Stories
How Domino’s Pizza Grew 13000% From 2008 To 2020
Published
4 years agoon
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.
ALSO READ: How KhataBook Grew From Simple SMS App To Leading FinTech App In India
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.
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Remembering Ratan Tata: A Legacy of Leadership, Innovation, and Philanthropy!
Published
17 mins agoon
October 10, 2024Ratan Tata, the revered former chairman of Tata Sons, passed away on October 9, 2024, at the age of 86. His death signifies the conclusion of an influential era for both the Tata Group and the Indian business landscape as a whole.
A Legacy of Transformation
Born on December 28, 1937, in Navsari, Gujarat, Ratan Tata was the great-grandson of Jamsetji Tata, the founder of the Tata Group. He assumed leadership as chairman in 1991 during a critical period of economic liberalization in India. Under his stewardship, the Tata Group diversified into various sectors such as IT, steel, automobiles, and hospitality. One of his notable achievements was the launch of the Tata Nano in 2008, which aimed to provide affordable transportation to millions.
Tata’s strategic vision led to significant global acquisitions, including Jaguar Land Rover and Tetley Tea, transforming the Tata Group into a $100 billion conglomerate by 2012. His tenure saw over 60 acquisitions that expanded the group’s international footprint and solidified its place on the global stage.
Philanthropic Endeavors
Beyond his business prowess, Ratan Tata was deeply committed to philanthropy through the Tata Trusts. His contributions significantly impacted healthcare, education, and rural development initiatives across India. His dedication to social causes earned him prestigious accolades such as the Padma Bhushan in 2000 and the Padma Vibhushan in 2004.
Tata championed entrepreneurship by investing in startups and fostering innovation through initiatives like Tata Capital and Tata Start-up Hub. Reports suggest he donated around 60-65% of his income to charitable causes, underscoring his commitment to societal betterment.
Tributes and Mourning
The announcement of Ratan Tata’s passing prompted an outpouring of tributes from leaders across various sectors. Prime Minister Narendra Modi described him as “a visionary business leader” whose contributions were “immeasurable.” Mukesh Ambani and Sundar Pichai also expressed their condolences, emphasizing Tata’s role in elevating India’s presence on the global stage.
The Chief Minister of Maharashtra announced that Tata would receive a state funeral in recognition of his invaluable contributions to Indian society and industry. Social media platforms were flooded with tributes under hashtags like #RatanTata and #EndOfAnEra, reflecting the profound impact he had on countless lives.
Conclusion
Ratan Tata’s death is not merely a loss for his family and friends; it represents a significant loss for a nation that viewed him as a guiding light in both business and philanthropy. His legacy will continue to inspire future generations as they navigate the complexities of industry and social responsibility. Ratan Tata may be gone, but his remarkable life and contributions will be remembered for years to come.
As India mourns this great leader, it is vital to reflect on his enduring impact—one that transcended corporate boundaries and touched lives across various sectors. Ratan Tata leaves behind a legacy characterized by integrity, compassion, and an unwavering commitment to upliftment.
Entrepreneur Stories
Andhra Pradesh Hotels Association Announces Boycott of Swiggy Over Unethical Practices and Payment Delays!
Published
2 days agoon
October 8, 2024The Andhra Pradesh Hotels Association (APHA) has declared a statewide boycott of Swiggy, effective October 14, 2024. This decision stems from ongoing grievances regarding the food delivery platform’s alleged unethical practices and its failure to make timely payments to restaurants.
Reasons for the Boycott
At a media conference on October 4, APHA President R.V. Swamy outlined several critical issues that prompted this drastic action. One of the primary concerns is the significant financial losses that restaurants are experiencing due to Swiggy’s high commission rates. Initially, both Swiggy and Zomato operated in Andhra Pradesh with zero commission fees. However, these rates have escalated over time, with Swiggy now charging between 20% to 30% on orders. According to Swamy, restaurants are losing between 40% to 60% of their menu prices because of these practices.
Another major issue raised by the APHA is the delay in payouts from Swiggy, which reportedly holds restaurant earnings for up to 12 days. This delay places immense financial strain on smaller establishments that rely heavily on timely revenue to sustain their operations.
Allegations of Unethical Practices
The APHA has accused Swiggy of implementing “uninformed discounts,” where price reductions are applied without consulting restaurant management. This practice not only affects the profits of the establishments but also leads to confusion among customers regarding pricing. Furthermore, members of the association expressed concerns about Swiggy altering restaurant menus without prior consent, often selling items at lower prices or offering promotions like “Buy One Get One Free.” Such actions undermine restaurants’ pricing strategies and can damage their brand integrity.
