Join our Waitlist for Expert Advice!

Domino's Pizza Turnaround Pays Off

By Tracy Stapp Herold

Domino's is far from the first food franchise to advertise that its recipes are "new and improved," but you won't find many others willing to admit so openly just why the recipe needed improvement in the first place. Domino's took a risk back in December by baring all in its documentary-style commercials, which revealed customer complaints about cardboard crust and ketchup-like sauce. But it also showed real Domino's employees working determinedly to create something better.

The honesty of the commercials succeeded in capturing not only customers' curiosity, but their sympathy as well. There's something quite appealing about a big company willing to admit to its mistakes and put in the effort to correct them--especially amidst the corporate scandals and big bailouts that dominate the news nowadays.

And the proof is in the pudding--or rather, the pie. Domino's reported this week that its fourth-quarter profits rose to $23.6 million--more than double last year's figure. And franchisees are enjoying better times as well, with store sales up 1.4 percent.

Of course, it remains to be seen whether Domino's upward momentum will continue. The interest generated by the unique frankness of the Pizza Turnaround campaign undoubtedly brought in a lot of new customers to try the new recipe. But will that interest wane, or will they keep coming back for more?

Only time will tell, but for its part, Domino's has already decided that honesty really is the best policy. Pizzaturnaround.com boldly displays news coverage and Twitter comments--whether good, bad or ugly.

Tracy Stapp Herold

Entrepreneur Staff

Tracy Stapp Herold is the special projects editor at Entrepreneur magazine. She works on franchise and business opportunity stories and listings, including the annual Franchise 500.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Side Hustle

At 16, She Started a Side Hustle While 'Stuck at Home.' Now It's on Track to Earn Over $3.1 Million This Year.

Evangelina Petrakis, 21, was in high school when she posted on social media for fun — then realized a business opportunity.

Health & Wellness

I'm a CEO, Founder and Father of 2 — Here Are 3 Practices That Help Me Maintain My Sanity.

This is a combination of active practices that I've put together over a decade of my intense entrepreneurial journey.

Business News

Remote Work Enthusiast Kevin O'Leary Does TV Appearance Wearing Suit Jacket, Tie and Pajama Bottoms

"Shark Tank" star Kevin O'Leary looks all business—until you see the wide view.

Business News

Are Apple Smart Glasses in the Works? Apple Is Eyeing Meta's Ran-Ban Success Story, According to a New Report.

Meta has sold more than 700,000 pairs of smart glasses, with demand even ahead of supply at one point.

Money & Finance

The 'Richest' U.S. City Probably Isn't Where You Think It Is

It's not located in New York or California.

Business News

Hybrid Workers Were Put to the Test Against Fully In-Office Employees — Here's Who Came Out On Top

Productivity barely changed whether employees were in the office or not. However, hybrid workers reported better job satisfaction than in-office workers.