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J. Patrick Doyle, the CEO of Domino’s Pizza, has successfully turned the company around from the social media crisis it experienced when he took the helm 18 months ago.  He accomplished this by putting out his own video addressing the issue and offering transparency to the public by receiving feedback via Twitter and Facebook.  Domino’s Pizza has also instituted online ordering.  With increased sales in the U.S., he is now eyeing emerging markets in other countries, reports Crain’s Detroit Business.

When J. Patrick Doyle took the helm 18 months ago at Ann Arbor-based Domino’s Pizza Inc., the nation’s largest delivery pizza seller had just rolled out a new pizza recipe and was in the middle of a social media crisis after a video of the shenanigans of a couple of franchise employees went viral.

Doyle put out the public relations fire by creating a video of his own addressing the issue. Then he took transparency to a whole new level by letting Domino’s customers voice their opinions in a live Twitter and Facebook feed on its website — editing only for vulgar language.

The changes appear to be paying off. Domino’s last year reached $5.6 billion in global retail sales, a company high.

Net income was $87.9 million, up from $79.7 million for fiscal 2009. Through the first three quarters of 2011, Domino’s has generated net income of $74.5 million, compared with $63.7 million during the first three quarters of 2010.

But Doyle isn’t content. He is pushing Domino’s into emerging markets like India, England and Saudi Arabia. Doyle says that sometime next year there will be as many international stores as there are stores in the United States. Domino’s currently has 9,541 stores worldwide.

Doyle spoke with food reporter Nathan Skid about the company’s growth strategy, product lines and use of social media.

How important was the move to online ordering? Did it grow at the rate you projected?

It’s been national since 2007. Online ordering has clearly grown faster than we expected it to grow.We knew that it made sense for a way for consumers to do business. What’s important is we see customer satisfaction levels are dramatically higher online. Order accuracy is higher because they are taking their own orders on the items they are choosing.

How does online ordering affect consumer habits?

People spend a little more online than they do over the phone. They have the menu in front of them and it reminds them that they can get other things like lava cakes.

Another benefit of online ordering is that our consumers are living online. Social media is more important than traditional mass media like television or radio, so it’s somewhere we have to be. Consumers want us to have a relationship with them.

It’s a critically important part of our customer feedback. We consider that if you complain online, we treat that the same as if you called us with a complaint. We will see it and get back to you.

Has social media changed Domino’s advertising strategy?

Social media is where our brand is moving. If you look at the advertising we do today, it’s a reflection of what is happening in social media, as opposed to a mass-media strategy that is supported by social media. The campaign where we were running comments unedited in Times Square — that commercial was what is actually happening in social media.

What is the current mix of national and international stores?

We are essentially split 50/50 now, but third-quarter retail sales were higher outside the U.S. Sometime next year, we will open a store outside the U.S. and have more stores outside than inside the U.S.

Is there room in the United States for more Domino’s Pizza locations?

We can still build about 1,000 stores in the United States. There are still areas in Detroit that aren’t serviced by Domino’s. Of those 1,000, most will come from franchisees, but from time to time we will buy or sell some. We are 90 percent franchised in the U.S., and we will stay at that percentage. But clearly the majority of store growth will be outside the U.S.

What is the current mix of national and international stores?

We are essentially split 50/50 now, but third-quarter retail sales were higher outside the U.S. Sometime next year, we will open a store outside the U.S. and have more stores outside than inside the U.S.

Is there room in the United States for more Domino’s Pizza locations?

We can still build about 1,000 stores in the United States. There are still areas in Detroit that aren’t serviced by Domino’s. Of those 1,000, most will come from franchisees, but from time to time we will buy or sell some. We are 90 percent franchised in the U.S., and we will stay at that percentage. But clearly the majority of store growth will be outside the U.S.

What is the current mix of national and international stores?

We are essentially split 50/50 now, but third-quarter retail sales were higher outside the U.S. Sometime next year, we will open a store outside the U.S. and have more stores outside than inside the U.S.

Is there room in the United States for more Domino’s Pizza locations?

We can still build about 1,000 stores in the United States. There are still areas in Detroit that aren’t serviced by Domino’s. Of those 1,000, most will come from franchisees, but from time to time we will buy or sell some. We are 90 percent franchised in the U.S., and we will stay at that percentage. But clearly the majority of store growth will be outside the U.S.

Photo by mjrumali