Recently, the chief Executive for Domino’s revealed the secrets of the pizza chain’s worldwide success: localization! Any takers for a paneer pizza?
According to an article on Warc, pizza chain Domino’s is expecting India will soon become their second largest international market.
J. Patrick Doyle, the chain’s president and CEO, recently stated in the Economic Times that localization is the reason for Domino’s success in the region. This localization can be seen in two of Domino’s business choices, Warc says: the pizza toppings available in a country are chosen to fit the tastes of the inhabitants, and, franchises also have their own say in what they want to offer their customers.
Warc states that half of all available products available in the Indian Domino’s stores are localized. In fact, Doyle has revealed that franchises can make decisions about the products they offer all by themselves; they do not have to seek permission by the American headquarters. He says Domino’s attaches more weight to relationships than to structure and processes. This is also the reason why not everything has to happen by strict rules all the time.
The international possibilities that arise when using localization also interest Doyle greatly, Warc says. Different markets can adopts each other’s products: a number of pizza’s created in India, such as the chicken masala pizza, are now also sold in the UK, for example. Currently, India houses 650 Domino stores and according to Doyle, it is very likely that this number will overtake the 750 stores the chain has throughout the UK. In India, Domino’s has long ago entered a partnership with Jubilant Foodworks. Doyle thinks that their success in the country has a lot to do with the fact that Domino’s is cooperating with this local company.
After Domino’s immense success on the market, it is not surprising that other food chains are also turning their attention to India.
Burger King, for example, recently revealed that it will open stores in India as well. Sameer Sain, who works for Burger King’s joint venture partner Everstone Capital, told the Financial Times that they will adapt their products to fit the taste of the Indian consumer. Sain also said he is not concerned about competition, as he believes the market is nowhere near reaching a saturation point. Thus, all large brands can have their share on this emerging market.