The price of cheese spiked, the consumer pulled back and one man stepped up to the challenge! David A. Brandon, Domino's Chairman and Chief Executive Officer. The choice was clear; look at the big picture, address the over all problems and move forward or sit back and tweak things until the economy turns around. He took the first choice and the industry should be proud he did!
Recently he stated: "The bold steps we have been taking to re-ignite our domestic system helped us gain significant traction last year. We succeeded in our primary goal of growing traffic all four quarters of 2009. Traffic growth was the most significant in the fourth quarter; and this positive momentum has continued thus far in 2010, as sales and traffic have increased significantly since the launch of our new core pizza."
One time niche industry leader Pizza Hut can only counter with price point cuts. Industry managers who believe that during times of change incremental tweaks will provide long term positive results may be right. Only however if they think franchisee calling HQ demanding change is a good thing!
Rationalization and justification will not satisfy investors in today’s world. Strategy must replace reactionary tactics if long term success if the goal! Success does leave clues Papa Murphy’s and Domino’s read the clues better than many others.
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http://www.foodservice.com/articles/show.cfm?contentid=4112&title=Restaurant Consumer Discontinuity