza”, what brands come to mind? Of course, it would be Domino’s. Don’t be surprised to learn that Domino’s sells 3 million pizzas worldwide. Now, you might be wondering how much money Domino’s makes per day.

Well, in this article we will answer all the questions related to Domino’s business model.

Domino’s – Introduction 

Domino’s is an internationally  well -known brand for ‘Pizza’ founded by Tom Monaghan, James Monaghan on 9 December 1960, Ypsilanti, Michigan, United States. 

Domino’s is famous for its menu of pizza, pasta, chicken dishes, sandwiches, and various side items. They are known for their commitment to delivering pizza quickly and efficiently, with a focus on delivery and carryout services.

Here are the additional details about Domino’s: 

FieldInformation
FoundersTom Monaghan and James Monaghan
Founded DateDecember 9, 1960
Legal NameDomino’s Pizza, Inc.
RevenueApproximately $1.025B (2023)
EmployeesOver 325,000 (as of 2023)
IndustryFast Food, Pizza Delivery

How Domino’s Operates? 

In simple words, Domino’s operates through offline and online channels. Offline, customers visit physical stores in person to order, pay, and dine in or take away. Online, they use the website or app for menu selection, address and payment input, real-time tracking, and delivery. This dual approach accommodates diverse customer preferences and ensures accessibility.

Here is the distinction between online and offline operations of Domino’s: 

Online Operations – Dominos 

Dominos website screenshot

Online Ordering

Customers can place orders online through the official Domino’s website or mobile app. They can create an account or place an order as a guest.

Menu Selection

Online customers browse the digital menu, select the items they want, and customize their order with different toppings, crust options, and side dishes.

Delivery or Carryout

Customers have the option to select delivery or carryout at their designated location, where they can pick up their order from the nearest Domino’s store.

Address and Payment Information

Online customers provide delivery addresses and payment information securely through the website or app.

Real Time Tracking

Domino’s offers a “Pizza Tracker” feature, which allows online customers to track the progress of their delivery order in real time, from preparation to delivery.

Payment Process

Online customers can pay for their orders using various online payment methods including credit/debit cards, digital wallets and cash on delivery (if available).

Confirmation and Delivery

After placing an online order, customers receive confirmation details, and delivery drivers are dispatched to deliver the food to the specified location.

Feedback and Reviews

Domino’s Online encourages customers to provide feedback and reviews about their experience, which helps the company improve its service and quality.

Offline Operations – Dominos

Here’s how Domino’s works offline:

dominos offline store

Visit a Franchise Store

Customers can choose to dine in or visit a nearby Domino’s store to place their order in person.

Placing Order

At the store, customers can interact with employees, review the menu and place their order by specifying the type and size of pizza or other menu items.

Payment

Customers can pay for their orders at the store using cash, credit/debit cards or other available payment methods.

Food Preparation

Domino’s employees in stores prepare orders to customer specifications. They assemble the pizzas, cook them and ensure that quality standards are followed.

Packaging

Once the order is prepared, it is carefully packed into Domino’s-branded containers for carryout customers.

In food

For dine-in customers, food is served on plates, and they can enjoy their meals in the store.

Business Model of Domino’s 

Domino’s business model is streamlined, focusing on two primary routes: online pizza sales and franchised stores.

Customer Segments

Domino’s Pizza caters to a huge global customer base with a primary focus on youth, working professionals and event organizers. The brand strategically designs marketing campaigns targeting major events, offering substantial discounts and promotions, thereby increasing sales and increasing brand recognition around the world.

Value Proposition

Domino’s provides value to its customers through several means:

  • Digital ordering: Domino’s offers online ordering through a dedicated app and website, taking advantage of the preference of the majority of American adults for online pizza ordering. The brand ensures quick delivery with exclusive deals.
  • Global expansion: Operating in more than 85 markets around the world, including the Americas, Africa, the Middle East and Asia, Domino’s offers a wide reach, providing access to its famous pizza products.
  • Ordering ease and accessibility: Users can easily order via phone, app, or in-store, customizing their experience to suit their preferences.
  • Efficient Supply Chain Management: Domino’s boasts an integrated flour manufacturing and supply chain system, which guarantees quality and uniformity of offerings across its franchise stores.

Special Associate

Domino’s Pizza cooperates with a variety of partners, including:

  1. Vendors: Ensuring continuous supply of high quality materials and supplies.
  2. Franchise Partners: Facilitate brand growth through franchise operations.
  3. Marketing Partners: Strategic tie-ups with well-known brands like Primo, Kagome, Vizi and others, leveraging their wide customer base to strengthen Domino’s presence in the market.

How does Domino’s make money? 

Domino’s main source of income is the sale of pizza and other menu items to customers. Domino’s generates a significant portion of its revenue from pizza sales, which is the core of its business. This includes a wide variety of pizzas with different sizes, crust types and toppings, as well as additional revenue from side dishes, desserts and beverages.

While other revenue streams such as delivery fees, carryout, and franchise fees are important, pizza sales remain the primary and largest source of income for Domino’s.

In conclusion 

This is the business model of Domino’s Pizza. I hope you will understand this topic quickly and effectively. Unfortunately, we can’t tell you Domino’s income, because they never disclose it anywhere.

Pro Tip: If you have a food business and want to grow your business, contact us. We are a digital marketing and IT consultancy agency that provides marketing strategies for business.

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