1 00:00:10,960 --> 00:00:14,880 Speaker 1: Hello, and welcome to another episode of the Odd Lots podcast. 2 00:00:14,920 --> 00:00:19,119 Speaker 1: I'm Joe Wisen'tal and I'm Tracy Allaway. Tracy, I have 3 00:00:19,120 --> 00:00:22,960 Speaker 1: a question about the lockdowns or I guess Hong Kong 4 00:00:23,079 --> 00:00:26,400 Speaker 1: never really had all lockdown, did it? Well? So we 5 00:00:26,440 --> 00:00:29,920 Speaker 1: had a lot of bars and restaurants that closed just 6 00:00:30,000 --> 00:00:32,440 Speaker 1: because people weren't going out, But I don't think we 7 00:00:32,520 --> 00:00:36,560 Speaker 1: ever ended up having a formal lockdown exactly like they've 8 00:00:36,600 --> 00:00:38,560 Speaker 1: had in the States, which is kind of weird because 9 00:00:38,560 --> 00:00:40,600 Speaker 1: if you think about it, you know, Hong Kong was 10 00:00:40,640 --> 00:00:43,480 Speaker 1: early to the coronavirus and people were really worried about 11 00:00:43,520 --> 00:00:45,879 Speaker 1: what would happen here. But I guess in the end 12 00:00:46,000 --> 00:00:47,879 Speaker 1: we've we've come out pretty good and we've had like 13 00:00:48,360 --> 00:00:53,520 Speaker 1: a decent experience of the lockdown, So you I guess 14 00:00:53,560 --> 00:00:56,080 Speaker 1: you guys have missed and maybe it would be different 15 00:00:56,080 --> 00:00:58,800 Speaker 1: in Hong Kong. Anyway, this phenomenon of like here in 16 00:00:58,840 --> 00:01:02,240 Speaker 1: the US, like people are ordering pizza like crazy, and 17 00:01:02,640 --> 00:01:05,360 Speaker 1: obviously pizza delivery is one of the big things. But 18 00:01:05,400 --> 00:01:07,640 Speaker 1: I guess I don't know if, like I guess, pizza 19 00:01:07,720 --> 00:01:09,520 Speaker 1: is probably not as big of a cuisine there, but 20 00:01:09,680 --> 00:01:12,440 Speaker 1: without the lockdown, You guys have probably missed this whole 21 00:01:12,440 --> 00:01:15,479 Speaker 1: phenomenon of people just eating tons and tons of pizza 22 00:01:15,560 --> 00:01:18,760 Speaker 1: during this whole crisis, the cultural phenomenon of people ordering 23 00:01:18,880 --> 00:01:21,039 Speaker 1: lots of pizza. You're gonna have to explain this to me, 24 00:01:21,080 --> 00:01:24,959 Speaker 1: because yeah, I've missed this. You don't know. I was thinking, Tracy, 25 00:01:25,040 --> 00:01:27,600 Speaker 1: I was thinking you should you should just move back 26 00:01:27,600 --> 00:01:30,440 Speaker 1: to the US. You can talk about that another time. 27 00:01:30,480 --> 00:01:33,360 Speaker 1: But anyway, it's wait, it's not fair to try to 28 00:01:33,440 --> 00:01:36,440 Speaker 1: leure me back to the US using pizza. That's not fair. 29 00:01:36,520 --> 00:01:39,520 Speaker 1: Come on, al right, Well we'll move on from that. 30 00:01:39,600 --> 00:01:44,040 Speaker 1: But anyway, pizza is booming. In fact, I just last 31 00:01:44,120 --> 00:01:46,200 Speaker 1: night I was on my bike and I biked buy 32 00:01:46,200 --> 00:01:48,600 Speaker 1: a Dominoes and they had this big sign. Maybe i'll 33 00:01:48,600 --> 00:01:50,480 Speaker 1: put it in the post where you post the podcast. 34 00:01:50,680 --> 00:01:52,920 Speaker 1: They had this big sign that's his business is booming. 35 00:01:53,080 --> 00:01:55,919 Speaker 1: We are hiring. People are ordering a lot of pizza 36 00:01:56,000 --> 00:01:58,920 Speaker 1: these days. One other question, have you read the novel 37 00:01:59,000 --> 00:02:03,080 Speaker 1: snow Crash by Neil Stevenson Snow Crash, No, I haven't. 38 00:02:03,120 --> 00:02:06,680 Speaker 1: That's that. It's a sci fi book. I want to say, right, 39 00:02:07,440 --> 00:02:09,160 Speaker 1: I haven't read it. Yeah, it's kind of like a 40 00:02:09,520 --> 00:02:12,040 Speaker 1: it's a cyberpunk novel, so to speak of. There's this 41 00:02:12,120 --> 00:02:15,640 Speaker 1: great line in they're talking about the description of society 42 00:02:15,720 --> 00:02:18,280 Speaker 1: and this future state. He says, there's only four things 43 00:02:18,280 --> 00:02:23,040 Speaker 1: we do better than anyone else. Music, movies, microcode, by 44 00:02:23,040 --> 00:02:25,640 Speaker 1: which you mean software, and high speed pizza delivery. Like 45 00:02:25,680 --> 00:02:28,640 Speaker 1: that is the essentially the U S economy of the future, 46 00:02:29,120 --> 00:02:31,680 Speaker 1: and this world of music, movies, software at high speed 47 00:02:31,720 --> 00:02:34,240 Speaker 1: pizza delivery. It's like I've been thinking a lot about 48 00:02:34,520 --> 00:02:39,200 Speaker 1: snow crash during this crisis. All right, So coronavirus is 49 00:02:39,320 --> 00:02:44,280 Speaker 1: proof of America's dystopian prowess for high speed pizza delivery. 