AP Business Case Study · Unit 4, Task 3

Domino’s: Admitting the Pizza Was the Problem

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Unit 4 · Strategy and Decision Making

A real-company case study for Unit 4, Task 3 of AP Business with Personal Finance, written in the same format as the course's business cases. Read the case, answer each question on your own, then open the sample answers to check your thinking. Facts are current as of October 2026, and every source is listed at the bottom.

The Case

Unit & taskUnit 4, Task 3: Strategy and Decision Making
Topic4.3
Key peopleDavid Brandon (Chairman and CEO (CEO 1999–2010); later executive chairman); Patrick Doyle (President of Domino’s USA in 2009; president and CEO from March 2010); Russell Weiner (Chief marketing officer who led the Pizza Turnaround campaign; later CEO through September 2026); Joe Jordan (CEO since October 1, 2026)
Case years2008–2026 · Decision case
Key questionFacing years of weak U.S. sales, should Domino’s keep adjusting prices and menu items or remake its core pizza and publicly admit its flaws — and how did that decision shape its later strategy?
Business Canvas componentsProduct, Organization
Snapshot
  • Business: Pizza delivery and carryout
  • Industry: Quick-service restaurants (pizza)
  • Founded: 1960
  • Headquarters: Ann Arbor, Michigan
  • Key people: Joe Jordan, CEO (since Oct. 1, 2026); Russell Weiner, executive chairman designate
  • Ownership/Status: Publicly traded (Nasdaq: DPZ); about 99% of stores owned by independent franchisees

A Delivery Giant Losing Ground

Domino’s has been serving customers since 1960, and by the late 2000s it was one of the largest pizza companies in the world, with 8,773 stores at the end of 2008. In early 2010, Time described it as the world’s No. 2 pizza chain behind Pizza Hut. A company spokesman told the magazine that delivery convenience had been the brand’s core strength for 50 years and that competition in the pizza business was intense.

In its home market, though, business was slipping. In 2008, U.S. same store sales — sales at existing stores compared with the year before — fell 4.9%. In his letter to shareholders, Chairman and CEO David Brandon called 2008 a difficult year. He said the U.S. business faced significant challenges and that traffic at dinnertime had been eroding for a few years. Domino’s had already tried several fixes. It said its pricing strategy needed improvement and introduced a “barbell” approach aimed at both value-seeking and premium customers, and it added new menu items such as Oven Baked Sandwiches. In 2009, U.S. same store sales rose just 0.5%.

Remaking the Pizza in Public

Domino’s leaders eventually focused on the product at the center of the menu. After nearly two years of research and development, the company launched what it called its Inspired New Pizza at the end of 2009. It was a complete change to the core pizza, starting with the crust; the advertising promised a new sauce, a new crust, and new cheese. In his final annual letter as CEO, Brandon wrote that Domino’s had admitted disappointing some consumers with its pizza quality in the past and had taken the issue seriously.

What made the launch unusual was how openly Domino’s talked about its old pizza. Instead of quietly swapping recipes, it made customers’ criticism part of the message. A video tied to the launch showed company executives responding to blunt complaints, including the comment that the pizza “tastes like cardboard.” The campaign ran under the slogan “Oh Yes We Did,” and the company created a website, pizzaturnaround.com, to explain the changes and collect feedback from customers. Domino’s also promised to make things right or refund customers’ money if they were not satisfied. A year later, the company’s annual report looked back on the campaign and confirmed that, yes, Domino’s had admitted on television that people saw its old pizza as cardboard.

The launch came during a change in leadership. Brandon, who had been CEO since 1999, stepped down as CEO in March 2010 and remained chairman. Patrick Doyle, who had been president of Domino’s USA, became president and CEO. Russell Weiner, the chief marketing officer who had joined Domino’s in 2008, led what the company now calls its Pizza Turnaround campaign.

