Dominos is a pizza delivery company. It offers take-out, delivery and sit-down restaurant services based on the franchising option. As of the year 2012 it owned more than 9,742 service centres and franchises. It is located in more than 70 international markets other than its home country-the United States. Its key business segments are hence domestic stores, domestic supply chain and international (Reuters, 2014). Having a domestic supply chain helps Dominos cut back on costs and this is an advantage compared to its competitors. In the supply chain arena, it operates around 16 regional dough manufacturing centres. It has a fully equipped supply chain management with equipment and supply facility centres, vegetable and dough processing centres and more. Dominos also offers variety to its customers which have enabled it to retain loyal customers for a better turnover. Some of the varieties that it offers are based on the pizza type, the size, the toppings etc. It also offers promotions and coupons as a form of customer loyalty program (Reuters, 2014).
The domestic stores contribute to a greater part of the revenue of Dominos. In the year 2012 it was noted that its domestic segment earned as much as 32% of its consolidated revenue (Reuters, 2014). These sources include the store sales and the royalty payments that franchisees make to Dominos. Domestic stores operate under strict financial controls so as to have better financial transparency. Dominos provides operational audits and other marketing services to the stores.
Domestic supply chain
The domestic supply chain contributes to almost 56% of consolidated revenues. Here the company manages efficiency concerns by ensuring that pizza-related food products, spices etc are delivered to both the company owned and the franchise stores. The domestic chain supply meets most of the internal demands and this helps increase quality and reduces cost of product acquisition for franchisees. The company in fact has a profit sharing arrangement with the stores by having these integrated supply chain strategies. Dominos also applies innovation by using routing strategies, customizable software for supply chain management and more. This optimizes its business relationships with franchisees.