50 00:02:44,360 --> 00:02:47,040 Speaker 1: Is that what you're saying? Yeah, because it's all about 51 00:02:47,040 --> 00:02:52,720 Speaker 1: how like all manufacturing has been outsourced to other countries. Um, 52 00:02:52,880 --> 00:02:56,960 Speaker 1: the US doesn't build anything. There's all these divisions between states, 53 00:02:57,120 --> 00:03:00,680 Speaker 1: and basically everyone is either a coder or eiza delivery 54 00:03:00,720 --> 00:03:03,720 Speaker 1: person in this book, so everyone I should read it anyway. 55 00:03:04,280 --> 00:03:08,359 Speaker 1: One other interesting fact, you know, I mentioned that Domino's 56 00:03:08,520 --> 00:03:11,320 Speaker 1: was booming, and one of my favorite facts is that 57 00:03:11,880 --> 00:03:16,520 Speaker 1: Domino's Pizza came public in two thousand four, about two 58 00:03:16,600 --> 00:03:20,600 Speaker 1: weeks before Google. Did you know that? Yeah, I've seen 59 00:03:20,680 --> 00:03:22,400 Speaker 1: the chart. By the way, can I just say, before 60 00:03:22,400 --> 00:03:25,160 Speaker 1: we go any further, I feel like I feel like 61 00:03:25,200 --> 00:03:27,359 Speaker 1: you could talk about pizza for like a good three 62 00:03:27,440 --> 00:03:31,239 Speaker 1: or four hours if let you like, you've already brought 63 00:03:31,280 --> 00:03:35,680 Speaker 1: in like cyberpunk sci fi fiction and now you're doing uh, 64 00:03:35,880 --> 00:03:38,760 Speaker 1: now you're doing the stock market stuff. Okay, well anyway, Yes, 65 00:03:38,840 --> 00:03:41,160 Speaker 1: I have seen the chart. Anyone who spent any time 66 00:03:41,200 --> 00:03:44,360 Speaker 1: on Twitter has probably seen it as well. It's pretty amazing. 67 00:03:44,640 --> 00:03:48,240 Speaker 1: The basic idea is that both Domino's Pizza and Google 68 00:03:48,440 --> 00:03:50,720 Speaker 1: went public around the same time. I think it was 69 00:03:50,760 --> 00:03:53,040 Speaker 1: two thousand four, and if you look at the chart, 70 00:03:53,640 --> 00:03:57,200 Speaker 1: they've basically had like a pretty similar trajectory. So everyone 71 00:03:57,240 --> 00:04:00,440 Speaker 1: thinks if you invested money in the early two thousands 72 00:04:00,640 --> 00:04:03,960 Speaker 1: in Google, then you haven't made your you know this 73 00:04:04,120 --> 00:04:07,560 Speaker 1: tech genius and you've made millions of dollars. No one 74 00:04:07,600 --> 00:04:10,200 Speaker 1: ever thinks, well, actually, if you put money into this 75 00:04:10,360 --> 00:04:15,080 Speaker 1: simple pizza company, you would have made the same amount. Yeah. 76 00:04:15,160 --> 00:04:19,800 Speaker 1: So Google went public August two thousand four, Dominoes went 77 00:04:20,040 --> 00:04:24,480 Speaker 1: Dominoes went public July or so, barely a month apart, 78 00:04:25,080 --> 00:04:27,200 Speaker 1: and both of them are up about twenty eight and 79 00:04:27,279 --> 00:04:30,200 Speaker 1: a half bold since then, Like it was truly incredible 80 00:04:30,240 --> 00:04:32,760 Speaker 1: that the lines are identical. Anyway, Okay, that is a 81 00:04:32,760 --> 00:04:35,200 Speaker 1: lot of set up. We're going to talk about pizza 82 00:04:35,279 --> 00:04:37,479 Speaker 1: today because I want to get the story of how 83 00:04:37,520 --> 00:04:42,480 Speaker 1: this one company did so well, how pizza company performed 84 00:04:42,520 --> 00:04:45,120 Speaker 1: so well on the market. And I thought, you know, 85 00:04:45,200 --> 00:04:48,479 Speaker 1: with the coronavirus crisis getting everyone to eat pizza, I 86 00:04:48,480 --> 00:04:50,560 Speaker 1: thought this was a good time to sort of talk 87 00:04:50,600 --> 00:04:54,280 Speaker 1: about the incredible story of Domino's Pizza. I feel like 88 00:04:54,279 --> 00:04:56,320 Speaker 1: you've been waiting a long time for this. I feel 89 00:04:56,320 --> 00:04:58,120 Speaker 1: like you have a lot to get off your chest here, 90 00:04:58,160 --> 00:05:00,360 Speaker 1: so let's do it. It's actually done. Want to get 91 00:05:00,360 --> 00:05:01,800 Speaker 1: off my chest. There's just a bunch I want to 92 00:05:01,800 --> 00:05:03,840 Speaker 1: know because I've always been fascinated, but actually don't know 93 00:05:04,200 --> 00:05:06,919 Speaker 1: about the story. Everything I've said so far is the 94 00:05:06,960 --> 00:05:09,800 Speaker 1: extent of my knowledge. But we have a guest that 95 00:05:09,839 --> 00:05:12,480 Speaker 1: knows a lot about the restaurant industry, knows a lot 96 00:05:12,520 --> 00:05:15,840 Speaker 1: about the pizza business. There's a lot about Dominoes in particular. 