Dominos Pizza Success Story
Domino’s Pizza Inc. The chain is an American pizza restaurant, headquartered in Ann Arbor, Michigan, the U.S. Is in It is the second-largest restaurant chain in the world after McDonald’s.
Its founder is ‘Tom’ Monaghan, who started it in the 1960s by purchasing a small pizza store for $ 900. Facing many difficulties, with his hard work, will and foresight, he has brought Domino’s to this position today.
There was a time when ‘Tom’ Monaghan had reached the brink of bankruptcy, but not only did he come out of that disaster with his patience, restraint and honesty about his work, but also with the visionary thinking of 30-minute guaranteed pizza. Reached a peak.
Let us know the success story of Tom Monaghan and Domino’s –
Birth and early life of Thomas Stephen
Thomas Stephen ‘Tom’ Monaghan Thomas Stephen ‘Tom’ Monaghan was born on 25 March 1937 in the city of Ann Arbor, Michigan, USA. He was the first child of Francis and Ana Monaghan. He has a younger brother, James Monaghan.
Tom’s father was a truck driver. With limited income, his family was making a living that his father passed away on Christmas Eve. Tom was just 4 years old at the time. Due to the financial crisis on the family, his mother left him and his brother in a Michigan orphanage “St. Joseph’s Home” and went to a nursing course.
Monaghan lived for six years in the “St. Joseph’s Home” run by Fellosian Sisters of Livonia. He was very close to Sister Mary Bernarda and considered him his mentor and mentor. In his company, he aroused faith in Catholicism and love for the Church.
Deteriorating relationship with mother
Monaghan was in the sixth grade when his mother brought him and his younger brother back to her. She completed nursing and started working as a nurse in a hospital in Transverse City.
Monaghan grew and sold vegetables for the purpose of financial support of the family. He also started fishing and selling Transverse City Record-Eagle magazine in front of Milliken department stores for additional income.
Their relationship with the mother was never good and there were always fights between the two. Eventually, his mother sent him back to the orphanage.
Admitted to St. Joseph’s Seminary to become Priest and expelled from there
While in the orphanage, he continued his studies at the St. Francis School in Transverse City. But his attachment was more towards religion and church. Because of this, he started thinking about becoming a Priest.
On expressing this wish to Priest of the orphanage, he enrolled him in St. Joseph’s Seminary in Grand Rapids, Michigan.
But he could not shield himself from the rigorous discipline of the seminary and after some time he was expelled from the seminary after being found guilty of the inferiority of discipline. With this, his dream of becoming a priest came to an end.
Life after being removed from seminary
After being expelled from the seminary, his mother brought him back to himself, but he could not stay with his mother for long due to the lack of improvement in relations.
His mother put him in a juvenile detention centre. From where one of his uncles and aunts took him out and got him admitted to St. Thomas School in Ann Arbor. Monaghan was weak from the beginning in studies. In this school, he came in the last place in the class of 4 students.
After completing his schooling, he joined the Architecture Trade School of ‘Ferris State College’, Big Rapids, Michigan. He wanted a transfer to Michigan University, but not enough money was a hindrance.
After working for three years in the Navy, he returned by saving $ 2000 for his studies. Which he lost under the pretext of ‘become quicker rich’ scheme of an oil company. After doing small work again, he got money and enrolled in the university. But he was able to spend only three weeks there.
Pizza Business Starts
In the 1980s, Monaghan’s younger brother James found out that a man named Domonic Dewatri of Ypsilanti, Michigan wanted to sell his pizza store. The brothers bought the pizza store for $ 900 and started a pizza business.
Two unemployed factory workers were hired for pizza delivery. James was working in a post office at that time. Due to the job, it became difficult for him to give full time to the business. Therefore, after 6 months, James sold half his business to Monaghan and returned to a post office job.
Monaghan continued the business. Gradually, he started getting pleasure in that work and he made up his mind to do that work for a lifetime.
Establishment of Domino’s
He added Jim Gilmour to the business as a new partner. He got early success soon. Within a year, he opened his second pizza store in Ypsilanti and a year later opened the third store ‘Pizza King’ at the University of Michigan.
