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Learning from the Pizza people

Domino's takes 5.5% of sales from each franchised site and bills 5% of revenues for a national advertising fund (it also makes a margin on the foodstuffs it sells franchisees). In the pizza business, this works for Dominos and the franchisee. Domino's head office is constantly innovating because its target audience is constantly changing the way it buys food-to-go. For example, moving from phoning up to ordering on-line, which today accounts for 16% of sales and is growing fast. In the US, Dominos was initially successful because it worked out it was in the logistics business and what mattered was delivering pizzas precisely when you said you would. Today, it has to do more to stay ahead in food-to-go.
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