97 00:05:16,279 --> 00:05:18,640 Speaker 1: I want to bring in Jonathan Mays. He is the 98 00:05:18,800 --> 00:05:23,880 Speaker 1: editor in chief at Restaurant Business Magazine. Jonathan, thank you 99 00:05:23,960 --> 00:05:26,240 Speaker 1: very much for joining us. Thank you. I'm still trying 100 00:05:26,279 --> 00:05:31,000 Speaker 1: to process connecting cyberpunk with pizza delivery. It's still I'm 101 00:05:31,040 --> 00:05:33,080 Speaker 1: trying to register that, so you'll have to excuse me 102 00:05:33,120 --> 00:05:36,280 Speaker 1: for a minute. But it's true, right that people are 103 00:05:36,360 --> 00:05:40,159 Speaker 1: ordering a crazy amount of pizza these days. Yeah, yeah, yeah, 104 00:05:40,320 --> 00:05:44,040 Speaker 1: and uh, it doesn't really matter like all three the 105 00:05:45,240 --> 00:05:48,520 Speaker 1: well probably the fourth, but that the fourth one, Little Caesar's, 106 00:05:48,560 --> 00:05:50,160 Speaker 1: is in public. But if you look at the big 107 00:05:50,200 --> 00:05:52,839 Speaker 1: pizza chains are all doing double digit same store sales 108 00:05:52,920 --> 00:05:56,800 Speaker 1: right now, and um, people are just sitting at home 109 00:05:57,000 --> 00:06:01,200 Speaker 1: and they have all sorts of cash, and where else 110 00:06:01,240 --> 00:06:03,880 Speaker 1: are they going to spend it? Might as well order 111 00:06:03,880 --> 00:06:07,160 Speaker 1: a pizza. Wait, I have a dumb question, and you know, 112 00:06:07,240 --> 00:06:09,640 Speaker 1: forgive me, but I haven't been in the States for 113 00:06:09,680 --> 00:06:12,279 Speaker 1: this crisis, so you know, indulge me. But why pizza 114 00:06:12,600 --> 00:06:16,480 Speaker 1: versus other food delivery? Like, I get that pizza is delicious, 115 00:06:16,480 --> 00:06:19,120 Speaker 1: but it seems like you are both talking about a 116 00:06:19,160 --> 00:06:23,000 Speaker 1: genuine pizza phenomenon here. So why is it so popular 117 00:06:23,080 --> 00:06:28,400 Speaker 1: this time around? Well, all delivery is doing well. So um, 118 00:06:28,440 --> 00:06:31,440 Speaker 1: if you look at whether it's a fast food chain 119 00:06:31,560 --> 00:06:35,160 Speaker 1: or if it's a casual binding, if they do delivery, um, 120 00:06:35,200 --> 00:06:39,120 Speaker 1: you know their delivery sales are way up. Everybody's delivery 121 00:06:39,120 --> 00:06:42,120 Speaker 1: sales are way up. And and the thing about pizzas 122 00:06:42,160 --> 00:06:44,320 Speaker 1: that we just they we can break it out. We 123 00:06:44,360 --> 00:06:47,599 Speaker 1: have the best numbers, we have comparison numbers for for 124 00:06:47,640 --> 00:06:49,480 Speaker 1: pizza chains, and of course they do it better than 125 00:06:49,520 --> 00:06:53,240 Speaker 1: anybody else for the most part. Um, it's a big value. 126 00:06:53,760 --> 00:06:57,760 Speaker 1: So that's kind of the story. Is not necessarily that 127 00:06:57,920 --> 00:07:00,840 Speaker 1: everyone had this crazy craving for pizza. Uh But if 128 00:07:00,880 --> 00:07:06,680 Speaker 1: there's one food in America that long before grub Hub 129 00:07:06,839 --> 00:07:11,960 Speaker 1: or long before seamless or whatever, people have always ordered delivery, 130 00:07:11,960 --> 00:07:14,680 Speaker 1: it's probably a Chinese food is the other one. But 131 00:07:15,040 --> 00:07:18,920 Speaker 1: pizza it's just always been the sort of classic delivery state. Yeah, 132 00:07:19,000 --> 00:07:22,400 Speaker 1: and they've they have the best. They have really good 133 00:07:22,520 --> 00:07:26,280 Speaker 1: uh um set up, They control their delivery drivers, they 134 00:07:26,320 --> 00:07:29,760 Speaker 1: you know, so you know, when it's from a value standpoint, 135 00:07:29,880 --> 00:07:33,400 Speaker 1: it's still you can feed your family for like twenty bucks. 