Measuring the Results

The numbers moved quickly. In 2010, U.S. same store sales jumped 9.9%, and global retail sales — sales at all company-owned and franchised stores worldwide — rose to $6.27 billion from $5.63 billion in 2009. In his first annual letter as CEO, Doyle wrote that the new pizza attracted first-time customers while holding on to regulars, and that some people who had not eaten Domino’s in 15 years or more gave it another try. In 2011, U.S. same store sales rose another 3.5%, and Doyle credited the pizza’s reformulation with building consumer trust in the brand.

Technology helped turn that interest into orders. Nearly 25% of U.S. store sales came from online orders in 2010, and almost one-third did in 2011. Customers could use the online Pizza Tracker to follow their pizza’s progress, and in 2010 the company invited customers to submit photos of their food through a contest called Show Us Your Pizza.

From a Recipe Fix to a Long-Term Strategy

The turnaround became a foundation for the company’s strategy in the years that followed. Domino’s kept investing in digital ordering; in 2024, more than 85% of its U.S. retail sales came through digital channels. It added stores in markets where it already operated — an approach it calls “fortressing” — to shrink delivery areas and get closer to carryout customers, while noting in its filings that new stores can take sales from nearby existing ones. It also reached a global agreement with Uber that lets customers order Domino’s through Uber’s marketplace. At the end of 2024, about 99% of Domino’s stores were owned and run by independent franchisees. The company describes its current plan, called Hungry for MORE, as a strategy to generate more sales, more stores, and more profits.

In October 2025, Domino’s launched its first brand refresh in 13 years, with brighter colors and new packaging but the same pizza. Kate Trumbull, the company’s global chief marketing officer, explained the thinking: “Over the past decade, we became known as a technology company that happens to sell pizza.” She said the Hungry for MORE strategy was bringing the focus back to making and delivering delicious products.

Where Things Stand

In 2025, Domino’s global retail sales reached about $20.1 billion, U.S. same store sales grew 3.0%, and the company ended the year with 22,142 stores. CEO Russell Weiner said Domino’s had gained another point of U.S. market share. In the third quarter of 2026, which ended September 6, U.S. same store sales rose just 0.3%, while the store count reached 22,706. Leadership is changing again. Joe Jordan, who had been chief operating officer and president of Domino’s U.S., became CEO on October 1, 2026. Weiner, who has worked at Domino’s for 18 years, became executive chairman designate and is set to become executive chairman at the company’s annual shareholder meeting in April 2027, when Brandon plans to retire from the board.

Exhibit 1: Domino’s performance before and after the new pizza
YearU.S. same store sales growthGlobal retail salesStores worldwide (end of year)
2008−4.9%$5.51 billion8,773
2009+0.5%$5.63 billion8,999
2010+9.9%$6.27 billion9,351
2011+3.5%$6.96 billion9,742
2025+3.0%$20.13 billion22,142

Global retail sales include sales at company-owned and franchised stores. Fiscal 2009 had 53 weeks. Sources: Domino’s Pizza, Inc. annual reports for 2008, 2009, 2010, and 2011; Domino’s fourth quarter and fiscal 2025 results release (Feb. 23, 2026).

Reading Questions

These are the same for every case. They check that you caught the basics before you analyze.

1. Which business does this case feature, and what product or service does it provide?
The case features Domino’s, a pizza company that has served customers since 1960 and is headquartered in Ann Arbor, Michigan. It makes pizza and other menu items for delivery and carryout through more than 22,000 stores worldwide, about 99% of them owned by independent franchisees, and more than 85% of its U.S. retail sales now come through digital channels such as its website and app.
2. Who are the key people named in the case, and what roles do they play? Which other stakeholders — individuals or groups — have an interest in the business?
David Brandon was chairman and CEO until March 2010 and wrote that Domino’s had disappointed some consumers with its pizza quality; he later became executive chairman. Patrick Doyle was president of Domino’s USA and became CEO in March 2010, leading the company through the turnaround. Russell Weiner was the chief marketing officer who led the Pizza Turnaround campaign and later became CEO. Kate Trumbull is the global chief marketing officer who explained the 2025 brand refresh, and Joe Jordan became CEO on October 1, 2026. Other stakeholders include customers (including the critics whose complaints appeared in the campaign), franchisees who own about 99% of stores, shareholders, store employees, delivery partner Uber, and competitors such as Pizza Hut.
3. Identify an opportunity and/or a challenge the business faces in this case.
A challenge was falling U.S. sales — same store sales dropped 4.9% in 2008 and rose only 0.5% in 2009 — because dinner traffic had been eroding and some customers were disappointed with the pizza’s quality. Admitting that problem in public was also risky for the brand. An opportunity was winning back former customers with a better pizza and honest advertising, and later using digital ordering, which grew to more than 85% of U.S. retail sales in 2024. A current challenge is slower U.S. growth: same store sales rose just 0.3% in the third quarter of 2026.

