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HOW DOMINO'S
DOES IT
PMQ takes a
look at Domino's Marketing
Tactics & Success
Twenty Store
Texas Franchise Mike Cunningham
Would you have the
courage to open the first Domino's Pizza stores in the home town of
Pizza Hut? 
That's just what
Mike Cunningham did in 1986. He opened four of them all at once in
Wichita Kansas
during Pizza Huts
height of popularity.
If you met Mike
Cunningham in person you would never classify him as a big risk
taker. He's not flamboyant, eccentric, or someone who thinks he knows
it all. In fact, he is the opposite. He is very typical of the kind
of franchisees that were and still are the building blocks of the
Domino's Pizza system.
It wasn't his
courage as much as his faith in the Domino's Pizza system that
allowed him to take what would appear to be an extremely risky
gamble. As Mike says "a lot of very bright people have come and
gone or come and stayed within Domino's that have left the system
stronger as a result."
Now after 20 years
as a franchise, he owns one store for every year of service. Twenty
Domino's Pizza stores in the Houston Texas area, including College
Station, home of Texas A&M. Mike gives the credit for his success
to others; his wife, his mentor Richard Mueller, The Domino's Pizza
System and his management.
"There is no
way I could have done this without Cindy (his wife of 21 years)".
She was there from the beginning working beside me and giving it her
all. Only after five years of helping to get our company firmly on
track did she retreat to the home front, and she has been a much
valued fountain of support ever since."
"Every one
getting started in business needs a mentor and mine was Richard
Mueller." (Domino's Legend and Largest Franchisee). Richard
Mueller was Mike's first Domino's employer back in 1973 and had first
suggested franchising to him. Over the years Mueller has provided
invaluable ideas and assistance to me and many other franchisees."
"My strong
point has always been managing people and managing the rush. The
Domino's system provided me the support in the areas I wasn't really
very good at so that I was free to do what I did best." The
corporation and network of franchisees gave me the support I needed
in the other areas. I'm not a lawyer, an accountant, or a marketing
guru. I felt like that's what I was paying Domino's my royalties for.
(He smiles) "I got my money's worth.
He gives his
fourth heap of credit to his management people. And he means it too.
His key management people have long years of experience and loyalty.
Supervisor Donna Holt has been with him for 18 years, Tom Moyes for
16, Dean Mulkey 14 and Stephen Williams would have been there longer
than 8 years if it weren't for the fact that he's only 28 years old.
He has given them
responsibility and the freedom to control their own stores and it has
worked out for the best.
Like so many other
Domino's franchisees, Mike was in College working for Domino's part
time and got sucked into the opportunity whirlpool, never to finish
what he started.
Mike was attending
the Pharmacy school at Ohio State University in 1973 when he took a
job as ad driver. That changed everything. After managing two stores
and finding that he had a knack for management, he supervised other
stores, and eventually opened his first store at Texas A&M in
College Station in May of 1978. Married only a year to his wife
Cindy, it was very stressful. "It wasn't a great time to open a
campus store. In fact it was scary. After we had put everything we
had into the store and had borrowed every dollar we could borrow, I
thought I had made a mistake. But when the students came back in
September I was fortunately still in business and they took a liking
to Domino's. That was a big relief."
Over the years
Mike has owned as many as 26 stores. He has sold some and bought
others and is very happy to have his relatively small piece of the
Domino's Pie.
Sales are up!
What's been working?
Mike believes that
two new Domino's initiatives are having a positive impact on sales:
Domino's new re-imaging program and the heated hot bag. "We are
getting a good bump in sales with each store that we are re-imaging.
And the heated hot bag has been a success. Initially I think the
national marketing of our heated hot bags was responsible for a sales
surge but I think this trend will continue. In the long run, sales
will continue to improve because the heating system makes our pizza's
taste better to the customer simply because they are hotter, and
nobody gets that occasional cold pizza anymore. One thing about the
Domino's hot bag system is that the customer can see the electric
chord hanging from the bag. That really gets their attention."
Even with all of
the national support from the head office, the pizza war is
ultimately fought on individual neighborhood battlefields. Mike knows
this and does nt rely solely on Domino's national marketing. He still
has an aggressive local store marketing strategy.
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