Domino’s Pizza

Domino’s Pizza

Dominoz PizzaDriving Operational Efficiency and Boosting Profitability: A Successful Consultancy Project in the Food Industry
Founded in 1960, Domino’s Pizza, Inc. (trading as Domino’s) is a multinational pizza restaurant chain based in the United States. The client is a franchise holder of Domino’s Pizza in the Africa market, with an impressive portfolio of over fifteen stores.
CChallenge ChallengeThe client faced several challenges, including extensive operating costs in the commissary resulting in high cost of goods, limited variety of products that didn’t cater to the local taste preferences of consumers, and high delivery costs that adversely affected their profitability.
AAnalyse Analyse

After aligning the core goals with the top management, the Knowhow team worked in harmony with the client’s team to tackle the challenges at hand. They started by analysing the raw material costs used in the commissary and pricing factors set by local suppliers.

They also examined and compared different suppliers who could provide similar products according to the franchiser’s standards. Additionally, they investigated shift and day-based cost factors in the commissary based on product type. To better understand the local market and bridge the gap between local taste preferences and franchising packages, the team conducted extensive market research. This involved interviewing existing consumers and conducting surveys to gain a deeper understanding of their expectations.

Lastly, the team applied cost per delivery, delivery cost per transaction, frequency of delivery per area, and other logistics-related indicators to develop a comprehensive roadmap for reducing the cost of logistics.

RResults Results

Through strategic approach and expertise, Knowhow helped the client overcome their challenges and achieve remarkable results.

The client was able to identify the key factors driving higher costs of goods at a product level by comparing them with sales performance. Furthermore, they onboarded four additional suppliers who could provide similar products, reducing costs and limiting their dependency on a single supplier.

The team also mixed and matched the manpower in the commissary based on their experience and knowledge in production and product types.

As a result, the client was able to launch five new products that were based on global standards but tailored to local tastes, boosting sales and customer retention.

The team identified the major cost factors affecting logistics and profitability, and restructured the logistics fleet as per store, using route optimization and capacity utilization practices.

Finally, they implemented result-driven key-performance indicators (KPIs) in the areas of customer service and logistics, production planning, and manpower utilization to drive continuous improvement and ensure long-term success.

EEffect to Business Effect to Business

The successful collaboration between the client and Knowhow resulted in significant improvements and positive outcomes.

Through their joint efforts, the team was able to reduce the operation cost by 3.4% from the production in the commissary, resulting in increased profits for the P&L.

Additionally, the expansion of the product range based on global standards and local tastes led to a 9% increase in order transactions, attracting more customers and increasing revenue. Moreover, the team was able to reduce the delivery cost by 2.5% on average per store, which had a direct and positive impact on profitability.

These outcomes demonstrated the effectiveness of the collaboration and the value of the expertise and approach offered by Knowhow.

Related Services:

Knowhow provided exceptional services throughout the project, leveraging their expertise in Supply Planning & Procurement, KPIs & Performance Management, and Customer Service & Logistics Management.

Their deep understanding of these areas allowed them to provide tailored solutions that addressed the client’s challenges and maximized their results. By working collaboratively with the client’s team, Knowhow was able to implement effective supply planning and procurement strategies, develop result driven KPIs and performance management practices, and optimize customer service and logistics management processes. These services were key in enabling the client to achieve their goals and drive continuous improvement in their operations.