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Franchising - The success of Domino’s Pizza in Germany | MTP e.V.

How many branches are there in Germany?

Throughout Germany, Domino’s Germany has over 330 branches (as of July 2019).

What does the franchise concept look like at Domino’s?

Domino’s is not only the world market leader but also the market leader in Germany and offers a strong, globally proven franchise model under the motto "Number One in People, Number One in Pizza". Quality products specially tailored to the preferences of each country; fresh, tasty and quickly produced. Domino’s relies on strong partners and technical innovations. When the company is founded, there are numerous specialized consultants who can help you get started with the system.

What are the requirements for setting up a store?

  • Entrepreneurship and high motivation
  • Equity of at least € 45,000
  • Distinct service thinking and customer orientation
  • Basic business knowledge
  • First leadership experience and personal commitment
  • Willingness to maintain contact with the local business world

The system headquarters are in Hamburg. To what extent do the branches receive support from Domino’s Germany?

The system center has various departments that take care of individual needs.

  • For example, the Marketing department creates individual flyers
  • The expansion department helps with the search for construction objects as well as the construction of new branches
  • Every franchise partner has a management consultant available to answer any questions
  • The head office controls national advertising campaigns
  • The food department takes care of the procurement of (better) products
  • There is an academy for imparting system-internal and operational knowledge
  • The IT department takes care of the technical details

Which decisions can the respective branches make independently and which decisions are made by the system headquarters?

The head office provides the menu - this is the same throughout Germany. In addition, the head office specifies the suppliers and the products so that it tastes the same everywhere. It sets rules (hygiene, processes, uniform) that must be adhered to as a matter of urgency! Delivery areas are determined jointly by consultants from the head office and the partner. The partner can choose from different, predefined price categories and generate individual offers via campaign days or coupons. The headquarters itself also offers activities that are voluntary to take part in. The partners are their own company and thus decide for themselves about employees, wages, individual advertising measures and the like.

How many additional stores were created as part of the 2016 takeover of Joey’s Pizza Service in Germany?

Over 220 Joey’s Pizza Stores have been converted to Domino’s branches.

How long has Domino’s been represented in Erfurt?

Domino’s Erfurt Nord celebrated its 25th anniversary in 2018 - even though the first 23 years were called "Joey’s Pizza Service". The stores have only been listed under the name "Domino's" since the end of 2016.

There are a total of three stores in Erfurt. Do these belong together or are the branches operated by different franchisees?

The stores in Erfurt belong to Effekt GmbH, a successful franchise partner that currently operates nine stores in three cities in Germany (as of July 2019).

What is the marketing strategy for Domino’s Germany and for Domino’s Erfurt? How much freedom of choice is there here?

Product - quality, service and technology! These are the arguments in favor of Domino’s. Each store is responsible for implementing this and thus contributing to the brand's image. Technological innovations that already give Domino's in Australia a competitive advantage and that are gradually being introduced in Germany are, for example: Domino's everywhere (order via GPS), as well as the planned GPS shipment tracking, delivery robots, artificial intelligence, the appearance and ingredients of the Pizza rated and much more From print to online, from TV to radio, the various channels are used with different campaigns. As described above, there are price campaigns that are organized nationally and locally by themselves. These are to be understood both as a trial price for new customers and as a benefit for regular customers. In addition, the partner himself decides on local sponsoring or partnerships, public appearances and their own social channels. How much money and time each partner invests in their marketing is up to them. Only isolated actions that are bad for the image, such as radical, political slogans or representation / calls for illegal actions, are of course taboo.

Is the range of dishes uniform across Germany?

Yes. The menu is developed in the head office and is valid throughout Germany. Every quarter, new action pizzas are presented and adjustments to the menu are made if necessary. Exceptions are new products such as the Thick Shake, which are first tested on the market in some companies before they are introduced nationally.

Is it possible for Domino’s Erfurt to cook independently with regional specialties and Design ingredients?

No. The menu and suppliers are specified in order to maintain a Germany-wide system standard.

Are food trends taken into account in the selection of offers? If so, what are they?

Yes. The head office observes the market and also deals with special needs. In 2019, for example, they introduced a vegan pizza range for the first time.

How many people does the Erfurt site employ?

There are around 60 local employees in Erfurt, with a management and administration of around 10 employees.

How many pizzas does Domino’s sell in Erfurt every day?

An average of 500 Domino’s pizzas are currently sold in Erfurt per day (as of July 2019).

Are the ingredients sourced from regional suppliers or is purchasing centralized?

The supplier Transgourmet has various locations that supply the branches throughout Germany.