A question for you – which company had the greatest gain in its stock price between 2010 and 2020? You may think of Netflix, or perhaps a blue-chip stock like Coca-Cola or Exxon. You may be surprised to learn that the winner was Domino’s Pizza, which skyrocketed from $10 per share in 2010 to over $500 per share today.
How did Domino’s do this?
Obviously, our pizza consumption did not increase by 50x over the last decade, nor did the restaurant’s menu change dramatically. Like its competitors, Domino’s continued to sell pizza, sides, and drinks, but managed to gain 50% market share.
The answer is an incredible digital transformation.
- 2008: Domino’s launched Pizza Tracker technology to keep customers updated on the progress of their orders. This allowed Domino’s to extend its centralized services such as supply chain management and IT to its franchisees, thus simplifying each franchise’s operations and improving cost management.
- 2011: Domino’s launched its iPhone application, allowing customers to order on the go. The mobile-first approach worked exceptionally well and quickly became the dominant ordering channel.
- 2015: Domino’s launched Anyware that allows customers to order from anywhere and anytime through a device. Customers can order from a plethora of devices including Amazon Echo, Google Home, Siri, Smartwatches, Smart TVs, Slack, Facebook Messenger, Twitter, and more.
- 2020: Domino’s launched Domino’s Carside Delivery service as its way to fight against COVID but through digital transformation in its carryout method. Customers have now an option in application or website to choose Domino’s Carside delivery. Customers now have an option to stay in the vehicle while their order will be delivered at any location of the vehicle of their preference. Be it back seat or trunk. Making the entire process contactless, convenient, and safe.
For small to mid-sized restaurants, digital transformation is a necessity. While large chains like Domino’s have spent the past decades building the capacity for innovation in-house, smaller restaurants have become reliant on applications like Uber Eats or Skip the Dishes who can charge up to 30% per order. Not only does this add to your costs (Domino’s and other major chains rarely use delivery platforms), but it adds to your customers’ price, dilutes your brand, limits quality control and customer service, and limits your insight into customer data.
With the COVID-19 pandemic and related restrictions on in-person dining, these trends have accelerated, at the expense of smaller restaurants. The challenge for these restaurants is finding technology partners with the creativity and innovative thinking to deliver the type of value that is typically only available to the largest restaurant chains.
At NeuStyle, we want restaurants in Waterloo Region to overcome the challenges presented by the pandemic, keep customers satisfied, and find new ways to thrive through technology.