136 00:07:33,520 --> 00:07:37,000 Speaker 1: It's it's uh you know, it's it's a it's all 137 00:07:37,080 --> 00:07:39,240 Speaker 1: really easy to do and and that sort of thing, 138 00:07:39,240 --> 00:07:43,360 Speaker 1: and people are really just accustomed to it. So so 139 00:07:43,400 --> 00:07:45,920 Speaker 1: you mentioned they have a pretty good setup. Can you 140 00:07:46,080 --> 00:07:50,800 Speaker 1: walk us through what makes the pizza delivery industry special, 141 00:07:51,080 --> 00:07:54,280 Speaker 1: how do the economics of that platform or the way 142 00:07:54,320 --> 00:07:58,280 Speaker 1: it actually operates again, how did they differ from other 143 00:07:58,560 --> 00:08:03,760 Speaker 1: food delivery services versus third party delivery or I guess 144 00:08:03,800 --> 00:08:07,520 Speaker 1: even like a Chinese food restaurant that does delivery, Like 145 00:08:07,640 --> 00:08:12,840 Speaker 1: what differentiates the Domino's business model from other food chains 146 00:08:12,840 --> 00:08:16,720 Speaker 1: that might do delivery. Yeah, that's a really good question. 147 00:08:16,840 --> 00:08:19,400 Speaker 1: I mean, I think that there are some other issues 148 00:08:20,040 --> 00:08:25,000 Speaker 1: with you know, Chinese restaurants that have prevented that sector 149 00:08:25,160 --> 00:08:29,720 Speaker 1: from you know, being as sort of as big as 150 00:08:29,800 --> 00:08:31,440 Speaker 1: a pizza chains. And I think a lot of it 151 00:08:31,480 --> 00:08:33,800 Speaker 1: has to do with the process of cooking Chinese food 152 00:08:33,800 --> 00:08:36,680 Speaker 1: and that sort of thing. Everybody eats pizza. It's a 153 00:08:36,720 --> 00:08:40,040 Speaker 1: fundamental value. So you know, you get a pizza from 154 00:08:40,160 --> 00:08:43,560 Speaker 1: from Dominoes, and you know, you it might cost you, 155 00:08:43,559 --> 00:08:45,240 Speaker 1: you know, depending on whether you use a coupon, it's 156 00:08:45,240 --> 00:08:48,240 Speaker 1: going to cost you eight, ten, ten, twelve dollars or whatever, 157 00:08:48,400 --> 00:08:50,000 Speaker 1: and you're going to feed a couple of people at 158 00:08:50,000 --> 00:08:52,120 Speaker 1: the very least, And you know, it's a really hard 159 00:08:52,200 --> 00:08:54,160 Speaker 1: to beat that value. That value is a big deal. 160 00:08:54,760 --> 00:09:00,439 Speaker 1: And it's also from a food cost and point. It's 161 00:09:00,520 --> 00:09:06,240 Speaker 1: it's also fairly inexpensive, and um, that enables these companies 162 00:09:06,240 --> 00:09:08,240 Speaker 1: to do these price deals which help them to do 163 00:09:08,320 --> 00:09:11,520 Speaker 1: these values and uh and and that sort of thing. 164 00:09:11,640 --> 00:09:15,040 Speaker 1: So um, it's enabled these large change to build up 165 00:09:15,120 --> 00:09:20,160 Speaker 1: and build these these fairly sophisticated delivery networks, um all 166 00:09:20,200 --> 00:09:24,200 Speaker 1: across the country, whereas they can't necessarily do it with 167 00:09:24,520 --> 00:09:42,520 Speaker 1: with with Chinese food to the same degree. So I 168 00:09:42,559 --> 00:09:45,960 Speaker 1: want to talk a little bit about, you know, how 169 00:09:46,000 --> 00:09:48,200 Speaker 1: the why the model works so well for pizza, but 170 00:09:48,320 --> 00:09:50,840 Speaker 1: it hasn't worked as well for the third party delivery 171 00:09:50,840 --> 00:09:53,280 Speaker 1: companies that still don't make money and the restaurants seem 172 00:09:53,320 --> 00:09:55,440 Speaker 1: to dislike them. But before we get to that, I 173 00:09:55,440 --> 00:09:57,720 Speaker 1: want to just talk about the pizza change themselves. And 174 00:09:57,760 --> 00:10:01,960 Speaker 1: so you mentioned there's three or were big chains that Domino's, 175 00:10:02,520 --> 00:10:07,240 Speaker 1: Pizza Hut, Papa John's, than Little Caesar's. Tell Us, first, 176 00:10:07,280 --> 00:10:10,200 Speaker 1: just think about the history of this. How did we 177 00:10:10,320 --> 00:10:14,319 Speaker 1: sort of get this, uh, this industry in which all 178 00:10:14,360 --> 00:10:20,040 Speaker 1: around the country pizza became this thing that became a chain, 179 00:10:20,120 --> 00:10:22,920 Speaker 1: which we don't really see the same way again with 180 00:10:23,120 --> 00:10:26,160 Speaker 1: Chinese food or other cuisines, but pizza very much became 181 00:10:26,600 --> 00:10:31,280 Speaker 1: chained and franchised and there's a few dominant players. What 182 00:10:31,480 --> 00:10:33,320 Speaker 1: is like, what is the history of that? And then 183 00:10:33,320 --> 00:10:34,800 Speaker 1: I want to you know, then maybe we can get 184 00:10:34,800 --> 00:10:38,319 Speaker 1: a little bit into what Dominoes did h in particular 185 00:10:38,400 --> 00:10:42,840 Speaker 1: that has stood up. It's it's actually more fragmented than 186 00:10:43,200 --> 00:10:46,840 Speaker 1: say fast fast food. Burger is very very consolidated. Their 187 00:10:46,880 --> 00:10:50,040 Speaker 1: only really just a handful of chains or very I mean, 188 00:10:50,080 --> 00:10:53,200 Speaker 1: you just don't go and see like a drive through 189 00:10:53,240 --> 00:10:56,040 Speaker 1: burger counts an independent drive through burger concept for instance. 