With this 12th edition of Outside In, I am introducing a new genre of articles called ‘What I Heard (WIH)’ which will cover carefully curated snippets of really interesting stuff from all the global content I have heard out myself – from podcasts, webinars, virtual events, chat shows and the like. Furthermore, I am inviting you to share with us – with some advance notice – any particular events/content pieces that might of your interest and you want us to share an in-depth WIH of the same after attending it. We will try and write a concise compilation of the same
In this week’s WIH piece, let us deep dive into the recent stories of Domino’s India – from its few struggles in the pre-pandemic times to their winning moments during the pandemic times
#What I Heard
A) The Organization – Domino’s India
1167 Stores across 269 Cities (In 140 of these cities, they are the only QSR)
9 Central Kitchens
Success Factors Since 1996:
a. 30-minute Delivery
b. Localizing the Pizza Taste E.g. Peppy Paneer Pizza
c. Pizzas starting at Rs. 35
d. Unique (Blended) Business Model: Dine In + Delivery
e. Execution Consistency
f. Strong National Supply Chain
B) Struggles – 2013-2017 – Growth had Stalled and Same Store Growth (SSG) was Falling; EBITDA Margins were Declining
C) Identified Key Issues That Needed to be Addressed
D) Back to Basics – Strategy for Growth Built on First Principles – 2017 Onwards
Customer Experience: Introduced the Apne Kaha Humne Kiya Campaign – a Consumer Listening and Interaction Program – and rolled out a Single Order Calling Number and Delivery Automation Solution across all Outlets
Product: Introduced the All New Domino’s with – Soft Crust, Tastier Sauce, More Toppings and More Cheese; Check the initiative video:
Value for Money: Stopped Daily/Deep Discounting (The BOGOFs – The Buy One Get One Free Offers) – Moved to Everyday Value Pizzas starting at Rs. 99 (Regular Size) and 199 (Medium Size)
Digital Connect: Launched the New Domino’s App – with the following Functionality and Services
They executed the following over the next 18 months:
E) The Results Were Gratifying – SSG Reached a 6-Year High; EBITDA Margins Improved Significantly
And, the App grew to be Rated the Best App in its Category
F) The Pandemic Arrives – Their Preparations
Step 1: 1-21st March 2020 – Anticipate and Prepare
Started preparation by January end itself, looking at global markets
PPEs procured, Store personnel in masks and gloves, Sanitizers in place
Store SOPs revised by 1st week of March itself – aligned with Zero-contact Processes
Step 2: 22nd March Onwards – Respond and Restore: Worked store by store, person by person – and focused on restoring consumer confidence
Step 3: Prepare for the New Normal – Ongoing – Built New Principles for Working
No compromise on Employee or Customer Safety
Maintain Customer Engagement
Batten the Hatches – Prepare for a long period of Disruption
Take Short Term Pain, Do Not Compromise on Long Term Model
G) During the Pandemic – The Initiatives
1) Zero Contact Delivery, Takeaway and Dine In Launched
2) Partnered with Leading Food Companies to Deliver Essentials using their Digital Ecosystem
3) Ran 3 Campaigns to maintain a Line of Communication with the Consumers
Store Safety Protocols:
Zero Contact Delivery:
Order Karna Safe Hain:
Takeaways for Business and Leadership
Pursue Correct Business Models
Maker Strategic Bets
Cut Efficiency and Waste
Divest from Non-core Areas
Lead with Symmetry of Information
Build Conviction and Hope Amidst Uncertainty
(It’s Okay) Not Having All the Answers
(It’s Okay) Showing Emotion and Vulnerability
Keep Morale
Manage Self
References and Sources
1) Flame University Webinar hosted by Dr. Niraj Mankad on ‘Leading in Crisis’ with Domino’s India CEO Pratik Pota (July 2020):