Domino’s is surviving on brand image, even with recent closures

We’ve seen a lot of mass restaurant closures in recent weeks — O’Charley’s, Red Lobster, Domino’s.

Wait, Domino’s?

Yep, really. Franchisee Mile High Pizza Company in Ohio closed 13 stores. You’d think it wouldn’t have been so surprising, given the state of both the industry in general and the pizza segment specifically, but it was.

While Papa Johns and Pizza Hut have been closing units by the hundreds over the last couple years, Domino’s has been steadily increasing its store count, including 19 net new stores in Q1 and 26 in Q2.

Domino’s sales have been consistently fine (not great) as well, so when the company essentially described these closures as a blip (formally, “an isolated franchisee matter”) I was very inclined to believe them.

But then it got me wondering: What makes Domino’s stand out among the crowd of pizza giants? And how can its competitors stop the bleeding? So I once again turned to my trusty Technomic consumer data to see how pizza eaters are thinking about the big chains.

Overall, all three chains have excellent consumer ratings, with Papa Johns actually squeaking by with the best overall score. So we know right off the bat that being well-liked doesn’t automatically equate to making sales. (That tracks for me. Papa Johns is my favorite of the three, but I can’t remember the last time I ordered pizza from a place that wasn’t my local joint.)

Apparently having good food doesn’t automatically equal sales either, because Pizza Hut dominates the food-related attributes, especially visual appeal, healthy options, and LTO appeal. Domino’s catches up with higher scores on taste and value, while Papa Johns is considered the most craveable.

Where Domino’s specifically stands out is on brand image. People trust it more than the others, and is “likeable” and “innovative,” or at least more than the other two, according to Technomic data.

Where all three chains sit the closest is on matters of convenience and takeout. All three brands score relatively high for all six attributes, which is good. It’s pizza.

Domino’s lags on service and hospitality, winning only in “technology integration in ordering” (we used to more or less consider them a technology company, and they still tend to be cutting-edge when it comes to new tech, so it’s good to know that comes across to consumers).

Pizza Hut, meanwhile, absolutely blows the crowd away on unit appearance and ambiance, likely on its dine-in format. It wins all nine sub-categories by at least two percentage points each, including cleanliness (both interior and kitchen), music selection, and overall ambiance.

So, what do we learn from all this? Nothing really matters? Nah, of course not. Domino’s wins on a strong overall brand image, and also scores high on affordability, loyalty, digital ordering, and intent to return. Leaning into its image as a tech-forward brand is helping keep it alive.

Papa Johns has big opportunities in brand image and innovation, which may just be holdover from the Schnatter days. But the delivery scores are good enough to carry them through these rougher years.

Pizza Hut is the brand that’s hardest to assess for me, given its recent sale and that we don’t really know what LongRange’s plans are for it. But I think leaning into dine-in can only drive big improvements.

I guess we’ll see if either of those big guys can catch up to Domino’s in the near future — or at the very least, stop the bleeding. I sure hope so.

Leigh Anne Zinsmeister is a managing editor for Informa’s Foodservice Media, encompassing Restaurant Business, Nation's Restaurant News, and Foodservice Director.