190 00:10:56,080 --> 00:10:58,920 Speaker 1: Now lately that's changed because all of these burger restaurants 191 00:10:58,920 --> 00:11:01,280 Speaker 1: have popped up, and that's a thing, but you know, 192 00:11:01,360 --> 00:11:06,160 Speaker 1: pieces still a lot more fragmented um. But the the 193 00:11:06,320 --> 00:11:10,440 Speaker 1: history goes back to what if you recall, it started 194 00:11:10,440 --> 00:11:14,000 Speaker 1: out as these restaurants were dying in concepts, So Pizza Hut, 195 00:11:14,040 --> 00:11:18,199 Speaker 1: for instance, was dying in restaurant um. In the sixties, 196 00:11:18,200 --> 00:11:21,680 Speaker 1: you know, Domino's emerged with this idea that you could 197 00:11:22,040 --> 00:11:25,480 Speaker 1: deliver these pizzas directly to people's homes and they would 198 00:11:25,520 --> 00:11:29,920 Speaker 1: call and then you know, so Dominoes really grew a 199 00:11:29,920 --> 00:11:33,080 Speaker 1: lot in the seventies and in the nineteen eighties, and 200 00:11:33,080 --> 00:11:36,600 Speaker 1: then they had this deal where they would deliver the 201 00:11:36,640 --> 00:11:39,680 Speaker 1: pizza within thirty minutes or it was free, and that 202 00:11:39,880 --> 00:11:43,600 Speaker 1: enabled that company to just you know, that enfranchising, which 203 00:11:43,640 --> 00:11:47,760 Speaker 1: it enables companies to grow very quick, really enabled it 204 00:11:47,840 --> 00:11:51,520 Speaker 1: to grow very fast. And then you had competitors such 205 00:11:51,559 --> 00:11:54,640 Speaker 1: as Little Caesar's which is also based in Michigan, like 206 00:11:55,160 --> 00:11:58,720 Speaker 1: like Dominoes and and um, and then later Papa John's 207 00:11:58,760 --> 00:12:03,040 Speaker 1: sort of emerged. Pizza Hut throughout this process sort of 208 00:12:03,080 --> 00:12:08,640 Speaker 1: started converting its entire business model from that wait staff 209 00:12:08,720 --> 00:12:12,360 Speaker 1: din in concept to a delivery model, you know, and 210 00:12:12,360 --> 00:12:15,439 Speaker 1: it's just sort of became commoditized a little bit from 211 00:12:15,440 --> 00:12:18,920 Speaker 1: a chain perspective. So I mean, you know, you might 212 00:12:19,000 --> 00:12:21,959 Speaker 1: have a favorite between Little Caesar's, Pizza Hut, and Dominoes 213 00:12:22,040 --> 00:12:25,880 Speaker 1: or Papa John's, but you know, unbalanced there not terribly 214 00:12:25,880 --> 00:12:29,360 Speaker 1: different from one another. So it's becomes more of a 215 00:12:29,440 --> 00:12:34,400 Speaker 1: price deal, speed, convenience type factors. So these chains have 216 00:12:34,440 --> 00:12:37,720 Speaker 1: been competing. I mean, they've competed for you know, for 217 00:12:37,880 --> 00:12:40,720 Speaker 1: quality and things like that, but on balance, you know, 218 00:12:40,800 --> 00:12:43,880 Speaker 1: there really isn't a whole lot different between them, so 219 00:12:43,920 --> 00:12:47,720 Speaker 1: they've competed based on price. Price. Competition is very fierce 220 00:12:47,960 --> 00:12:51,439 Speaker 1: in that particular market. They have also been more than 221 00:12:51,480 --> 00:12:55,880 Speaker 1: any other industry. They've been pioneers in adding technology to 222 00:12:56,160 --> 00:13:00,000 Speaker 1: their to their restaurants. So they were very early adopters 223 00:13:00,080 --> 00:13:02,840 Speaker 1: of ordering on the web and then of course mobile 224 00:13:03,000 --> 00:13:06,160 Speaker 1: ordering to you know, to eliminate the pain point of 225 00:13:06,240 --> 00:13:10,640 Speaker 1: having to call your pizza delivery restaurant and wait on 226 00:13:10,720 --> 00:13:14,040 Speaker 1: hold for like ten minutes or whatever. That pain point 227 00:13:14,120 --> 00:13:16,880 Speaker 1: is something that they've been able to to reduce over 228 00:13:16,920 --> 00:13:20,600 Speaker 1: the years and compete then on sort of service and 229 00:13:20,679 --> 00:13:23,319 Speaker 1: speed and