Practice Questions

These apply the Unit 4 concepts from Task 3 to the case, in the style of AP free-response prompts.

1. Explain how and why Domino’s developed a new strategy at the end of 2009. In your answer, identify the company’s goal, its strategy, and two tactics it used to carry out that strategy.Topic 4.3 · LO 4.3.A
Domino’s goal was to reverse weak U.S. sales and dinner traffic that had been eroding for a few years (U.S. same store sales fell 4.9% in 2008 and grew only 0.5% in 2009). Earlier moves such as barbell pricing and new sandwiches had not fixed the core issue, so leaders developed a long-term strategy to rebuild customer trust by improving the main product and being honest about its past problems. Tactics are specific actions that carry out a strategy: Domino’s changed its sauce, crust, and cheese after nearly two years of research and development; ran the “Oh Yes We Did” campaign showing criticism of its old pizza; created pizzaturnaround.com to collect feedback; and promised to make things right or refund customers’ money. A strategy like this helps a business focus its resources on what most affects its goal — here, whether customers wanted to buy the pizza.
2. Apply the first three steps of the PACED decision-making model (Problem, Alternatives, Criteria) to the situation Domino’s faced in 2009. State the problem, describe two alternatives, and identify two criteria for comparing them, naming a KPI for any criterion that can be measured.Topic 4.3 · LO 4.3.B
Problem: Domino’s U.S. sales were weak (same store sales fell 4.9% in 2008), dinner traffic had been eroding for a few years, and some consumers were disappointed with the quality of its pizza. Alternative 1: keep the existing pizza and continue adjusting prices and menu items, as Domino’s did in 2008 with barbell pricing and Oven Baked Sandwiches. Alternative 2: replace the core pizza recipe and publicly admit that the old pizza had disappointed customers. Criterion 1: impact on sales, which can be measured with a KPI such as U.S. same store sales growth. Criterion 2: risk to the brand’s reputation; this is harder to quantify, though customer satisfaction ratings could help. Other useful criteria include cost and time (the new pizza took nearly two years of development) and the effect on franchisees, who own most stores.
3. Using Exhibit 1, calculate the percent change in Domino’s global retail sales from 2009 to 2010. Then explain how the results in the exhibit support or challenge the decision Domino’s made, using a cause-and-effect chain.Topic 4.3 · LO 4.3.B
Percent change = (new − old) ÷ old = ($6.27 billion − $5.63 billion) ÷ $5.63 billion = $0.64 billion ÷ $5.63 billion ≈ 0.114, or about 11.4%. The results support the decision: the new pizza and honest advertising gave customers who had stopped ordering a reason to try Domino’s again, which increased orders and traffic, which pushed U.S. same store sales from +0.5% in 2009 to +9.9% in 2010 and another +3.5% in 2011. However, global retail sales include stores outside the United States, and the worldwide store count also grew (from 8,999 to 9,351), so not all of the 11.4% increase can be credited to the recipe change alone. U.S. same store sales, which compare the same stores from one year to the next, are stronger evidence that the decision worked.

Discussion Questions

Talk these through with a partner or your class. There's more than one good answer, so back yours up with evidence from the case.

