Domino’s Restructures for Accelerated Growth

Domino's Pizza, Inc. unveiled a new operating structure designed to streamline the organization and reallocate resources to accelerate the growth and expansion of the company.

The new organizational and cost structure will allow Domino's to invest in new stores, purchase new point-of-sale technology, accelerate product development and quality assurance activities, enhance its service to franchisees, and upgrade its marketing initiatives.

"We're on pace for another record year," said Domino's chairman and chief executive officer David A. Brandon, who assumed leadership of the world's largest pizza delivery company in March. "Our third quarter marked the 25th consecutive quarter of increased sales. We're now in a position to focus our efforts on making Domino's even stronger and more competitive in the marketplace."

A primary focus of the new structure is to enhance the company's relationship with, and improve the performance of, its more than 1,300 U.S. franchisees, who operate more than 3,900 stores. The Company operates an additional 650 stores in the U.S. Domino's has created two franchise area offices and six franchise field offices to meet the needs of its network of owner-operators, in addition to its two corporate operations offices. Combined with changes to the field marketing and corporate operating structures, Domino's management will be market-focused, providing greater opportunity to be more competitive at the local level.

"We're positioning ourselves to achieve three important and fundamental requirements for future success," Brandon said. "Simply put, we want to build our brand, maintain high standards at all levels, and achieve flawless execution throughout our organization, particularly at the store level."

As part of this process, approximately 100 positions, mostly administrative, were eliminated from the more than 3,000 salaried positions Domino's provides in various capacities throughout the country.

The restructure is part of a number of initiatives recently undertaken to strengthen the Domino's brand. In mid-November, the company launched its first-ever product line, named Italian Originals™, and earlier this week announced its selection of Deutsch (New York) as the agency to handle the television and print creative development of Domino's national marketing initiatives.

Within the past several months, Brandon has refocused the company's leadership, putting new management in place in Domino's International and franchise operations divisions, and elevating the positions of human resources, information systems/technology and communications to better reflect his priorities in moving the company forward.