Monaghan renamed the store Domino's Pizza in 1965, and opened the first franchise in 1967. James later traded his share of the business for a Volkswagen Beetle. The company was founded in 1960 when Monaghan and his brother James borrowed $900 to buy DomiNick's, a pizza store in Ypsilanti. He felt very comfortable that Bain would come to know the business very well and leave management to the experts." "He wanted a high-quality financial investor who was interested in owning the company, not operating it. "Tom was looking to retire, but he was looking for something very specific," McIntyre said. Monaghan will step down as chief executive but will remain on the board of directors, said Domino's spokesman Tim McIntyre. Kyle Potvin, a spokeswoman for Bain Capital, said Bain will run the company, and Monaghan will not be involved in day-to-day operations. One of Bain's managing directors is Mitt Romney, the son of former Michigan governor George Romney. Monaghan, who owned more than 90 percent of Domino's, is selling nearly his entire stake to Bain Capital Inc., which manages more than $4 billion. It has about 6,100 stores, 4,400 of them in the United States. "At the age of 61, reflecting on my life and the goals I have yet to fulfill, I have decided to retire from active involvement in Domino's Pizza and devote more time to my charitable endeavors," Monaghan said in a statement.ĭomino's is second only to Pizza Hut in the United States. The purchase price for the nation's second-biggest pizza chain was not disclosed. But Saleh said consumers are loyal to third-party apps and unlikely to switch.Domino's Pizza founder Tom Monaghan said today that he is retiring and selling practically the entire company to a Massachusetts investment firm so that he can devote his time to charity. Saleh said he also expects Domino’s will still offer better deals, like its $6.99 Mix and Match menu, on its own website to encourage customers to order directly. He also said the agreement leaves the door open to other partners, including DoorDash. Peter Saleh, a managing director and restaurant analyst with the investment bank BTIG, said Wednesday that the deal was “the best possible path” for Domino’s, which will still control the delivery experience and access data. The company wouldn’t say how many drivers it has in the 28 markets nearly all Domino’s stores are independently operated by franchisees. last year, while international same-store sales were flat.ĭomino’s said Wednesday that its labor challenges have largely abated over the last year, and it’s confident it will be able to meet increased demand from Uber Eats orders. The company’s same-store sales - a key metric of a restaurant’s health - fell 1% in the U.S. In 2019, then-CEO Ritch Allison predicted that third-party delivery would eventually collapse because companies were charging too little for the service.ĭomino’s has been struggling with higher food costs, labor shortages and increasing competition. because it wanted to control the delivery experience. partner until at least 2024.ĭomino’s shares jumped 10% in morning trading.ĭomino’s had been reluctant to partner with third-party apps in the U.S. markets starting this fall and is expected to be available nationwide by the end of 2023, Domino’s said. The partnership will be piloted in four U.S. Ann Arbor, Michigan-based Domino’s wouldn’t say what percentage Uber Eats will take from each order. Under the agreement, uniformed Domino’s drivers will still make the deliveries that customers order via Uber Eats, and Uber Eats will share data with Domino’s on delivery efficiency and incremental sales. While franchisees in a handful of international markets like the Netherlands have been working with third-party apps for years, Domino’s has long said that partnering with delivery companies didn’t make economic sense in its 6,600 U.S. In a major reversal, Domino’s Pizza said Wednesday it’s partnering with Uber Eats to make deliveries in the U.S.
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