The hope, Mr. Weiner said, is that the new product, along with
the artisan pizza line it unveiled earlier this fall, will generate
interest in the chain's standard pizza as well.
A national TV campaign from CP&B, Boulder, Colo.,will begin airing
Nov. 28 and include Domino's execs Brandon Solano, who recently
became VP-franchise development, along with Tate Dillow, program
leader-product research and development. In the ad they talk about
how "under-cheesing" has swept the industry.
"In this economy, things are bad, people are cutting budgets,"
said Mr. Weiner. "The normal thing to do is raise prices and reduce
quality. We're making a purposeful effort to be on the side of
consumers. We could take cheese out, but we put more cheese in and
added more gourmet-type flavors."
In this economy, "restaurant-goers are more demanding than ever,
closely watching their food-service dollars and actively seeking
the best overall value," according to Technomic's recent Flavor
Consumer Trend Report. "In this way, flavor is more important than
ever before, driving customer traffic, shaping the overall dining
experience and helping operators stand out."
The report found that "more than two out of five consumers (42%)
say they are more likely to try new flavors than they were a year
ago, while 52% express a preference for restaurants that offer
unique or original flavors, up from 42% of those polled two years
ago."
Mary Chapman, Technomic's director-product innovation, said that
the Domino's product may score points with parents who want more
upscale taste who are dining out with kids that prefer plain
pizza.
Domino's is the No. 2 pizza chain in the U.S., with 11.2% share,
according to Technomic. Pizza Hut is the category leader, with
about 18.3% share, and Papa John's is third with 7.1% share. The
chain in its most recent quarter posted a 3% U.S. same-store sales
gain. International same-store sales were up 8.1%.
In a recent note, Janney analyst Mark Kalinowski said: "Domino's
appears to be doing an excellent job of retaining new customers who
tried the reformulated core product last year, and/or building
frequency with its existing customer base."
When asked if any critics scoffed at Domino's use of the word
"artisan" for its new pizza, Mr. Weiner was quick to point out that
the chain did not take itself too seriously, as evidenced in the
marketing. "We're trying to be honest with our customers."