Domino’s Pizza Chain Executive Discusses Product Innovation Strategy at Conference
ANN ARBOR, MICH. — Sandeep Reddy, executive vice president and chief financial officer of Domino’s Pizza, recently shared insights into the company’s product innovation strategy during the Oppenheimer Consumer Growth and E-Commerce Conference held on June 10.
Reddy emphasized the importance of new and fresh menu offerings to keep consumers excited. He highlighted some of Domino’s recent product innovations, including the popular pepperoni stuffed cheesy bread introduced in 2023 and the New York style pizza launched earlier this year. Reddy explained that the pepperoni stuffed cheesy bread was a revamped version of an existing item, while the New York style pizza was developed in response to customer demand for a foldable crust.
In discussing Domino’s evolving strategy for new product innovation, Reddy mentioned the company’s willingness to remove items from the menu to streamline operations and maximize franchisee profitability.
“We’ve done that in the past, and we may do that in the future as well,” Reddy said. “Just to make sure they deliver newness and just proliferate. And we don’t have a lot of waste building into the menu as we go through this to maximize franchisee profitability again.”
Reddy also touched on the impact of marketing and partnerships with companies like Uber Eats on Domino’s goal of achieving a 3% mix of sales by the end of the year.
“We feel that we’re on track. I mean that all the plans that we had in the beginning of the launch period, we are actually seeing it materialize,” Reddy said. “And I think as we go along, we will actually evaluate how things are going and what tweaks to make, if any. But what I would say is the 3% was more a mix input that we provided to investors to help everybody to model and think about it, but really what’s most fundamental to our story is the algorithm.”
Reddy also discussed how retail sales growth and operating income growth factor into the company’s 3% mix goal.
“We may focus on 7% retail sales growth at 8% operating income growth and how the 3% mix plays into that is good but it’s less relevant than they are going to mature at 10% retail sales growth, 8% operating income growth and we’ll continue to toggle that,” Reddy said.
Overall, Reddy’s presentation at the conference shed light on Domino’s commitment to product innovation and strategic growth in the competitive pizza industry.