Most of the work was done by Monaghan himself. So he freed Jim Gilmour from participation by giving him a pizza store and took full ownership of the business.
He named his wholly-owned pizza company Domino’s and got the company logo also made. The logo featured three white dots that represented Domino’s three stores at the time. This logo of the company remained permanent.
Domino’s Home Delivery begins
Monaghan wanted to make the best and tastiest pizza available to the people. Quality was his first priority, to maintain that he focused entirely on pizza and removed all other items from his menu.
At that time, the lifestyle of American society was undergoing a change. Monaghan immediately realized that a home access service of pizza would be beneficial for families in which both spouses work and who lack time to go out and eat.
He designed an insulated pizza box in which not only could the pizza stay hot for long, but he could also bear the weight of several pizza boxes and started the home delivery of the pizza. His home delivery scheme worked and his pizza business started running.
Bankruptcy and Bank Possession of Domino’s
In April 1979, Monaghan started the franchise of Domino’s and by 1979 opened 12 pizza stores in various locations. At the pace of one pizza store per week, they were opening pizza shops. Whom to handle started to be outside their bus. At the same time, his main pizza store in Ypsilanti caught fire. After this, Tom Monaghan was on the verge of bankruptcy due to losses.
He had sunk in debt of 1.5 million dollars and had a case of 150 creditors. To recover its debt, the bank took over Domino’s and replaced Monaghan as the ‘original franchisor’. Now the royalty amount of the entire franchise started going to the bank.
Receive job and re-ownership in your own established company domino’s
The bank wanted to sell to Domino’s Pizza Company. But no buyer was willing to buy it. In the absence of a good manager, it was difficult for the bank to run Domino’s.
In this situation, Tom Monaghan proposed to hire himself in front of the bank. After accepting this, the bank hired him at a salary of $ 200 a week. Monaghan started working in a company started by himself. But their goal was to get the company back, for which they started working day and night.
In 1971, the bankers agreed that domino’s are set to sink. He returned all the shares of domino’s to Monaghan in exchange for a store. In this way, Monaghan regained his company.
Domino’s Pizza Reestablish company
The company’s condition was poor. Instead of pleading for bankruptcy, Monaghan decided to set up his company again. He kept five stores with him and sold the rest to his rival Dino’s of Dratite. Making Dino’s largest pizza chain in those areas.
Monaghan’s re-launch with five stores. Gradually, he took down the bank’s loan and after handling something, started expanding the company. This time he kept the pace of expansion slow by not repeating the earlier mistake and only after a full survey, he expanded the pizza chain to the appropriate location.
Domino’s Guaranteed Pizza Scheme in 30 minutes
To strengthen its position in the pizza business, Monaghan focused more on home delivery facilities and enforced a new scheme in 1973 – Guaranteed Pizza in 30 minutes.
In this scheme, a pizza was given for free in 30 minutes if the pizza was not delivered. Keeping in view the success of this scheme, the delivery man was encouraged by providing a bonus. The scheme worked and domino’s regained control of its customers. In this way, domino’s collected their coin in the market on the basis of pizza guarantee scheme in 30 minutes.
Till 1943 he had 4 stores in 13 states. In 1949, this number increased to 200 stores. In 1971, this number reached 592 stores by 1942 and 1962.
It became the world’s largest pizza chain company after Pizza Hut ‘Pizza Hut’, making a profit of 50% per annum.
Owned by Baseball Team Detroit Tiger
In 1973, Monaghan had become so rich that he fulfilled his childhood dream and bought his favourite baseball team Detroit Tiger ‘Dritite Tiger’ for $ 53 million. His team captured the World Series in 1979.
In 1979, he handed over the presidency of Domino’s to former Vice President P. David Block and himself the company’s CE. O. Remained as it is. In 1972, he also sold his baseball team to one of his rivals, Elitch, and spent most of his time in church-related activities.
In this way, a less educated person, due to his hard work, will power and vision, succeeded in making a small pizza store the second-largest pizza chain in the world. Today the company has 7100 Frenchies and operates its stores in 6 countries of the world. Domino’s had a net worth of $ 42.6 Million in 2016.
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