Domino’s Pizza: The food industry’s benchmark for tech and innovation

MANILA, Philippines - If you were to name a prominent technology company off the top of your head, firms like Facebook, Google or Microsoft might immediately come to mind. But one tech company that you may have easily overlooked is the American pizza chain Domino’s Pizza. Over the last decade, the company’s passion to deliver an amazing customer experience through innovative technology became so apparent, that Domino’s is now considered “a technology company that sells pizza.”

Domino’s recognized early on that the future of fast food was no longer just anchored on offering end-products to consumers; instead, it was predicated on improving their experience and journey toward these products. Given this, the company adopted a progressive, digital-first, and technology-enabled mindset in order to fulfill this need.

Putting this outlook into action has resulted in remarkable gains for the pizza giant: Domino’s has recorded unprecedented growth in terms of sales, through its global network of 14,000 stores located in nearly a hundred countries. Perhaps more indicative of the company’s revitalized direction is the fact that Domino’s is now consistently ranked among the top five companies in the world in terms of online transactions. In the US, for example, 40 percent of its total sales is completed through a digital channel. 

Meanwhile, in a country like the Philippines, it is no secret that technology and innovation is widely embraced by Filipinos. According to the Digital in 2017 Global Overview report, 60 million Filipinos – or 58 percent of the total population – have access to the internet, spending an average of nine hours online every day, the highest in the world. It is only natural that the tech-giant Domino’s would be drawn to the deep connection and affinity both parties share over technology.

As some may recall, Domino’s first made its presence felt in the Philippine market as early as the 90s, but it wasn’t until Goldilocks Bakeshop acquired its country franchise when the pizza delivery expert truly started making its mark. 

“At the time, Domino’s International believed that the Philippines possessed all the right criteria to become a breakthrough market. They first approached Goldilocks in 2009, and after a period of dialogue and alignment, the partnership opened its first Domino’s store in Manila in January 2011,” said Pinky Yee, who was appointed to lead Domino’s back in 2014.

It was perfect timing and synergy for both key players. Being the country’s number one bakeshop, Goldilocks had already established numerous manufacturing facilities across the country. This meant the bakeshop could easily supply Domino’s with the raw materials it needed, particularly the high quality pizza dough that Domino’s Philippines has since become famous for.

Pie-tech delivery

Yee admitted that it was relatively challenging for Domino’s technology-empowered behavior to be fully adapted under present local conditions. “Technology is the heart of Domino’s. That is hard to implement and maximize if the internet connectivity and network infrastructure is sub-par,” she explained. “Accordingly, we not only have to work with the telcos, but property owners and landlords in areas with no internet access.”

Granted that internet connectivity is not entirely needed for customers in-store, Domino’s entire system is inter-connected to a central, cloud-based network that includes every store, the main headquarters, and key components of the supply-chain. “This allows for seamless communication, analytics, and performance tracking. Our entire fulfillment infrastructure is constantly being updated, thus we are continuously finding new ways to do things better, faster, and more effectively,” Yee pointed out.

The Domino’s Philippines delivery system – which the brand has always been known for – has likewise been fine-tuned by the latest technology. Every aspect of its “store-to-door” operation is based on precise metrics, and is supported by the most up-to-date mapping technology.

Right on track

It is was customer engagement that compelled Domino’s to develop groundbreaking digital technologies such as its Pizza Tracker, a feature in all Domino’s Pizza websites, including the Philippines. A unique competitive advantage, this innovation was borne out of bringing the in-store experience to the online world. All Domino’s Pizza stores allow its customers to fully interact with the ordering process, and this was brought to the virtual world when customers order through its website.

“You’ve all heard the expression ‘knowing is half the battle?’ Well, the Domino’s Pizza Tracker does just that, and it has been a game-changer in terms of elevating our customers’ experience,” Yee enthused. Through the Pizza Tracker, each stage of an order is monitored, thus allowing customers to see the real-time status of their order. “Has the pizza been made? Is it now in the oven? Am I going to eat soon? Whether in-store or through delivery, the Domino’s Pizza Tracker eliminates the guesswork, and permits the customer to participate through observation,” she further added.

For in-store customers, the pizza tracker experience is complemented by the wide-open pizza theater and kitchen, which lets diners see for themselves how their pizza is made, Yee said. This assures the consumer of product safety and quality, apart from making them feel participative and involved with their orders.

A bigger slice

At present, Domino’s Philippines is determined to open more stores strategically located across the capital, so that more people can enjoy hot and fresh pizza.

“We limit deliveries only within a certain radius and distance from the store because we have to make sure the pizza is still hot when delivered to a customer. To access a bigger market, we really need to make our presence felt all over the metro,” Yee explained. “We already have so many potential sites in the pipeline and our direction is to at least one Domino’s store in each city of Metro Manila.”

She recalled that when she first came on board Domino’s by the end of 2014, they only had 11 stores. Before Domino’s, Yee ran Goldilocks operations for 10 years and then the marketing division for 15 years. With Yee at the helm, Domino’s expanded to 35 stores across Manila in the past two years.

Given the wide variety of pizza brands and specialty stores available in the country, it was relatively much more difficult for Domino’s to gain a foothold in the local market and drive it toward growth. As always, however, Yee is inspired by the challenge, and is confident in the way that her company has chosen to overcome it.

“There are bigger, more established pizza brands in the Philippines, but I think the Filipino consumers have felt the difference in the way Domino’s does things,” Yee said. “Our dominant selling idea is to use technology for the sole purpose of uplifting customer experience, and to allow them to engage with our brand in an interactive way across all digital touchpoints. Right now, we are definitely leading the way for the industry in these aspects,” she concluded.