THE ADJUSTMENT BUREAU
POSSIBILITIES TOPPED WITH PRIDE: DOMINO’S AT SKYRIDGE PREPARED FOR: PETER GRASSLEY, INVESTOR PREPARED BY: ERIN HEMMELGARN, JUSTIN HYER, ADAM LEWIS, & CLAIRE SONKSEN NOVEMBER 9, 2015
TRANSMITTAL MEMO November 2, 2015
MEMORANDUM
TO: Peter Grassley
FR: The Adjustment Bureau
RE: Alpine Investment
_________________________________________________________________________________________
Mr. Grassley:
As promised, enclosed is the project proposal for the site located at 3200 N and Center Street. The Adjustment Bureau has determined that a Domino’s franchise is the best investment opportunity for this property. We chose this investment because it is the most beneficial use of your property: the location allows for annual growth, takes advantage of the business provided by the high school students next door, and supports families living in the area. The Domino’s company is rapidly adapting to the modern world as the largest pizza chain in the world. It best contributes to the local variety of affordable, fast, and delicious food.
Enclosed are documents detailing our research and further reasoning behind this recommendation. Please note the case recommendation for more detailed information.
Please let us know if you have any questions regarding this matter as soon as possible so we can begin this process immediately. Thank you for this opportunity.
Sincerely.
The Adjustment Bureau
TABLE OF CONTENTS Transmittal Memo
Executive Summary
Recommendations
Financial Information
Execution
Immediately:
Six Months:
One Year:
Two years:
Domino’s: (what do we want to put here, and example from Gold’s Gym was bringing the big idea
Domino’s Current Business Model
Corporate
Licensing
Franchising
Business Goals
Goal x
Goal y
Goal z
Criteria in Choosing Domino’s
Benefits of Choosing Domino’s
reason x
reason y
reason z
Execution and Implementation of
EXECUTIVE SUMMARY
OPPORTUNITY AND PURPOSE The area of Lehi and Alpine Utah is a fast growing, high residential area with multiple public schools. Most of the residents are families in the upper middle class. The lot at 3200 North and Center Street is surrounded by high-density housing, a new high school, and business condominiums. With this information in mind, the lot will receive a wide customer base if it is focused on a family style restaurant. The domino’s franchise provides the greatest opportunity for growth in the community. Table 1 and Table 2 show……. AGENDA HERE FOR EXECUTIVE SUMMARY
Strengths
Weaknesses
Cheap/fast enough for students and student events
Not appealing to upper class
Established chain, familiar to parents/families
Only business in the shopping center
Wide variety of options
Rise in health consciousness could lower sales
Opportunities
Threats
Popular location for students to socialize
PIzza chains are common
Emphasize convenience meals for busy families
upper class not going there
Replicate previous Domino’s successes
Low staff retention
KEY POINTS Our decision is based on the following key points:
(1) Domino’s location amidst the growing family-friendly community will provide a more dense customer base.
(2)Domino’s provides a quick and easy lunch for students, can provide employment for students attending the high school, and can cater school events
(3) Domino’s proactive approach compensates for their weaknesses by embracing
modern technology.
(4)The yearly return after breaking even is $63,936. COST We estimate the initial investment to be $283,400. We assumed that a Domino’s restaurant makes an average of $12.95 a sale and 120 sales a day. Recognizing that roughly $7 of each sale will be used to cover labor and supply costs, we estimate that the company would break even in 4 and a half years. Every year past that we expect $63,936 in returns.
ACTIONS TO BE TAKEN
THIS IS WERID:
Submit information to the Domino’s Franchise Development Team.
Purchase land at 3200 North and Center Street in Lehi.
Six Months:
Break ground on lot, constructing building and parking lot.
Purchase insurance coverage for business.
One Year:
Furniture and equipment bought and begin installation.
Opening inventory and supplies.
Opening advertising.
Seek employees (training provided by Domino’s)
Two Years: Restuarant up and running.
Conclusion/RECOMMENDATION HERE !
INTRODUCTION
BACKGROUND HOOK Lehi is an area of Utah that has been developing rapidly for the past 20 years. The development in this area has contributed to the success of many new businesses. We expect growth to continue seeing as there are many residential areas still under construction and plans to build more in the near future. As a result, we propose that Mr. WHATS HIS NAME invests in Domino’s at (address) based on the following three reasons:
(1) Domino’s location
(2) Domino’s benefits TO STUDENTS
(3) Domino’s USE OF MODERN TECHNOLOGY
SCOPE THE SCOPE OF THIS PROJECT marketing strengths that Domino’s provides at this specific location and provide a complete analysis of the costs and returns over the first five years. WRITE OUT WHAT THE TABLE SAYS.
Included
Excluded
Finance/Accounting Marketing
Crisis Management Protocols
Strategy
Expansion Plans
Segmentation
Advertising Strategies
Production ORGANIZATION This case will proceed presenting the same topics in the order that they are presented in the scope table above. We will discuss, analyze, interpret, and evaluate important aspects of finance/ accounting, marketing, strategy, segmentation, and production. We feel that focusing on these topics will clearly orient investors and help them make this important investment decision.
