Eat Your Heart Out, Papa John’s: Domino’s Pizza Beat You on This One.

Welcome to the latest in pizza-delivering-ordering technology.

Jun 29, 2014 at 10:00AM

Investors
Source:  Domino's Pizza

"Let me repeat that. We are well on our way to becoming the first national pizza chain to achieve a domestic systemwide digital sales mix of 50%," said Tony Thompson, COO of Papa John's International (NASDAQ:PZZA) during a February conference call. He sounded almost like he was expecting a standing ovation. Papa John's takes great pride in achieving various technology "firsts." But Domino's Pizza (NYSE:DPZ) beat it to the punch lately with the ultimate in lazy and convenience.

And you thought two clicks was easy. Get a load of this!
Papa John's was the first national pizza company to offer systemwide online ordering. It was the first to offer systemwide text ordering. It was the first to offer a digital loyalty-rewards program. It will likely be the first one to have more than half of its domestic sales coming from digital channels as well.

Papa John's loves to use the phrase "technology leadership position" to describe itself. And it deserves it. The company's pioneering efforts have made ordering a delicious pizza from anywhere, anytime the easiest and best thing since sliced pepperoni.

Images

Source: Wikimedia Commons

But now, in bit of a funny move, Domino's Pizza announced on June 16 new voice- ordering apps. Two clicks? That's so 2013. Now with Domino's Pizza it takes no clicks. The irony is you just use your voice on the phone to order a pizza. Um, using your phone and your voice to order a pizza? We used to do that back in the day. It's called a land-line telephone.

Joking aside, of course this is beneficial. The app will still have your credit card info, allow you to order from other locations besides home without thumbing through a phone book, remember what you like to order, and most importantly you won't have to be on hold and spell out your address.

You say tomato, I say tomahto
Domino's Pizza and Papa John's love to take shots at each other. For example, Domino's Pizza calls itself the recognized leader in pizza delivery, referring to being the largest chain in terms of sales and locations. Papa John's, in obvious response, calls itself the recognized leader in pizza quality, borrowing the old cliche that quality is more important than quantity.

In the latest release, Domino's Pizza calls itself the "Technology Trailblazer" as a shot at Papa John's technology-leader touting. Patrick Doyle, CEO of Domino's Pizza, stated:

There will be a day when typing on keyboards or with thumbs on mobile devices will come to a close; we want to be the ones who continue to advance the technology experience -- hand-in-hand with our customers.

The release went on to say that it "puts Domino's at the forefront of an intuitive ordering method that is a true first within both traditional and e-commerce retail." A true first? Ouch. That's going to leave a mark on Papa John's.

Photo

Source: Domino's Pizza

Boxing it all up
Something really interesting about these two fine companies that are both reporting exploding sales and net income for years now is that both Domino's Pizza and Papa John's are showing us an example of how sometimes when two competitors go at it, the result is actually healthy, mutually beneficial, and helpful for advancement. The technological and shot-taking rivalry between the two has resulted in both of them rapidly advancing their digital technology in an effort to get one up on the other.

The result, according to both of their conference calls, is that they have left the mom-and-pop stores and regional chains in the dust as consumers turn to digital orders more and more, even if it means giving up their more-favored local and traditional pizza store. Expect top- and bottom-line growth for these two to continue for many years, as the smaller competition is stuck in the digital Stone Age.

It's not just pizza delivered to the couch that's big money
You know cable's going away. But do you know how to profit? There's $2.2 trillion out there to be had. Currently, cable grabs a big piece of it. That won't last. And when cable falters, three companies are poised to benefit. Click here for their names. Hint: They're not Netflix, Google, and Apple. 

 

 

Nickey Friedman has no position in any stocks mentioned. The Motley Fool owns shares of Papa John's International. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

1 Key Step to Get Rich

Our mission at The Motley Fool is to help the world invest better. Whether that’s helping people overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we can help.

Feb 1, 2016 at 4:54PM

To be perfectly clear, this is not a get-rich action that my Foolish colleagues and I came up with. But we wouldn't argue with the approach.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich" rated The Motley Fool as the #1 place online to get smarter about investing.

"The Motley Fool aims to build a strong investment community, which it does by providing a variety of resources: the website, books, a newspaper column, a radio [show], and [newsletters]," wrote (the clearly insightful and talented) money reporter Kathleen Elkins. "This site has something for every type of investor, from basic lessons for beginners to investing commentary on mutual funds, stock sectors, and value for the more advanced."

Our mission at The Motley Fool is to help the world invest better, so it's nice to receive that kind of recognition. It lets us know we're doing our job.

Whether that's helping the entirely uninitiated overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we want to provide our readers with a boost to the next step on their journey to financial independence.

Articles and beyond

As Business Insider wrote, there are a number of resources available from the Fool for investors of all levels and styles.

In addition to the dozens of free articles we publish every day on our website, I want to highlight two must-see spots in your tour of fool.com.

For the beginning investor

Investing can seem like a Big Deal to those who have yet to buy their first stock. Many investment professionals try to infuse the conversation with jargon in order to deter individual investors from tackling it on their own (and to justify their often sky-high fees).

But the individual investor can beat the market. The real secret to investing is that it doesn't take tons of money, endless hours, or super-secret formulas that only experts possess.

That's why we created a best-selling guide that walks investors-to-be through everything they need to know to get started. And because we're so dedicated to our mission, we've made that available for free.

If you're just starting out (or want to help out someone who is), go to www.fool.com/beginners, drop in your email address, and you'll be able to instantly access the quick-read guide ... for free.

For the listener

Whether it's on the stationary exercise bike or during my daily commute, I spend a lot of time going nowhere. But I've found a way to make that time benefit me.

The Motley Fool offers five podcasts that I refer to as "binge-worthy financial information."

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. It's also featured on several dozen radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable ... and I don't say that simply because the hosts all sit within a Nerf-gun shot of my desk. Rule Breaker Investing and Answers contain timeless advice, so you might want to go back to the beginning with those. The other three take their cues from the market, so you'll want to listen to the most recent first. All are available at www.fool.com/podcasts.

But wait, there's more

The book and the podcasts – both free ... both awesome – also come with an ongoing benefit. If you download the book, or if you enter your email address in the magical box at the podcasts page, you'll get ongoing market coverage sent straight to your inbox.

Investor Insights is valuable and enjoyable coverage of everything from macroeconomic events to investing strategies to our analyst's travels around the world to find the next big thing. Also free.

Get the book. Listen to a podcast. Sign up for Investor Insights. I'm not saying that any of those things will make you rich ... but Business Insider seems to think so.


Compare Brokers