Pizza is an emotion and is a food that is known all over the world. A good pizza could often leave an eater speechless and is one food that could be purchased anywhere in the world. The fame of Pizza and its 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 a 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
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 Founder
Domino’s Pizza was founded in 1960 by 23-year-old Tom Monaghan who dedicated his entire focus to 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 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.
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 that demand creativity.