BODY
DOMINO’S LOCATION You’re running late coming home from work and know you won’t have time to make dinner, what do you do? Your teenager just called and said he’s bringing the soccer team over to celebrate their win after the game, what do you do? Your car is in the shop, your fridge is empty, and your daughter is starving, what do you do? With Domino’s conveniently located at the corner of your neighborhood it is the fastest, tastiest, and cheapest way to feed a family on a time crunch. WITH TONS OF DIFFERENT STRINGS OF QUESTIONS YOU HAVE TO ANSWER THEM. MAYBE CHANGE INTRO PARAGRAPH.
Alpine Utah is a developing city full of growing families, with big plans to expand in every direction. Although not all families are alike, each face similar problems, one of which not being enough time in the day. With a restaurant such as Domino’s so close, these surrounding families will easily be able to stop by on the way home from work to pick up dinner, in the time period of less than 5 minutes.
Domino’s is committed to customer satisfaction, and with their 30 minute delivery guarantee or free order, families will greatly benefit (Hot Pizza). Domino’s will quickly become the number one restaurant in the minds of these families, as the city of Alpine has an area of just over seven square miles, making it quick and easy for Domino’s delivery staff (Alpine, Utah). Domino’s is providing families with more time to focus on the important things in life by offering the pleasure of a hot, delicious meal delivered straight to your doorstep in less than half an hour.
With a continually growing population of just over 10,000 residents, Domino’s will be in the heart of the action ready to provide families with just what they want when they want it (Alpine, Utah City Data). As these neighborhoods continue to develop, adding more residents, and as the young families continue to grow, so will the customer base of Domino’s. With their delicious recipes, and efficient delivery times, Domino’s is positioned for success in Alpine, Utah.
However, Domino’s will not be the only restaurant available in Lehi, even though it will be the fastest. Surrounded by competitors such as Little Caesars, Papa Murphys, and Malawis Pizza, Domino’s will be known not only for their top-quality product, but their family affordable and costeffective price point. Yes Little Caesars is cheaper offering pizzas for five dollars, but the quality and taste is nowhere near that of Domino’s maybe find a consumer report that proves this statement. With deals occurring weekly at Domino’s, combining not only pizza but pasta, breads, meats, and desserts, Domino’s will prove to be the family favorite of Alpine residents. uhhh the opening statement of these two paragraphs are exactly the same?
Through quick delivery, delicious food, and family-perfect price point, Domino’s will quickly become the most popular pizza place in town.
Group Case Sources
Hot Pizza: 30 minutes delivery guarantee at Dominos. Get Pizza HOT! (n.d.). Retrieved November 8, 2015, from http://www.dominos.co.in/hot-pizza-30-minutes-deliveryguarantee-at-dominos-get-pizza-hot
Alpine, Utah. (n.d.). Retrieved November 8, 2015, from https://en.wikipedia.org/wiki/ Alpine,_Utah
Alpine, Utah. (n.d.). Retrieved November 8, 2015, from http://www.city-data.com/city/ Alpine-Utah.html
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DOMINO’S BENEFIT TO STUDENTS Think back to when you were in high school, sitting in class anxiously waiting for the lunch bell to ring. Finally you hear it and your heart skips a beat because today is Friday and that means one thing: PIZZA! In 2013, a survey was done around the nation asking students what their favorite meal is at school is. The majority (15.73%) of students reported that their favorite meal is pizza (Sauro, 2013). Pizza doesn’t have to be a once-a-week treasure for high school students; you have the opportunity to provide this for them every single day by investing in Domino’s.
Domino’s provides a quick and easy meal for students during their lunch break. This quick service appeals to high school students because the average high school lunch break is only about 25 minuets. Domino’s enables customers to place orders ahead of time, making it possible to have pizza hot and ready when students are released from class for their lunch break.
In addition to being a quick lunch option, Domino’s is the perfect place for high school students to work. The minimum age requirement to be able to work at Domino’s is 16 years old and the hourly rate for a start up position ranges from $5.61-$9.77 (Domino's, 2015), (Payscale, 2015). These criterion fit perfectly for high school students looking for a job. As Domino’s hires students, a network will be built between student employees and student customers. This network will increase the popularity of Domino’s among high school students because they will have friends working at the store.
Another benefit is that Domino’s has the ability to cater school events. The proximity of Domino’s to the High school makes it an obvious choice for catering class parties, assemblies, faculty events, birthdays, sporting events etc. Domino’s can deliver to different locations within the school, making it easy to host a party or surprise a friend. This ability will make Domino’s a favorite choice for all school events.
The last benefit is that Domino’s is affordable. High school students are not known to be the wealthiest people. Generally, when lunchtime comes around, students are looking for something cheap and filling. Cheapism.com declares Domino’s as one of the top two “best cheap pizza chains” available. Domino’s pizza is a great choice for students because multiple students can share a pizza, which is plenty of food for a small group.
