 Dominoes is an incredibly successful, enormous company. But how did they become so successful? What can we learn from the success of Dominoes as investors and business people? Dominoes was one of the fastest growing stocks in the last couple of decades. Outcompeting made you fortune 500 companies. Did you know more than one million customers around the world enjoy hot, delicious Dominoes products every day? How did they become so enormous serving millions of customers on a daily basis? Let's look into this. Dominoes is dominating the pizza market. Simple pizza delivery service has gone on to becoming an incredible company containing unbelievable growth and is a brand that is super recognized across the world. Every person that's thought about running a business or wants to know more about running businesses can learn from Dominoes enormous success. In this video, we will go through the history of Dominoes, why they're so successful and what makes them stand out in a crowded field in the takeaway and eatery market. Dominoes has managed to achieve global recognition including within 90 international markets serviced by more than 18,300 stores and is generating revenue in the billions. But where did the successful company all start and why are they so successful? In 1960, Tom Monaghan and his brother, James, took to the operation of Dominix. They secured a $500 down payment as part of the deal and the brother paid $900 for the store. The deal was secured by a $500 down payment and the brother actually borrowed $900 to pay for the first store. So this was humble beginnings at the start. The brothers plan to split the work hours evenly but James did not want to quit his job as a full-time postman to keep up with the demands of this new fledgling business. They found themselves working long hours. Within eight months, James traded his half of the business to Tom for the Volkswagen Beetle they used for pizza deliveries. An interesting decision since now the company and market cap is in the billions. Dominoes started out small with just one store in Michigan in 1960, fast forward more than 60 years and Dominoes has grown to become one of the most recognized and leading pizza brands in the world. Here's a brief history of Dominoes through the years. In 1989, Dominoes introduced its first new product, handmade pan pizza. That same year, the 5,000th Dominoes store in the world opens. 1992, Dominoes rules out breadsticks, its first national non-pizza menu. In 2007, Dominoes introduced online and mobile ordering for customers making their experience even more convenient and more easy to order pizza. It goes without mentioning they became so successful because they adopted the franchise business model within the company's history allowing business people to set up their own Dominoes. You yourself can actually apply to be a franchisee of Dominoes with some initial funding. Although as with every fast food restaurant, strict processes and procedures are in place to maintain quality standards to ensure no matter which Dominoes you walk into, they will always maintain that quality consistently across the board. In 2015, Dominoes launched DXP, a delivery expert, especially designed and built pizza delivery vehicle launched across 25 markets in the US. The car holds up to 80 pizzas and features a warming oven as well as a storage area designed for easy loading and unloading pizzas on the menu items. Dominoes showcase a suit of innovative technologies called Anywhere that allows customers to order in more ways and on more devices than ever before. But we've talked about some of the success of Dominoes but it didn't always go to plan. There was some blockages in the road. The brand suffered. The company faced enormous backlash in 2008. Complaints started flooding in from customers about the pizza such as the crust seemed lacking. Pizza, where's the love? How are it? Bread, sauce, cheese, fresh ingredients. Doesn't feel like there's much love in Dominoes pizzas. Dominoes, pizza crust, to me is like cardboard. And they had a buildup to the crescendo of all these complaints such as microwave pizza is far more superior. President of the company decided to start a brand new marketing campaign called Pizza Turnaround whereby they started out the new fresh recipes and provided better quality. And do you want to know what businesses often fail to do? Offer total transparency, brutal honesty and realistic responsibility. They took it all. They earned all the negative comments. They ultimately and most importantly listened to the customers. You have to remember this is at a time whereby social media was turbo charging in popularity and this negative word of mouth was absolutely decimating the company. The company was effectively on life support and by Patrick Doyle earning Dominoes mistake and making changes, this is what saved the company is why the company is so successful today even in the year 2022. They changed everything. And when I say everything, I mean absolutely everything. The crust, the sauce, the cheese to make it tastier, more memorable and more importantly, not like cardboard but this wasn't done without hard work. Chefs were working day in and day out to find the best possible combination of pizzas they can find and not taking a weekend off. This was serious. The life of the company was being held in the balance by the product quality. Ultimately Dominoes invested in a customer centric approach of producing the right pizza. This is mentioned in their papers and values. They state Dominoes is a purpose inspired and performance driven company with exceptional people who are committed to feeding the power of possible one pizza at a time. At the heart of our brand is a set of values that define our core beliefs on how we run our business, treat our people, support our franchisees and serve our customers. So the key word in this purpose is that they listen. They listen to their franchisees. They listen to the customers and they listen to the people involved in the business. After this monumental change in product quality, they then went back to the customer to ask about that pizza, the new pizza. On the website you can see a range of tweets of this pizza turnaround and the positive impact of word of mouth. One of the best tools of marketing is known as word of mouth because it's free advertisement. You don't have to pay for it. Ultimately your customers are your advocate for the brand. The company was spreading through social media platforms through a wild storm like Twitter with largely positive responses about the new fresh, tasty pizzas. So what did Dominoes do? They made a massive change. They reimagined, reinvented and rebranded themselves to become one of the best places to order pizza in the United States, United Kingdom and many countries across the world. So what can we learn from this as people who are interested in business? Firstly, it's the ability to listen to the customer, understanding the customer's needs and responding to customer's complaints. This has made the product and service better. These are paying customers. You and I are the lifeblood of this company. No customers, then there's no business. So the fact that they listen was the crucial success of this company. The ability to deliver efficiently and update you on the delivery journey every step of the way because it's not just about the product but it's also how quickly the product gets to you and they aim for 30 minutes or less. Another reason for success is the product itself. They keep the menu complex but simple at the same time. Being able to customize toppings and choose one of the unique pizzas and even desserts. Finally, and most importantly, it's the marketing. Listening to customers, obtaining positive word of mouth. Dominers are also very good at communicating their offers for pizzas, enhancing both customer acquisition, obtaining new customers and customer retention, having customers come back again and again. Now, what can we learn as a potential business owner or someone who runs one? It's important to listen. Don't underestimate negative word of mouth and understand that brand is king. Thanks for watching on screen now. You can see another interesting video. Consider clicking on it. Please subscribe and smash the like button for more business related content.