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Business Plan Of Dominos Pizza

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Discuss about the Business Plan of Domino’s Pizza.




Planning is supposed to be of great importance as it helps in enhancing the business procedure of the concerned organization. The purpose of the research paper is to evaluate the business plan for Domino’s Pizza which is one of the fastest growing chains throughout the Australian market segments. It is the largest Pizza Chain throughout the concerned market segments of Australia. It is important to analyze the external as well as the internal market segments before the formation and execution of the business plan (Barringer, 2012). The company has the largest franchise throughout the various countries across the world. The firm was founded in the year 1983 in Queensland in Australia. Developments of the effective strategies are considered to be very important for the success of the business plan for any of the firm concerned. Financial plan and the critical risks need to be identified as these two generates enormous impact on the execution of the business practices of the firm. 


Market Analysis

Analysis of the market segments is vital as it points out the needs and the requirements of the customers from the particular firm.  There has been a significant increase in the fast food consumer throughout the different market segments of Australia. Therefore, the market segment is supposed to be suitable for the fast food restaurants chains as it can bring greater profitability to the firm (Kwok and Yu, 2013). There comes the crucial need to identify the people on the basis of their age, taste, demographics and other factors as it will help in the development of the effective business plan for the firm.   People are now spending 74% of the total food consumption on consuming the fast foods. Moreover, the people can be further classified on the basis of income and gender (Chen, 2013).   The craze of fast food has been seen especially in the youth of ages between 14 to 32 years of age.  As per a public survey, 90%v of the people has been found to be regular users of Fast foods.


Market Segmentation

Segmentation is of great importance as it helps in dividing the entire large market segments into smaller units. There are different market segments which need to be selected in order to evaluate the selling of the products. Firstly, the company targets Melbourne marketplace and should divide the market into segments as to assist the customers with satisfactory services (Hair, 2015).  The secondary market segment is the Marketplace around Sydney as it accounts for a large number of the people.  This destination is supposed to attract a large number of the tourists as well as the college students who can provide the desired elevation in the business processes of the firm. 

The above chart critically reveals the percentage of people who consumes fast food on a regular basis. Moreover, it has been a fashion to consume the fast foods and therefore, it provides the preferred opportunity for   Domino’s Pizza to increase the selling of the entire product offered by the firm. The people can be classified as the youth, the working people and the tourists. The working people do not have the sufficient time to do their breakfast and therefore it is their urgent need to consume fast foods before going to their workplace.     

Target Market

Target market segment strategy needs to be implemented as per the desired market potential which can give a large amount of profitability to the firm.  The company needs to focus on the people of age between 14 to27 years of old as a large percentage of these people are more prone to the consumption of fast food. The secondary target of the firm is of people ages between 25 to 37 years of age. Thus, there exists a crucial need of formulating effective targeting strategies in order to attract a large number of the consumers towards the firm (Dhaugoda and Dang, 2015).  Moreover, in order to attract the different types of the consumers, the company needs to provide different lunch strategies as per the satisfaction of the customers.  It has been seen that throughout the competitive marketplaces, there are many of the well-known firms which have significantly implemented several strategies as to increase the satisfaction level of their respective consumers and thus, the formulation and adoption of the effective strategies will help in evaluating the desired growth of the firm to a large area (Mullins, 2012).  Formulation of the list of different types of the food such as Pizza or burgers which are considered to be the most consumed food for the people throughout the nation.



Some if its strongest competitors throughout the Australian market segments are McDonald Corporation and Starbucks which are measured to have a large number of the customer database.


Formulation of the marketing strategies is important as it helps in evaluating the promotional campaigns for the respective products offered by the firm to a wide area of the people concerned.  Market trends need to b evaluated as it creates a great impact on the formulation of the effective business plans. In order to market the products offered by the firm, it becomes more important to assist customers with appropriate products and service offerings (Tran, 2016).  The use of the elements of the marketing mix is vital as it facilitates the growth of the business by promoting the products and services effectively to a wide area of the consumers.  


The quality of the products plays the most important role in enhancing the selling of the fast food offered by the firm. Reliability of the products increases the satisfaction level of the customers and thus accounts for more customers providing an elevation in the profitability of the firm.


There needs to be differentiation in the pricing strategy as compared with all its competitors because delivering of the good quality of the products at a lower price increase the selling of the food products in large numbers. Moreover, the firm needs to offer the best quality of the fast food products at lower or cheaper prices as to capture the middle-income people to a great extent.


Selection of the suitable place plays most important role in evaluating the effectiveness and the efficiency of the firm (McKenzie, 2015). The changes in the current trends have made it very useful to use online internet platform for the selling of the products and especially for home delivery. On the other hand, the selection of the different retail outlets will increase the profitability of the organization.


There are different types of the promotional tools which increase the selling of the goods in front of the customers. Social media and the internet platforms can be used for the advertisements as to promote the products to a large segment o the people.  Uses of the celebrities are required for promoting the products to a wide area of the audiences.

Strategies and Tactics

The strategies should be formulated identifying the different factors prevailing throughout the concerned market segments of Australia. There are different types of strategies will help in bringing out the preferred success for Evaluation of the business plan for Domino’s Pizza.  


Marketing Strategy

Marketing plan seeks to aim exact consumers by messages which are most probable to sketch their concentration. It engages cyclic advertising as well as particular promotions as plans to attain market supremacy. Other plans that influence marketplace position for a corporation are acquired challenging companies, flattering the select machine for an accepted brand and using price tactics to draw customers. Microsoft plus Apple are, yet again, the example of advertising strategy as well as tactics. 

