Gregory Morris’ Post

Domino's Pizza: Turning the Tables in the UK Domino's Pizza in the UK faced a formidable challenge in the late 2000s. Known primarily for fast delivery rather than quality, the brand struggled with a poor reputation among British consumers. This perception was a significant barrier, as UK customers increasingly valued quality in their dining choices, even in fast food. Recognizing the need for a drastic change, Domino's UK embarked on a transformative journey that would not only revamp its product but realign its entire operational ethos to quality and customer satisfaction. The turning point came when Domino's UK decided to listen—really listen—to their customers. They launched an extensive feedback initiative that involved social media listening, customer surveys, and direct feedback channels. The message was clear: the quality of the pizza was not meeting expectations. Armed with this insight, Domino's made a bold move. They publicly admitted their shortcomings in quality and committed to making substantial changes, a risky strategy that could have alienated customers further but instead began to rebuild trust. Domino's UK then undertook a comprehensive overhaul of their pizza. This wasn't just a minor recipe tweak; it was a complete reinvention. The company improved every element of their pizza, from the freshness and source of their ingredients to their dough, which was now hand-stretched and never frozen. They introduced a guarantee—great pizza or your money back. This promise was a tangible manifestation of their new commitment to quality. However, changing the product was only part of the equation. Domino's knew that to truly transform their image, they needed their entire team on board. To achieve this, they overhauled their training programs, focusing on the importance of quality in every step of the pizza-making process. This training was not just for new hires; even seasoned employees were retrained to ensure everyone met the new high standards. The results were dramatic. Customer satisfaction scores began to climb, and sales followed. Domino's UK's transparency about its past faults and clear communication about the steps it was taking to improve resonated with customers, turning many previous skeptics into loyal patrons. Moreover, Domino's didn't stop at the product; they continued to innovate with technology, enhancing their ordering app and improving delivery times. Each step reaffirmed their commitment to quality and customer service, helping to cement their newfound reputation. #StoriesOfAlignment

Apparently I didn't have enough reasons to stop ordering take-out. Just saying the words "customer savings" doesn't actually mean anything when you can arbitrarily change the prices of your offerings on a whim. I expect to see a massive restructuring of the team in charge of this decision, and if not, I expect demand to tank. If I'm wrong, and this revolutionizes fast food, great for them and I'll need to hit the books on the 4P's again. But all I see is consumer frustration at a tone-deaf response to an ever increasing cost of living from a corporation that is not losing money. My basis for my criticism is the understanding that fast food is prioritized because of predictability of service, quality, and price. We begrudgingly accept rideshare "surge" pricing due to the perception of a limited amount of available drivers. You don't really want your customers to hold their nose when they buy from you, ESPECIALLY WHEN YOU SELL FOOD.

Time differentiated pricing is finally getting momentum also with the big fast food chains. This is a very welcome phenomenon (hands up those who never queued at a restaurant for too long), but looks like Wendy's botched the communications about their plans. Eiko pointed out this was about aligning with customer value. I couldn't agree more, but I think Wendy's might have even been confused with what they were actually doing. My three key improvement ideas for this case: · Be sure to understand if you are doing differentiation or dynamic surge pricing, or something in between (small variations around base price for example). Don't ever call it, or allow the press to call it, "surge pricing" unless you really plan to fend off customers at certain times. · Always frame it as discounts, even if there are scenarios where prices increase. · You don't need to take Uber approach to dynamic pricing. One percent price increase famously increases profits by 11%. Start small, test, learn and improve. Quiet launching also helps with click bait press this kind of move easily attracts. https://lnkd.in/gZv8WQ-d

Dynamic or “surge” pricing works well for ride sharing services….but fast-food? In a market already rattled by consumer reaction to inflation, it will be interesting to see if Wendy’s new approach to changing prices based demand will draw in customers at odd times…or turn off fans during peak traffic.

Oh this isn’t going to go over well. Unlike the ride share or even the food delivery service apps (that are referenced as a model to follow in this article), consumers have nearly limitless CHOICE when it comes to restaurants. And they will vote with their wallets, regardless of the loyalty operators believe they’ve built over the years. Consumers continue to be sensitive to food prices as a top driver for purchase decisions, and really don’t care if there are legitimate economic reasons for them. Intentional, revenue-driving surge pricing on menus? Watch this space.

There is a big backlash against Wendy's surge pricing - it had to happen because unlike Uber's surge pricing which asks for more money when the supply of drivers are low and demand is high, Wendy simply wanted to extract more money from its consumers without providing more value. There is no supply constraint during lunch hours, they have all the food stocked and ready to be delivered. Now they are facing a huge backlash from consumers because people felt cheated. Morale of the story: If you want to earn more from your customers, then understand how you can create more value and in turn your customers will be willing to pay or purchase more. For example, consider adding a low carb sandwich and charge a dollar more. But don't try to riff off your customers. https://lnkd.in/gSKmcQCD

Interesting read with your weekend pizza 🍕 I have been posting about an disruptive delivery methodology due to changing consumer habits. Now, Domino's is seeing a changing dynamic in their customer preferences. People who order for delivery and those who stop by a restaurant to carry their orders out are mostly two separate groups with different priorities, Weiner said. Delivery is about convenience, and customers who order their food for delivery are willing to pay the extra fees and tip their driver, he said. Besides operating its own delivery service, Domino's also offers delivery through Uber. The third-party service accounts for roughly 3% of Domino's sales, Weiner told BI. "We see only about 15% overlap between our carryout and delivery customers," he said. But other, more budget-conscious consumers realize that they can get "more than another pizza" with the money they spend on delivery fees and tips, he said, adding that delivery is an "expensive convenience" for many US consumers. #pizza #homedelivery #economics

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I always tell myself "I'll go Maccies for lunch and have a salad or a grilled chicken wrap" before crying 15 mins later on the A50 after I've smashed out a large Big Mac meal & double cheeseburger. Maccies saw a positive impact on their overall sales, including burger sales, when they introduced salads and other healthier options to their menu. It attracted a set of new healthier customers and buyers like me who love the illusion of choice. If you want to be dancing like my man below and you sell any products online, you need to make sure at checkout you're offering multiple delivery options. We all like free/cheap delivery, but if I'm in Aus and I can choose a free 8-13 day postal option or an Express 2-4 day for $20 - My chimp brain is getting my goods faster and leaving me arguing with my Mrs about my spending later. Choice is king 👑 Squeeze those extra sales! #Ecommerce #Retailers #InternationalGrowth

Dynamic pricing is good business. When demand goes up, and supply can’t move fast enough to produce more, the price must increase. Amazon and Uber figured out dynamic, or surge pricing, eons ago. It’s time for barbershops and restaurants to follow suits. A local restaurant owner was able to make an additional $1500 per month from dynamic pricing on his burgers using technology called Juicier. The burger surged from 12 to 18! What do you think about dynamic pricing ?