In conclusion, Domino’s proximity to a high school makes it a perfect choice because Domino’s (1) provides a quick and easy lunch for students, (2) can provide employment for students attending the high school, (3) can cater school events, and (4) is affordable. Help satisfy high school students’ love for pizza by investing in Domino’s.
Works Cited
Domino's. (2015, January). Job Applications. Retrieved from http://www.job-applications.com/ dominos-pizza-job-application/
Payscale. (2015, January). Human Capital. Retrieved from http://www.payscale.com/research/US/ Employer=Domino's_Pizza/Hourly_Rate
Sauro, L. (2013). Public Schools High School Lunch Survey Report. Randolph: Chartwells.
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DOMINO’S USE OF MODERN TECHNOLOGY When deciding to order a pizza, what factors affect which restaurant you choose? Taste may be the most important criteria, but other factors, such as price, ease of ordering, customer service, brand reputation, and other menu options may sway your decision from one company to another.
While Domino’s may not be the first place you think of when you’re craving a really good slice of pizza, the company has made vast improvements, all due to their “Pizza Turnaround” campaign in 2009. After receiving complaints of “cardboard crust” and “ketchup sauce” (Herold, 2010), Domino’s decided to implement a complete menu overhaul and created pizzaturnaround.com, a website that shared the process of creating a new pizza recipe (Oches, 2010). They also introduced their signature sandwiches, pasta, and side dishes in order to provide a more expansive menu (Lutz, 2014).
This increase in transparency and proof of savvy marketing shows that Domino’s is a company that values relations with its customers. The first quarter after this overhaul yielded a 14 percent increase in sales (Touryalai, 2013) -- this strategy pays off.
Earlier that year, Domino’s experienced a public relations crisis when two employees in North Carolina filmed a video demonstrating some very unsanitary food practices. After the video went viral, Domino’s was forced to put its newly formed social media team into action to figure out how best to assure viewers that these practices were not the norm (Jacques, 2009).
Though the crisis was effectively managed, Domino’s realized that its social media presence was severely lacking, and made more concentrated efforts to better communicate with its customers (Jacques, 2009).
One example of these technological advances is new ways to order pizza from Domino’s. With the Domino’s phone app, customers can create a profile with their favorite pizza, and by logging in with their social media accounts and phone numbers, can now order a pizza by simply texting or tweeting Domino’s a pizza emoji. The Domino’s app has a Siri-assistant that allows customers to place orders verbally, and some cars are even able to order pizzas for you (Domino’s Anyware, 2015).
Once a pizza has been ordered, the online Pizza Tracker feature allows customers to see what stage of completion their order has reached and anticipate when it will be delivered.
To further create transparency and exhibit the quality of its product, Domino’s has implemented a plan to completely overhaul its storefronts, allowing customers to watch their pizzas being made. By taking pizza production into the front of the store rather than the back, a “pizza theater” experience is created, giving guests a close-up view of what goes into their meal (Tanyeri, 2013).
In conclusion, though Domino’s may not be the most high-quality pizza chain that exists, the company more than makes up for its weaknesses by embracing modern technology through (1)
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improved customer relations and a better social media presence, (2) offering high-tech ordering options, and (3) responding to feedback from the modern-day customer who expects more from their restaurant by renovating physical facilities.
References
Domino's Anyware,. (2015). Domino's Anyware. Retrieved 9 November 2015, from https:// anyware.dominos.com/ Tanyeri, D. (2015). Domino’s Delivers a New Guest-Friendly Pizza Theater Prototype - restaurant development + design. Rddmag.com. Retrieved 9 November 2015, from http://rddmag.com/ design/restaurant-profiles/71-dominos-delivers-a-new-guest-friendly-pizza-theater-prototype Touryalai, H. (2015). Forbes Welcome. Retrieved 9 November 2015, from http://www.forbes.com/ sites/halahtouryalai/2013/10/15/technology-not-pizza-helps-dominos-crush-competitors-andgrow-faster-than-mcdonalds-overseas/ Jacques, A. (2015). Domino’s delivers during crisis: The company’s step-by-step response after a vulgar video goes viral. Retrieved 9 November 2015, from http://www.prsa.org/Intelligence/ TheStrategist/Articles/view/8226/102/ Domino_s_delivers_during_crisis_The_company_s_step#.VkAUGa6rSt8 Herold, T. (2010). Domino's Pizza Turnaround Pays Off. Entrepreneur. Retrieved 9 November 2015, from http://www.entrepreneur.com/article/218649 Lutz, A. (2015). Domino's Is Suddenly The World's Hottest Pizza Chain.Business Insider. Retrieved 9 November 2015, from http://www.businessinsider.com/dominos-turnaround-story-2014-10
Oches, S. (2015). Domino's Pizza Reinvention Gains Huge Sales - QSR magazine. Retrieved 9 November 2015, from https://www.qsrmagazine.com/menu-innovations/many-acts-domino-spizza