Writing · AI / Automation / Tech
Domino's has sold round pizza for 65 years. Monday, they started selling a rectangle. Domino's Found a Complaint Customers Never File.
It's called the Domino. Personal-size, Detroit-style, two slices, shaped like the company logo. $7.99 with one topping, three if you want them.
Count what they had to change to build it. The first rectangle their chef designed didn't fit any box in the system. Rather than add a piece of packaging, they resized the pizza until it fit a 13-inch box already stocked for other menu items. Bake time and temperature match everything else on the menu. Across 7,231 US stores, the only new piece of equipment is a pan.
Step one of Musk's algorithm is to question the requirement. Round was a 65-year-old habit for the pizza industry. If you have not read "The Algorithm" by Jon McNeill, Tesla's former president, you are missing out, and it is one any founder or executive should read and then actually put to work.
The shape isn't the innovation. Little Caesars took Detroit style national in 2013. Pizza Hut ran it as a limited item, more than once, and dropped it. Buddy's has been baking rectangles in Detroit since 1946. All three sold the rectangle as a crust, a new flavor on the same eight-slice pie a table still has to negotiate over. Domino's used the same shape to end the negotiation.
That is the pain. Somebody at the table loses the topping vote and eats around the mushrooms. It never shows up in a survey, because customers don't file it as a complaint. They file it as dinner. Yum Brands, which owns Pizza Hut, found 31% of custom orders now come from groups of two people. A party of two is still negotiating.
Domino's US same-store sales grew 0.1% last quarter, the weakest in over a year, and the 10-Q says why: more orders, smaller tickets. So they moved the unit of sale from the table to the person. Four people used to be one pizza.
Now it's four boxes, four sets of toppings, and a $6.99 price that only unlocks when you buy two items, which puts cheesy bread and a lava cake in front of each of the four.
What does your customer concede in order to buy from you? Price is the easy answer and usually the wrong one. Look for the thing they argue about, settle for, work around, and never bother to mention, because they have decided that is simply how your industry works. That concession could be your firm's breakthrough. Sell them the version where they don't have to make it.
A 65-year-old pizza chain found one. Your industry has one too.