  1. Admitting that your main product disappointed customers is risky. What could have gone wrong for Domino’s? Why do you think its leaders accepted that risk?
  2. Before changing its core pizza, Domino’s tried new pricing and new menu items. Why might a business try smaller fixes first? How can leaders tell when a bigger change is needed?
  3. Some criteria in a decision are easy to measure (sales) and some are hard (trust, reputation). Which criteria do you think mattered most in Domino’s decision, and how could the company measure them?
  4. In 2025, Domino’s chief marketing officer said the company had become known as a technology company that happens to sell pizza, and that it was refocusing on delicious products. How does a business know when it is time to adjust a long-term strategy?
  5. Which of the following do you think contributed most to Domino’s recovery after 2009? Defend your choice with evidence from the case. (a) The new recipe (b) The honest advertising (c) Online ordering and the Pizza Tracker (d) The change in leadership

Application Activity

Think of a product, restaurant, app, or store you used to like but stopped buying from. Use PACED to recommend how the business could win you back: define the problem, list two alternatives, choose two criteria (name a KPI for at least one), evaluate each alternative against the criteria, and make a decision.

Key Takeaways

  • Good strategy starts with a clear definition of the problem. Domino’s tried price and menu changes in 2008, but U.S. sales kept struggling until it addressed what customers thought of the pizza itself.
  • A deliberative process like PACED helps leaders compare alternatives using criteria. Domino’s had to weigh measurable criteria, such as sales and development cost, against harder-to-measure ones, such as trust and brand reputation, before choosing a bold and transparent option that carried real risk.
  • Strategies are carried out through tactics and checked with KPIs. The new sauce, crust, and cheese, the “Oh Yes We Did” ads, and the feedback website were tactics, and same store sales and global retail sales showed whether the strategy worked; later strategies such as digital ordering, fortressing, and Hungry for MORE built on the same goal of growing sales.

Use it in your Business Canvas Project

For your Canvas PACED deliverable, define your problem with evidence the way Domino’s could point to falling same store sales, consider at least one alternative that changes your core product rather than only its price or promotion, and name the KPI you would use to judge whether your decision worked.

For Teachers

Opening activity: Ask students: Has a business you like ever admitted it made a mistake? Did that make you trust it more or less? After a short discussion, introduce the PACED model — Problem, Alternatives, Criteria, Evaluate, Decide — and tell students they will use it to analyze a real decision Domino’s made in 2009.

Tip: “Print case” prints the case and all questions with the sample answers hidden, so it works as a student handout.

Sources

  1. Domino’s Pizza, Inc. 2008 Annual Report, Domino’s Pizza, Inc., 2009
  2. Domino’s Pizza, Inc. 2009 Annual Report, Domino’s Pizza, Inc., 2010
  3. Domino’s Pizza, Inc. 2010 Annual Report, Domino’s Pizza, Inc., 2011
  4. Domino’s Pizza, Inc. 2011 Annual Report, Domino’s Pizza, Inc., 2012
  5. Domino’s Mea Culpa and America’s Pizza Passions, Time (Josh Ozersky), 2010-01-29
  6. Domino’s Pizza, Inc. Form 10-K for fiscal year ended December 29, 2024, U.S. Securities and Exchange Commission (EDGAR), 2025
  7. Domino’s® New Craveable Brand Refresh Makes You Say “Mmm”, Domino’s Pizza, Inc. (press release), 2025-10-08
  8. Domino’s Pizza® Announces Fourth Quarter and Fiscal 2025 Financial Results, Domino’s Pizza, Inc. (press release), 2026-02-23
  9. Domino’s Announces CEO Succession Plan, Domino’s Pizza, Inc. (press release), 2026-06-22
  10. Domino’s Pizza® Announces Third Quarter 2026 Financial Results, Domino’s Pizza, Inc. (press release), 2026-10-13

This case was written for educational use from the public sources listed above. Domino’s did not review it and is not affiliated with this site; company names are trademarks of their owners. This resource is independent and not affiliated with or endorsed by College Board.