How to build your startup and make it an empire: the example of Domino’s Pizza chain and its fantastic founder

Do you know the story of Tom Monaghan, the founder of Domino’s Pizza?

Tom Monaghan, founder of Domino's Pizza, faced many early challenges, including losing his father and growing up in foster care, which built his resilience. After serving in the Marines and losing his savings in a failed investment, he took a newspaper delivery job, learning the value of efficient delivery. With a $900 loan, he and his brother bought a struggling pizzeria called Dominic's. In 1965, he rebranded it as Domino's and started expanding through franchises, turning it into a successful business.

Ahmad Piraiee (Consultant at Stanford University, Director at Startup Grind Warsaw and Tech Star Startup Digest) is convinced that ideas alone don't captivate interest – stories sell your product. Therefore, he structured his masterclass for founders around the story of the Domino’s Pizza Empire. Let’s dive deeper and see what lessons we can learn now from the business built more than 60 years ago (spoiler – way too many of them!)

💡The idea is not always original, added value wins

Tom was never a chef, had never owned a restaurant, nor had he ever worked in one. But he started his own “competitors research”: after a long day in a pizzeria, he walked around the town trying slices in different places and watching how competitors are operating their businesses looking for ideas to implement in his restaurant. He even got a recipe from one Italian, who owned a pizza place – Tom just took it and added it to the menu. However, it wasn’t just this little trick that made him successful; it was his well-constructed operations. His differentiator on the market was his delivery model. He promised to deliver pizza at some exact time. It was risky, but it became a game changer.

📈 Strategic growth and market understanding

One of the key strategies that helped Domino’s grow was market research – identifying his main customers (students) and catering specifically to that demographic. He realized their need for quick, convenient meals, and tailored Domino’s offerings to meet these demands. Tom implemented innovative ideas like a dedicated delivery system, which differentiated Domino’s from other pizzerias at the time. The lesson here is the importance of aligning business operations with customer needs.

👀 Scalability and vision

Soon after his first success, he decided to open the next pizzeria. He thought, “I'm doing it in one location, so I can do it in multiple locations and make more money”. He didn’t rest or spend money on a car or house like most of the people.  He put the money into his business and made it scalable.

⚖️ Legal insights 

Tom entered a partnership that almost cost him his company due to unfavorable terms. After almost losing his company, Monaghan understood the critical need for legal prudence. Entrepreneurs must understand their agreements fully and seek competent legal advice when necessary.

🧠 Entrepreneur mindset

Tom once said that before I become 30, I will be a millionaire. This is one of those things that you often see in the life of entrepreneurs. They don't have small dreams, they dream big. 

🧗Building a foundation for success

Monaghan realized the significance of not only addressing customer demands but also ensuring employee well-being and safety. This realization led to improved working conditions and a revised delivery policy, prioritizing safety over speed. 

🍏 Pioneering innovations in the industry

Always driven to innovate, Monaghan invested in research and development which led Domino’s to create new products and services that appealed to a wider audience. This included the introduction of gluten-free options, vegan choices, and a robust online ordering system, all of which broadened Domino’s market reach and customer base.

🌐 Continued global expansion

With a renewed perspective, Domino's resumed its global expansion. Learning from previous missteps, the company implemented stringent quality control measures, ensuring consistency across all locations. As a result, Domino’s successfully established thousands of outlets worldwide and became a global leader in the pizza industry.

👩🏫 Empowering the next generation

Believing in the power of mentorship and education, Monaghan established programs to foster young entrepreneurs who aspired to follow in his footsteps. This not only ensured a strong leadership chain within Domino’s but also contributed to the broader entrepreneurial community, encouraging innovation and business growth.

🎙Maintaining integrity and separation in leadership

Tom Monaghan's leadership journey underscores the critical balance between personal beliefs and professional responsibilities. He exemplified that while leaders are free to hold personal views, once they step into a role representing a company, they must be vigilant about separating these from the company's interests. Monaghan’s respectful approach in maintaining this separation ensured that Domino’s did not become a platform for personal ambitions but remained focused on broader business objectives and customer satisfaction.

📱Embracing technology and market leadership

Recognizing the potential of technology, Domino’s early adoption of a mobile app was pivotal. This move, predating mainstream applications like Uber, revolutionized customer interactions with real-time updates enhancing the user experience. Furthermore, adventurous forays into drone delivery and autonomous vehicles highlighted Domino’s commitment to innovation, reinforcing its stature not just as a pizza company but as a tech-forward enterprise.

The legacy of a visionary leader

As Monaghan stepped away from Domino’s, his legacy was defined not only by the challenges and triumphs but also by his forward-thinking approach that transformed Domino’s into a global leader. The separation of personal ethos from corporate strategy, innovative crisis management, and an unwavering commitment to quality and transparency are hallmarks of his tenure. Monaghan’s journey illustrates a blueprint for future leaders on nurturing a robust, ethical, and innovative business environment capable of weathering storms and emerging stronger.