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Posted on Thu, Jan 7, 2010 : 6:01 a.m.

Managing aftermath of new recipe, marketing falls to new Domino's Pizza CEO

By Nathan Bomey

Ann Arbor-based Domino’s Pizza won't face significant disruption of its business operations as a result of its upcoming leadership transition, experts said.

Investors and experts effectively yawned at the news that J. Patrick Doyle, president of Domino’s USA, would succeed CEO David Brandon, who will become the next athletic director at the University of Michigan.

Doyle, however, will have to manage the aftermath of a new pizza recipe and major marketing campaign described as critical to the company's immediate success.

Patrick Doyle 2.jpg

J. Patrick Doyle, currently president of Domino's USA, will become the CEO of Domino's Pizza in March.

Photo courtesy of Domino's

“The product has already gone through the research and development.  It’s already been rolled out to the stores, and the massive marketing campaign behind it is already on the air,” said Jeremy White, editor in chief of the Louisville, Ky.-based trade journal Pizza Today. “I don’t really see how (Brandon’s) departure would impact that in any way, shape or form.”

Doyle, who’s been working for Domino’s longer than Brandon, likely will steer the Domino’s ship in the same direction it’s been heading, analysts said.

Still, Doyle becomes CEO of Domino’s at a critical time for the company. Domino's is in the midst of what Brandon described as the "most aggressive marketing campaign" in its 50-year history.

And it’s still too early to gauge how consumers are reacting to the quality of the company’s completely redesigned pizza recipe, which features new sauce, crust and cheese.

But Robert Passikoff, president of New York-based Brand Keys, said it’s unlikely Domino’s would regret the new recipe.

“It still seems to be a smart move,” he said. “This didn’t get whipped up in some test kitchen and then pushed out there. They’ve tested this.”

Behind the scenes, Doyle was said to be a major catalyst in sparking the recipe change.

And it’s Doyle, not Brandon, who is featured in the company’s TV commercials advertising the new pizza.

A Domino’s spokesman declined to make Doyle available for comment.

But Doyle told AnnArbor.com last month that he was confident the recipe would succeed. He said the company conducted extensive consumer testing to ensure that the product would get a warm welcome from consumers.

"I'm excited, not nervous," Doyle said. "We have done an unbelievable amount of consumer research over the past 2 years."

For Doyle, ensuring the new recipe is successful is a big task and could help determine whether Domino’s emerges from the economic crisis with a better reputation on quality.

Research conducted by Brand Keys before Domino’s introduced its new pizza last month found that consumers ranked the previous version as the worst in the industry, tied with Chuck E. Cheese’s.

If the new recipe helps Domino’s overcome its quality crisis, Doyle won’t have nearly as much to worry about.

“I think he’s going to do a fantastic job,” White said. “He’s an extremely personable guy and extremely intelligent guy who really has his finger on the pulse of Domino’s. He’s been there a long time. He really knows the brand and he really won’t miss a beat.”

Domino's operates about 8,886 corporate and franchised stores, and it employs about 10,500 full-time workers. The company's stock, which closed Monday at $8.68, has risen 3.8 percent to $9.01 since the announcement of Brandon's departure.

In the third quarter of 2009, sales at Domino's stores open a year or more were relatively flat as the company's profit rose from $10.1 million in the third quarter of 2008 to $17.8 million.

For more information on Domino's Pizza, visit AnnArbor.com's restaurant guide. 

Contact AnnArbor.com’s Nathan Bomey at (734) 623-2587 or nathanbomey@annarbor.com. You can also follow him on Twitter.

Comments

Michigan Reader

Thu, Jan 7, 2010 : 7:43 p.m.

"Research found that the previous version was the worst in the industry." I've eaten Domino's many, many times in previous years, and can attest that any quality problem isn't due to the recipe. Of course, Ann Arbor is Domino's backyard, but I thought it was always delicious here. I only stopped eating theirs because after so many years, I got sick of it. There is some other factor for poor quality. I've ordered from a hotel out of town, and I couldn't put my finger on it, but it wasn't up to Ann Arbor standards. Someone I know told me when she ordered, it always came burned. But the recipe per se is/was fine. I'll bet it's still on the shelf if this new one doesn't pan out. Remember "new Coke?" They went back to the old stuff when the public reaction was too negative.

scooter dog

Thu, Jan 7, 2010 : 3:56 p.m.

I don't care how much they change their product.Once the public gets it in there head that you serve something that is to say the least like chewing on cardboard and was thrown together by some snot nosed kid with a bad as hell attitude and was delivered by another someone who could care less about your pizza and is only looking for the tip that their bad attitude is not going to get for them.I used to buy there product,but never again.I don't care if they give it away.I eat out alot 20 plus meals a week.Once I get sub par food and bad attitude service I do not go back ever period.End of problem.

Lokalisierung

Thu, Jan 7, 2010 : 12:14 p.m.

The new recipe Pizza I ordered was pretty bad. As I said in my original post I think it has the ability to be better (that isn't so hard)than the original but it was made with no care and was pretty sad.

Craig Lounsbury

Thu, Jan 7, 2010 : 9:08 a.m.

"Research conducted by Brand Keys before Dominos introduced its new pizza last month found that consumers ranked the previous version as the worst in the industry," "Behind the scenes, Doyle was said to be a major catalyst in sparking the recipe change." "...completely redesigned pizza recipe, which features new sauce, crust and cheese." "The company's stock, which closed Monday at $8.68, has risen 3.8 percent to $9.01 since the announcement of Brandon's departure." I will note that when Dominos offered its IPO in 2004 it opened at $14. I wonder if Michigan hired the wrong Dominos guy to be the next AD.