things of that nature. That's kind of how 230 00:13:23,400 --> 00:13:26,360 Speaker 1: that works. So I have to say, when I was 231 00:13:26,400 --> 00:13:29,480 Speaker 1: growing up, I'm pretty sure I was a Pizza Hut 232 00:13:29,960 --> 00:13:35,040 Speaker 1: to vote. I distinctly remember, yeah, having birthday parties at 233 00:13:35,080 --> 00:13:37,679 Speaker 1: Pizza Hut, and I remember some of the commercials as well. 234 00:13:37,679 --> 00:13:39,680 Speaker 1: We're gonna have to get our producer to insert some 235 00:13:39,800 --> 00:13:43,000 Speaker 1: old like early nine Pizza Hut commercials into this for 236 00:13:43,679 --> 00:13:48,720 Speaker 1: Nostalgiastic again. Hit Pizza Hut for Spring Pizza loaded with 237 00:13:48,760 --> 00:13:52,520 Speaker 1: six delicious topics like mouth watering pepperonis, mushrooms, and green peppers. 238 00:13:52,640 --> 00:13:54,959 Speaker 1: Right now, get a medium spring for seven and any 239 00:13:55,000 --> 00:13:58,920 Speaker 1: other medium for just more bucks more. Yeah, I gotta 240 00:13:58,960 --> 00:14:02,600 Speaker 1: think there's almost nothing Tracy that makes me more nostalgia 241 00:14:02,640 --> 00:14:05,240 Speaker 1: than thinking about like going to pizza hut with my 242 00:14:05,320 --> 00:14:08,760 Speaker 1: family and like those I remember the I think you know, 243 00:14:08,840 --> 00:14:11,720 Speaker 1: the table clause and anyone and everything go on. But 244 00:14:11,760 --> 00:14:14,040 Speaker 1: that is I think we both have a very nostalgic 245 00:14:14,120 --> 00:14:18,079 Speaker 1: experience about pizza huts as a kid, for sure. Um 246 00:14:18,280 --> 00:14:21,080 Speaker 1: oh gosh, really, I'm getting flashbacks to didn't they have 247 00:14:21,160 --> 00:14:26,120 Speaker 1: like a Land Before Time dinosaur puppet promotion at some point? Okay, 248 00:14:26,120 --> 00:14:30,120 Speaker 1: I'm getting really specific. Um, Jonathan, you mentioned the idea 249 00:14:30,240 --> 00:14:34,880 Speaker 1: of um tech fitting neatly into the pizza delivery business model. 250 00:14:35,200 --> 00:14:39,960 Speaker 1: Can you explain how that worked out for Domino's specifically? 251 00:14:40,160 --> 00:14:43,480 Speaker 1: Like what was Domino's edge? Was it the way they 252 00:14:43,520 --> 00:14:46,960 Speaker 1: did business, the way they used technology, or was it, 253 00:14:47,080 --> 00:14:52,200 Speaker 1: you know, God forbid the pizza itself. Um, well, that's 254 00:14:52,200 --> 00:14:55,760 Speaker 1: a that's a really interesting question because you know, the 255 00:14:55,880 --> 00:14:59,920 Speaker 1: entire sector is actually fairly good at us use of technology. 256 00:15:00,080 --> 00:15:03,000 Speaker 1: I mean, Papa John's has had you know, roughly the 257 00:15:03,080 --> 00:15:07,400 Speaker 1: same digital ordering percentages as Dominoes for years. What what 258 00:15:07,480 --> 00:15:12,680 Speaker 1: Domino's does differently, first off is, and this probably does 259 00:15:13,120 --> 00:15:16,800 Speaker 1: does as much to explain why they have succeeded to 260 00:15:16,840 --> 00:15:20,480 Speaker 1: the extent that they have is they roughly around the 261 00:15:20,520 --> 00:15:25,720 Speaker 1: time they went public, they Dominoes required their franchisees to 262 00:15:26,040 --> 00:15:29,440 Speaker 1: adopt the company's own point of sales system. Uh and 263 00:15:29,480 --> 00:15:33,000 Speaker 1: it was actually a controversial step at the time because 264 00:15:33,080 --> 00:15:36,480 Speaker 1: franchise in a franchise world, the franchise ease a lot 265 00:15:36,520 --> 00:15:39,760 Speaker 1: of times when it comes to a technology or some 266 00:15:39,800 --> 00:15:44,360 Speaker 1: construction requirement that they have to spend, they will want 267 00:15:44,960 --> 00:15:49,720 Speaker 1: the company to give them the requirements and then they 268 00:15:49,760 --> 00:15:52,560 Speaker 1: go shop around for a point of sales system. And 269 00:15:52,600 --> 00:15:56,040 Speaker 1: there was there was, in fact, a very large lawsuit 270 00:15:56,160 --> 00:16:00,400 Speaker 1: from some franchise ease against Dominoes over this poss them 271 00:16:00,520 --> 00:16:05,040 Speaker 1: domino Is ultimately one, and then the franchise started converting 272 00:16:05,080 --> 00:16:08,720 Speaker 1: their POLS system to two Domino system. So what what 273 00:16:08,840 --> 00:16:12,880 Speaker 1: that's given the company is the ability to control the 274 00:16:13,040 --> 00:16:16,760 Speaker 1: entire ordering process without having to actually go to another company. 