Operational Strategy

The operational plan of lower expenses to create greater income includes lower respective operational expenses by install the newest computer project resource development software, hiring agreement workers to evade paying the profit, establish numerous facilities close up to respective target clientele, invest in the enhanced place and apparatus (Oliveira et al., 2015). Reduction in the cost price of all the products are of great importance and this can be done with the help of effective operational business strategies.  

Financial Strategy

This is supposed to be vital to the success of the business plan for any of the firm concerned.  The accumulation of the financial resources is important as they help in completing the business processes effectively.  Tactics to attain the plan of enough currency to funding growth may engage factoring or borrow alongside respective accounts receivable, obtain payroll finance to be capable of paying individuals employees throughout times while people have huge outflows of currency, finding the investor or taking individuals’ corporation public.

Financial Plan

The financial plan includes all the expenses regarding the carrying out of the business plan for Dominos Pizza. 


                                                                  YEAR 1                 YEAR 2                                 YEAR 3

Sales                                                         $279,163                  $558,327                      $1,116,654

Direct Cost of Sales                        $61,957                  $123,914                      $247,827

Other Costs of Sales                           $0                                      $0                                  $0

TOTAL COST OF SALES                         $61,957                 $123,914                     $247,827

Gross Margin                                     $217,207                         $434,413                     $868,826

Gross Margin %                                           77.81%                  77.81%                                      77.81%


Payroll                                                   $88,200                       $262,000                     $449,600

Marketing/advertising                                $10,000    $10,000           $10,000

Depreciation                                                     $0                      $0                    $0

Rental fee                                                                      $174,000       $248,000         $298,000

Utilities                                                           $2,550                $5,000                         $8,000

New place setup                                          $25,000   $50,000           $50,000

Total working Expenses                          $299,750     $575,000         $815,600

Profit previous to Interest in addition to Taxes                     ($82,543)          ($140,587)            $53,226

EBITDA                                                                    ($82,543)          ($140,587)       $53,226

Interest cost                                              $0  $0                     $0

Taxes Incurred                                                            $0        $0                     $0

Net earnings                                                      ($82,543)       ($140,587)       $53,226

Net earnings/Sales                                                             -29.57%           -25.18%     4.77%

Break-Even Analysis


Monthly unit Break-even


Monthly income Break-even




Standard Per-Unit Revenue


Average Per-Unit unpredictable price


Estimated Monthly permanent price


Critical Risks  

There are certain risks which need to be identified before the formation of the business plan as these risks significantly affect the execution of the business procedure in many ways.  These risks are product risks, market risks, people risks, financial risks and competitive risks (Le, 2015). These risks affect the execution of the business plan for any of the concerned firm I many ways significantly.   Financial risks are supposed to be that risk that a corporation suffers out of cash or mishandle their currency in some method. Restaurants company may contain huge monetary risk, as bad lend policies mutual with reduced asset policies be able to go under them. Competitive risks are those risks that a rival manufactured goods or service is capable of winning. 

Conclusion and Recommendations 

The research paper eventually presents the business plan for Domino’s Pizza throughout the Australia market segments. Identification of the market segments along with the risks are of huge importance as they help in formulating effective strategies to bring positive outcomes for the firm.   The secondary market segment is the Marketplace around Sydney as it accounts for a large number of the people.  Formulation of the list of different types of the food such as Pizza or burgers which are considered to be the most consumed food for the people throughout the nation. There need to be some recommendations as to increase the efficiency of the business practices and to bring pout the success for the developed business plan          .

Firstly, there should be a team of certain members who will research the entire market segments and will help in identifying the factors affecting the business processes in different ways.  Next, is the active participation of the employees in the decision-making process in order to bring out the positive results for the firm and these needs to be done effectively. The use of the marketing mix should be done in an effective way; moreover, the products should be promoted efficiently throughout the target market areas with celebrities as this creates a great impact on the customers.  There should appropriate formulation of the strategies in order to reduce the risks associated with the execution of the business plan. The customer should be assisted with great quality of services and therefore, the recruitment of the potential employees is important.



Barringer, B., 2012. Entrepreneurship: Successfully Launching New Ventures, (2012).

Chen, K.W.K., 2013. Korean restaurant business plan in Taiwan (Doctoral dissertation, Massachusetts Institute of Technology).

Dhaugoda, S., and Dang, J., 2015. ''Asian BBQ House restaurant business plan.

Hair, J.F., 2015. Essentials of business research methods. ME Sharpe.

Kwok, L. and Yu, B., 2013. Spreading social media messages on facebook an analysis of restaurant business-to-consumer communications. Cornell Hospitality Quarterly, 54(1), pp.84-94.

Le, N.P., 2015. Small Ethnic Restaurant Business Owner Strategies to Remain Operable Beyond 7 Years.

McKenzie, D.J., 2015. Identifying and spurring high-growth entrepreneurship: experimental evidence from a business plan competition. World Bank Policy Research Working Paper, (7391).

Mullins, J., 2012. The new business road test: What entrepreneurs and executives should do before writing a business plan. Pearson UK.

Oliveira, M.D.S., Moretti, S.D.A. and Pozo, H., 2015. The hospitality and restaurant management: evidence from a multiple case study in São Paulo, SP, Brazil. Rosa dos Ventos, 7(1), pp.20-33.

Tran, L.Q.P., 2016. Business Plan: Elpis Restaurant.


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