With just $15 in his pocket and a dream to revolutionise the fast food industry, Tom Monaghan purchased a small pizza store called DomiNick’s in Michigan in 1960.
This humble beginning evolves into Domino’s Pizza, a global QSR giant with a particularly remarkable success story in India.
When Domino’s first entered the Indian market in 1996, many would’ve doubted whether a Western pizza chain could succeed in a country known for its rich and diverse culinary traditions.
The initial years were fraught with challenges but today, India has become Domino’s largest market outside the US, with their rapid expansion strategy by selecting locations carefully. Now, the chain has over 1,800 stores across 390 cities, serving more than 28 million pizzas annually.
This is the story of how Domino’s began its journey in the US and went on to achieve massive success in India.
Backstory: The initial stages of Domino’s pizza
The Domino’s business journey wasn’t straightforward.
After buying DomiNick’s with his brother James in 1960, Tom soon became the sole owner when James traded his share for a Volkswagen Beetle.
Renaming the business “Domino’s Pizza” in 1965, Tom introduced the concept of pizza delivery within 30 minutes – a promise that would later become central to the company’s global success.
Monaghan was obsessive about efficiency and quality. So the delivery boxes were redesigned to keep pizzas hotter, and a system was developed to track delivery times. The brand also focused on a limited menu to ensure consistent quality. By 1978, the company had expanded to 200 stores.
When Domino’s entered India in 1996 through a master franchise agreement with Jubilant FoodWorks (a name then changed from Domino’s International for India), the initial reception was not overwhelming.
Pizza was considered a premium, western indulgence rather than an everyday meal option. The first few years were dedicated to understanding the Indian palate and building awareness about pizza as a concept.
Domino’s massive success in India
- 1995: Domino’s Pizza India Pvt. Ltd. was incorporated, and the master franchise agreement was signed.
- 1996: First Domino’s store opened in New Delhi.
- 1998: Franchise rights extended to all of India and Nepal.
- 2004: Launched ‘30 minutes or free’ campaign.
- 2012: Opened 500th store; launched online ordering platform.
- 2014: Became the largest Domino’s market outside the USA.
- 2016: Opened 1,000th store.
Source: Jubilant FoodWorks
With the brand’s commitment towards providing great pizzas with greater efficiency, Domino’s began to witness huge success.
Active Domino’s Stores in India
Source: Free site report by RetailIQ
This massive Domino’s success in India can be attributed to several key factors:
i) Strategic expansion beyond metros
Rather than concentrating only on metropolitan cities, Domino’s aggressively expanded into Tier-2 and Tier-3 cities, often becoming the first international food chain in many smaller Indian cities. This strategy helped build strong brand loyalty in emerging markets.
Today, Domino’s holds over 70% of the organised pizza market in India, with revenue exceeding ₹4,500 crores annually.
The chain opens approximately 180 to 200 new stores each year and aims to double its current presence from 2000 stores to 4000 in India in the coming years.
Why rapid expansion is the key to success?
Rapid expansion has been fundamental to Domino’s success in India by creating a first-mover advantage, particularly in underserved markets.
By aggressively entering Tier-2 and Tier-3 cities ahead of competitors, Domino’s established strong brand recognition and customer loyalty before any meaningful competition could emerge.
However, expansion strategy should be handled delicately as even big brands like Big Bazaar suffered from choosing unprofitable locations without proper location analysis.
Several factors affect retail location choice so it is best to utilise location data and advanced custom ML models to your advantage to ensure you factor in multiple success-defining factors such as foot traffic, competition, local customer preferences, buying behaviour, customer density and various other location demographic factors.
i) Menu localisation
Understanding that Indians prefer spicier options, Domino’s began to restructure its menu according to the taste buds of India.
Domino’s introduced exclusive items that resonate with Indian consumers like Peppy Paneer, Cheese Burst, and the Taco Indianised with local spices.
Domino’s also introduced many vegetarian-focused options to cater to a larger demographic.
ii) Price adaptation
Domino’s introduced smaller, affordable pizzas starting at just ₹49, making them accessible to middle-class families and young working professionals.
Their “Pizza Mania” range which is targeted at cost-conscious consumers, helped transform pizza from an occasional luxury to a regular meal option.
iii) Technology integration
Domino’s India was one of the first quick-service restaurants to embrace online ordering, developing a user-friendly app. During the COVID-19 pandemic, they’ve also quickly pivoted to contactless delivery to maintain their market dominance.
Clever marketing campaigns: One of the key reasons behind Domino’s success story
Just like in the US, Domino’s changed consumer’s food delivery perception with its “30 minutes or free” delivery guarantee, which became their marketing masterstroke.
In India, however, the company went beyond this promise to connect with local consumers.
One of Domino’s most successful campaigns in India was “Khushiyon Ki Home Delivery” (Delivering Happiness at Home), which resonated deeply with Indian family values.
This emotional campaign showcased how Domino’s wasn’t just delivering pizza but bringing families together.
The brand also created India-specific initiatives like “Pizzas for Polio,” where they donated a portion of sales to polio eradication efforts, combining business with social responsibility in a way that connected with Indian consumers.
During cricket season, Domino’s “Dil, Dosti, Domino’s” (Heart, Friendship, Domino’s) campaign linked India’s passion for cricket with pizza consumption.
Also, the brand offered special match-day combos and created cricket-themed pizzas during major tournaments like the IPL, Domino’s positioned itself as the perfect companion for watching India’s favourite sport.
Key takeaways from Domino’s success story
The Domino’s case study reveals multiple key takeaways for retailers as below:
1. Localisation is critical
Domino’s didn’t simply transplant its American model to India but thoughtfully adapted to local tastes, preferences, and economic conditions.
2. Cautious yet rapid expansion works
Domino’s adopted a cautious yet rapid expansion plan in India by carefully selecting store locations in high-demand areas, while entering Tier II cities and beyond.
Proper location selection ensured each outlet could meet the brand’s operational standards, and Domino’s managed to scale efficiently. This approach allowed the company to maintain quality while expanding its footprint across the country.
3. Operational excellence matters
The 30-minute delivery guarantee worked in India despite challenging traffic conditions because the company invested heavily in delivery infrastructure and logistics optimisation.
| Related read: Efficient route optimisation with location data
4. Technology adoption drives growth
Early investment in digital ordering systems gave Domino’s a significant advantage during India’s digital transformation.
5. Cultural relevance builds loyalty
By connecting with Indian values and celebrations through marketing campaigns, Domino’s transformed from a foreign brand to a household name.