275 00:16:16,800 --> 00:16:21,480 Speaker 1: So if they want to add functionality to their mobile 276 00:16:21,840 --> 00:16:26,400 Speaker 1: or online ordering, they simply can simply do it and 277 00:16:26,520 --> 00:16:29,640 Speaker 1: do it very easy, relatively easily or more easily than 278 00:16:29,680 --> 00:16:32,600 Speaker 1: most companies. So that's enabled them to do things such 279 00:16:32,600 --> 00:16:37,120 Speaker 1: as add ordering on a watch or ordering your pizza 280 00:16:37,120 --> 00:16:40,120 Speaker 1: on a car, or instance, if you want to order 281 00:16:40,200 --> 00:16:43,200 Speaker 1: from a from an Amazon Echo or something like that. 282 00:16:43,320 --> 00:16:46,400 Speaker 1: So that's the probably the biggest thing that they did. 283 00:16:46,840 --> 00:16:49,840 Speaker 1: The other thing is that they marketed it by adding 284 00:16:50,040 --> 00:16:52,800 Speaker 1: all of these cool things such as ordering on a 285 00:16:52,800 --> 00:16:57,240 Speaker 1: car or whatever. They marketed the idea that you know 286 00:16:57,280 --> 00:16:59,840 Speaker 1: that they're ordering process was easy. So one of the 287 00:17:00,000 --> 00:17:04,920 Speaker 1: biggest things they probably did was convinced customers that they 288 00:17:04,920 --> 00:17:07,880 Speaker 1: are more tech savvy than anybody else. They were doing 289 00:17:08,200 --> 00:17:11,119 Speaker 1: double digit comps year upon year. It was kind of 290 00:17:11,160 --> 00:17:14,159 Speaker 1: amazing to see for a while. So Dominoes took a 291 00:17:14,280 --> 00:17:19,560 Speaker 1: risk of potentially alienating or antagonizing some of its franchisees 292 00:17:20,000 --> 00:17:22,920 Speaker 1: by insisting that they all get on this unified point 293 00:17:22,920 --> 00:17:25,960 Speaker 1: of sale platform. When did they do this, When was 294 00:17:26,000 --> 00:17:30,280 Speaker 1: that decision made? And how strategic? Like, you know, obviously 295 00:17:30,320 --> 00:17:34,080 Speaker 1: at the time years ago, they may not have anticipated, uh, 296 00:17:34,119 --> 00:17:36,879 Speaker 1: the existence of an Amazon Echo or ordering on an 297 00:17:36,920 --> 00:17:40,320 Speaker 1: Amazon to Echo, But what what was their strategic thinking 298 00:17:40,600 --> 00:17:43,159 Speaker 1: at the time in terms of what that will what 299 00:17:43,240 --> 00:17:46,240 Speaker 1: that would enable them to do? Well? I think they 300 00:17:46,280 --> 00:17:49,440 Speaker 1: saw the like when they did this, everybody sort of 301 00:17:49,520 --> 00:17:51,800 Speaker 1: knew that the Internet was gonna we were all going 302 00:17:51,840 --> 00:17:53,879 Speaker 1: to be ordering on the Internet. Now, we didn't see 303 00:17:53,960 --> 00:17:57,399 Speaker 1: the idea of of the echo or or anything like that, 304 00:17:57,480 --> 00:17:59,760 Speaker 1: we're ordering on TV or ordering on your car, but 305 00:17:59,760 --> 00:18:01,760 Speaker 1: people had a pretty good idea that we were going 306 00:18:01,800 --> 00:18:04,000 Speaker 1: to be doing a lot more ordering on the internet, 307 00:18:04,480 --> 00:18:07,720 Speaker 1: and that's sort of where they wanted to go, and 308 00:18:07,920 --> 00:18:12,400 Speaker 1: you know, they you know, wanted to to control that process. 309 00:18:12,440 --> 00:18:14,639 Speaker 1: But it was definitely a really big risk and it 310 00:18:14,640 --> 00:18:17,680 Speaker 1: did anger a lot of franchisees at it. It went 311 00:18:17,800 --> 00:18:20,200 Speaker 1: was Dominoes founded, and then when did they sort of 312 00:18:20,240 --> 00:18:24,240 Speaker 1: make this leap? You know, that was I'm not sure 313 00:18:24,440 --> 00:18:26,600 Speaker 1: that the exact year of when they did it, but 314 00:18:26,720 --> 00:18:30,040 Speaker 1: goes back many years and it dates back before there 315 00:18:30,720 --> 00:18:34,360 Speaker 1: before their IPL So this is now many year process 316 00:18:34,440 --> 00:18:37,960 Speaker 1: that it took franchise ease to do. Interesting do you sorry, 317 00:18:38,000 --> 00:18:39,960 Speaker 1: I don't know if you were covering the food industry 318 00:18:39,960 --> 00:18:41,600 Speaker 1: around the time of the I p O, But do 319 00:18:41,680 --> 00:18:46,040 Speaker 1: you remember what the like, what the business narrative or 320 00:18:46,080 --> 00:18:49,679 Speaker 1: the investment story