The No. 2 pizza chain is trying to freshen its image.
A pair of mustachioed pizza makers in blue aprons — visible from behind a glass display at a new Domino’s store in Seattle — tossed dough into the air as a handful of corporate executives looked on.
Domino’s calls the concept “pizza theater,” because customers now can come in and watch their orders being made.
“This is the way we always made our pizzas. A lot of people just had no idea,” said Domino’s Chief Executive Patrick Doyle, who was in Seattle last week to see the new store. “It was sort of one of those lightning-bolt moments where we said, ‘Gee, maybe we should show them.’ ”
The new look is part of a four-year-long effort to freshen the pizza chain’s image and boost its growing ranks of carryout customers.
The open-kitchen format includes seating for a dozen or so people, a chalkboard where customers can leave comments, and a refrigerated section for grab-and-go items such as salads and milk.
Founded in 1960, Domino’s long has been known for inexpensive pizza delivered to your doorstep. Its 30-minute guarantee helped make it the world’s largest pizza-delivery company in the 1980s (though it later had to drop the pledge amid charges that it led to reckless driving).
Today, Ann Arbor, Mich.-based Domino’s holds a 22 percent share of the U.S. pizza-delivery market and ranks No. 2 overall among U.S. pizza chains.
More than two-thirds of U.S. consumers buy carryout pizza at least once a month, making carryout the most popular pizza format, according to research firm Technomic. Nearly half of all pizza orders are for carryout, while a third are for delivery and a fifth are for eat-in.
Experts say that if a Domino’s store is nearby, many consumers prefer to pick up their orders and save a few dollars that otherwise would go to a delivery fee and tip.
Domino’s jumped on the trend last year when it began offering a weekday pickup promotion of a large three-topping pizza for $7.99. It also redesigned its logo, dropping the word “pizza” to reflect a larger menu, including sandwiches, pasta and chocolate “lava” cakes.
Doyle said the plan is to redo the greater Seattle area’s 74 franchised locations by midyear, which would make Seattle the first market to be completely overhauled.
Doyle said Domino’s also is setting out to hire 800 new full-time and part-time employees locally — something he attributed to new store openings, as well as solid sales growth.
Domino’s has about 4,500 U.S. franchised stores, as well as 390 company-owned stores. Its U.S. sales at stores open at least a year rose 3.3 percent in the third quarter, and its stock trades at the upper end of a 52-week range between $28.17 and $47.91.
Pizza Hut is the largest U.S. pizza chain, with an 18 percent market share, followed by Domino’s, at 11 percent, and Papa John’s, at 7 percent, according to Technomic.
And new competition
Domino’s also faces stiff competition from newcomers such as Seattle-based MOD, which stands for “made on demand.” With eight stores in Seattle, MOD sells individualized pizzas for $6.88, letting customers choose from 10 predesigned offerings or create their own combination of toppings.
MOD CEO Scott Svenson said his company caters to people who are increasingly discerning about what they eat, even if pressed for time and money.