Domino's Pizza History

If you're in the habit of ordering takeout pizza in the United States (as well as many places abroad), chances are, you're more than familiar with the super franchise known as Domino's Pizza. This fast food giant has been a defining face of the pizza chain industry for nearly four decades and, in addition to its record-breaking size and profits, boasts a fascinating history.

The Beginning

The Domino's franchise started out as just one tiny store. It was purchased and started by brothers Tom and James Monaghan in 1960. At that time, the restaurant was known, not as "Domino's," but as "Dominick's Pizza" and was located in Ypsilanti, MI. The two brothers only worked as a team until 1961, when James traded his half of the business to his brother for the price of a Volkswagen Beetle. In 1965, the name "Dominick's" was traded for "Domino's."

Growth

The second Domino's pizza store was opened in Ypsilanti in 1967, officially starting the Domino's franchise. Since that time, the chain has experienced record-breaking growth: By 1978, 200 Domino's restaurants had been opened, and by 1983, the chain boasted 1,000 openings as well as restaurants in Australia and Canada. By 1985, Domino's was the fastest-growing chain in the United States, with additional locations in England and Japan.

Obstacles

As hugely successful as the Domino's pizza franchise has been, the chain's history has been riddled with obstacles and troubles. In 1968, the company's headquarters were destroyed in a fire. In 1975, Domino's entered, and eventually won, a 5-year legal battle over trademark infringement claims posed by Domino Sugar. In 1989, a man named Kenneth Noid created a hostage situation at an Atlanta restaurant, angrily believing that the company's "Avoid the Noid" ad campaign (featuring a pizza-stealing, stop-motion animation character known as "The Noid") to be a personal insult. Luckily, Noid surrendered to police without harming his hostages, though he did force them to make pizza for him.

Delivery

From the early days of the company, Domino's has had a delivery-focused business model. This approach helped the business gain a serious leg up during the late 1960s when the store's East Lansing location gained massive popularity with Michigan State University students wanting convenient food options without having to have their own cars. The delivery-heavy model prompted the restaurant's famous "30 minutes or it's free" guarantee. However, this guarantee was rescinded in 1993 as a result of complaints about reckless driving and accidents caused by delivery drivers in a rush to meet the requirements.

Today

Nowadays, Domino's pizza continues to grow, with over 8,000 store locations worldwide. The company has continued to develop its business model by featuring many non-pizza menu items and incorporating new customer service options such as online order. Domino's has also been listed in Entrepreneur magazine's list of the top 10 best franchise opportunities.