News & Analysis

Pizza chain Domino’s makes record profits thanks to focus on digital innovation

- August 13, 2015 2 MIN READ

Pizza chain Domino’s has attributed its strong growth in Australia over the last financial year to the company’s tech innovations, including its GPS pizza tracker.

Domino’s, which now boasts over 1,500 stores worldwide, has posted a net profit of $64 million, an increase of more than 50 percent from the year before.

Don Meij, CEO of Domino’s, said connecting with consumers digitally is the biggest opportunity for the company, with continued investment in new digital initiatives key to maintaining momentum. He added that the GPS tracking technology, which rolled out nationally in July across Dominos’ iOS and Android apps, is set to be the linchpin of the business locally.

“We have only just fired up the ovens on what is possible with GPS driver tracker. The rollout of the 15 and 20 minute service guarantee, a [Quick Service Restaurant] first, means customers will reap the benefits of piping hot, fresh pizzas, reduced waiting times, and increased convenience,” Meij said. 

“The algorithm behind the 15 and 20 minute delivery guarantee, as well as GPS driver Tracker, means it’s only activated when we can do this safely from an operations perspective. This move will see us compete in a new market, taking share from the convenient fast food drive-through outlets.”

Domino’s has also begun considering its carbon footprint, introducing electric scooters and push bikes to its delivery fleet.

The pizza chain is just one of a growing number of companies looking to expand their offering by going digital.

Starbucks has also seen impressive growth through its My Starbucks Rewards program, with over 10 million active users. Starbucks also processes over eight million mobile payments each week, equalling nearly 19 percent of US sales. McDonald’s last year opened an office in Silicon Valley in a bid to attract tech talent. The company also launched an app which allows users to prepare an order through their phone and choose which store to direct it to, and rolled out ordering terminals in stores.

Cadbury’s research and division team has also been using 3D printers to experiment with new chocolate bars.

Adam Harris, leader of the upstream innovation team at Mondelez International, said in an interview with Marketing Magazine, “I can go and talk to our industrial design team now, we can sketch some ideas, and by tomorrow they’ll have 3D CAD drawings done of those ideas. The following day, we’ll have a physical form that’s printed off a 3D printer, and then the next day we can turn that from a model into an edible product. It allows us to do rapid innovation.”

Image: Domino’s CEO Don Meij. Source: Facebook.