Domino's (DMP): A little look at Project 3TEN
In June of 2016, Domino's Pizza Enterprises announced Project 3/10, an initiative which over the next 3-5 years aimed to have fresh-made pizzas ready for pick up in three minutes or delivered to a customers house in 10 minutes.
Fast forward just over three years to current day and the average delivery time for a store ranges from a low of 21.20 minutes in Queensland and a high of 25.38 minutes in the Northern Territory. 14 stores have an average of 15 minutes or less, with 12 minutes being the lowest. A large majority deliver in 20 minutes or more on average. 200 stores deliver in 24 minutes or more on average, with the highest being 40 minutes.
On 12 August 2019, Domino’s published a post declaring "A Brisbane pizza store has set a new Australian record for fast food – consistently delivering freshly-made pizzas to customer's houses in less than six minutes for an entire week...Domino's Ferny Grove delivered every order for a week in an average time of 5 minutes 27 seconds…"
Interestingly, the Domino's website still lists that store as having an average delivery time of 14 minutes, the same as it was in March 2019, prior to setting the record. This raises questions about the sustainability of the approach and the attainability of Project 3TEN.
Some things to consider about this:
- The fast ovens Domino’s use have a 3.5 minute cook time under the right circumstances, assuming a franchisee can afford one. Make time, and cutting/boxing time needs to be included.
- Time savings are produced through predicting an order and starting to make the pizza before a customer completes a transaction. This can create a scenario where an order is prepared for a customer who cancelled or changed the order, creating wastage and increased costs.
- More employees are needed on shift to improve the production speed, driving up labour costs.
- 'Runners' are employed in peak periods to bus pizzas out to delivery drivers. Youths running from a slippery kitchen across tiles and out to the street with a hand full of boxes to a rider or driver who only has minutes to deliver, could create a potential health and safety risk.
- Franchisee and employee stress levels are likely to be elevated, especially when a delivery deadline is not met and the delivery employee is aware that the franchisee is obligated to provide the customer a free meal as a result.
- Product quality suffers and mistakes are made when super fast deliveries are the focus. Pizzas also need a small amount of time for the cheese to set out of the oven to ensure the pizza maintains its integrity before being raced to the customer.
The average delivery time research was conducted using the Dominos.com.au website. Average delivery times were gathered from the 695 store information pages available on the website. Four stores did not display a number and were excluded from the result set.
This was compiled and prepared by Diligence Research Pty Ltd (Diligence Research). The information was collected using qualitative data collection techniques, with all research sources believed to be reliable. No representations or warranties (expressed or implied) are made by Diligence Research or their representatives, to its accuracy, completeness or correctness. Views, ideas, opinions and estimates contained within, stand as Diligence Researchs judgment as of the date of this post. Nothing in this constitutes legal, financial or investment advice, and it has been prepared without regard to individual financial circumstances or objectives of those who receive it. Diligence Research does not accept liability whatsoever for any direct or consequential loss arising from any use of this information.