Additionally, the association criticized Swiggy’s refund policies, stating that neither customers nor restaurants receive refunds for canceled orders. This lack of accountability exacerbates the financial difficulties faced by restaurants already struggling with high operational costs.
Response from Zomato
In contrast to Swiggy, Zomato has reportedly engaged in constructive discussions with the APHA and has shown willingness to address many of their concerns. Zomato’s responsiveness has fostered a more favorable relationship with restaurant owners, highlighting a growing divide in how each platform is perceived within the industry.
Future Implications
The impending boycott against Swiggy signifies a critical moment in the ongoing tensions between food delivery platforms and local businesses. As APHA prepares to halt sales through Swiggy, it remains uncertain how this decision will affect both the delivery service and participating restaurants across Andhra Pradesh.
This boycott could serve as a wake-up call for food delivery companies to reassess their business practices and consider more equitable arrangements with restaurant partners. The outcome may influence similar actions in other regions as restaurant owners increasingly seek fair treatment in an evolving market landscape.
In conclusion, the APHA’s decision to boycott Swiggy reflects deep-rooted frustrations within the restaurant industry regarding commission rates, payment practices, and overall treatment by food delivery platforms. As the deadline approaches, all eyes will be on how both parties respond and whether any resolutions can be reached before October 14.
Entrepreneur Stories
Mahindra Group Launches Dedicated AI Division to Drive Innovation and Efficiency Across Its Business Portfolio!
Published
2 weeks agoon
September 24, 2024The Mahindra Group has taken a significant step forward in its digital transformation journey by launching a dedicated Artificial Intelligence (AI) division. This initiative, spearheaded by Bhuwan Lodha, aims to harness the power of AI across the conglomerate’s diverse business sectors, streamlining operations and enhancing overall efficiency.
Centralizing AI Efforts
The newly established AI division is designed to centralize all AI-related activities within the Mahindra Group. By consolidating these efforts, the group seeks to implement a more coherent and effective strategy for utilizing AI technologies across its various enterprises. Lodha, who previously served as the digital chief for Mahindra’s automotive sector, emphasized that the growing importance of AI over the past two years necessitated this focused approach. He noted that many companies had been experimenting with AI on a smaller scale, but now there is a concerted effort to bring these initiatives into mainstream operations.
Tailored Solutions for Diverse Sectors
The AI division is committed to developing tailored solutions that cater specifically to the needs of Mahindra’s diverse business units, which include automotive, real estate, and hospitality. The division will not only create proprietary solutions but will also seek out innovative technologies from startups and academic institutions globally. This collaborative approach aims to ensure that each sector benefits from cutting-edge advancements in AI.
Collaboration with Tech Mahindra
While the new division will not have the same capacity to hire domain specialists as Tech Mahindra, the group’s IT services arm, it plans to closely collaborate with Tech M to leverage their expertise. This partnership will facilitate the development and deployment of advanced AI solutions tailored to enhance operational efficiency across Mahindra’s various businesses.
Building Talent and Career Opportunities
One of the key goals of the AI division is to consolidate talent within the Mahindra Group. By creating a dedicated career path for professionals specializing in AI, the division aims to attract and retain skilled workers who can contribute meaningfully across multiple sectors. Lodha highlighted that this initiative would not only provide exciting career opportunities but also foster a culture of innovation within the organization.
Generative AI Implementation
Mahindra & Mahindra (M&M), a prominent entity within the group, has already begun implementing generative AI technologies in its operations. The company has automated maintenance processes for robots and heavy machinery on factory floors, significantly reducing downtime and improving productivity. Additionally, generative AI is being utilized to enhance customer service through advanced chatbots, which streamline interactions and save time for customer service agents.
Strategic Partnership with Google Cloud
In a complementary move, Tech Mahindra recently announced a strategic partnership with Google Cloud aimed at accelerating generative AI adoption across Mahindra’s businesses. This collaboration will leverage Google Cloud’s advanced AI technologies to develop applications that enhance critical business functions such as engineering, supply chain management, and customer service. By integrating these technologies, Mahindra aims to optimize operations and improve customer experiences significantly.
Conclusion
The establishment of a dedicated AI division within the Mahindra Group underscores its commitment to embracing technological innovation as a driver of business success. By centralizing its AI initiatives and fostering collaboration with industry leaders like Tech Mahindra and Google Cloud, the group is well-positioned to unlock new growth opportunities across its diverse portfolio. As this division evolves, it will be interesting to observe how it transforms operations within Mahindra and sets new benchmarks in various industries.
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