actually was around that time? What was 321 00:18:49,760 --> 00:18:54,160 Speaker 1: Domino's telling investors was the growth story back in two 322 00:18:54,160 --> 00:18:57,159 Speaker 1: thousand four? Well, I mean at the time it was 323 00:18:57,240 --> 00:19:00,720 Speaker 1: sort of you know, between two thousand four and roughly 324 00:19:00,880 --> 00:19:05,680 Speaker 1: two thousand and eight. They were sort of this you know, 325 00:19:05,720 --> 00:19:10,120 Speaker 1: I mean they were just this well established franchise model. Um. 326 00:19:10,160 --> 00:19:13,520 Speaker 1: I think they're most of their growth was in international markets, 327 00:19:13,640 --> 00:19:17,040 Speaker 1: not in the United States. It was largely considered you know, 328 00:19:17,160 --> 00:19:20,159 Speaker 1: an established legacy brand by the time they went public 329 00:19:20,200 --> 00:19:23,720 Speaker 1: in two thousand four, so it's it's not your classic 330 00:19:24,119 --> 00:19:26,240 Speaker 1: I mean, they've been around for decades by the time 331 00:19:26,240 --> 00:19:30,119 Speaker 1: they went public, you know, so they were probably something 332 00:19:30,240 --> 00:19:33,919 Speaker 1: more akin to a Wendy's for instance, where you know, 333 00:19:34,240 --> 00:19:39,160 Speaker 1: Wendy's has a well established international market, but that's where 334 00:19:39,160 --> 00:19:40,920 Speaker 1: it's growth is going to be in the future years, 335 00:19:40,960 --> 00:19:43,480 Speaker 1: but it's in the United States. It's you know, it's 336 00:19:43,520 --> 00:19:47,560 Speaker 1: it's growth is basically was basically behind them. Nobody and 337 00:19:47,640 --> 00:19:50,560 Speaker 1: I would argue Dominoes, nobody saw what what was coming, 338 00:19:52,320 --> 00:19:55,280 Speaker 1: So that that raised an interesting question. So, okay, they 339 00:19:55,760 --> 00:19:59,280 Speaker 1: had made the strategic decision prior to having gone public 340 00:19:59,720 --> 00:20:01,639 Speaker 1: they were going to sort of really build in the 341 00:20:01,680 --> 00:20:04,640 Speaker 1: potential for the use of tech. But at the time 342 00:20:04,680 --> 00:20:07,480 Speaker 1: they went public still they were not being thought of 343 00:20:07,520 --> 00:20:10,080 Speaker 1: really like that. They were just like, you know, sort 344 00:20:10,080 --> 00:20:13,920 Speaker 1: of mature company like a Wendy where it's like, okay, 345 00:20:13,920 --> 00:20:16,159 Speaker 1: it's a business. It makes money, but it's mature and 346 00:20:16,200 --> 00:20:18,000 Speaker 1: it's kind of boring. And so this sort of gets 347 00:20:18,040 --> 00:20:20,840 Speaker 1: us to the crux of what we were talking about earlier, 348 00:20:20,880 --> 00:20:24,159 Speaker 1: which is that yet, despite this perception of them being boring, 349 00:20:24,720 --> 00:20:27,200 Speaker 1: the stock is up about twenty eight fold since the 350 00:20:27,320 --> 00:20:30,520 Speaker 1: type po and really it's almost like matched Google since then, 351 00:20:31,080 --> 00:20:34,480 Speaker 1: tick for tick. When did perceptions of the company start 352 00:20:34,560 --> 00:20:37,679 Speaker 1: to change? When did people start to realize like, Okay, 353 00:20:37,680 --> 00:20:42,800 Speaker 1: there's like they're really executing extremely well, they're growing really well, 354 00:20:43,000 --> 00:20:46,119 Speaker 1: They're just this is an exciting company and not just 355 00:20:46,240 --> 00:20:50,520 Speaker 1: an old line food Jim. Yeah, the big turning point 356 00:20:50,560 --> 00:20:53,760 Speaker 1: for them from a public perception standpoint was when they 357 00:20:53,800 --> 00:20:57,440 Speaker 1: advertised that their old pizza was carible. All right, I 358 00:20:57,520 --> 00:21:00,320 Speaker 1: remember that, Yeah, that is this is one of the 359 00:21:00,359 --> 00:21:03,640 Speaker 1: few restaurant companies where we could really say that there 360 00:21:03,760 --> 00:21:07,800 Speaker 1: was this absolute moment when everything sort of turned for them, 361 00:21:07,840 --> 00:21:11,200 Speaker 1: for them in the public, in the public's eye. And 362 00:21:11,320 --> 00:21:13,600 Speaker 1: you know, that was around the two thousand, two thousand 363 00:21:13,640 --> 00:21:16,520 Speaker 1: and eight, two thousand nine time frame. Going into that 364 00:21:17,200 --> 00:21:20,439 Speaker 1: um and I remember writing at one point wondering whether 365 00:21:20,640 --> 00:21:23,200 Speaker 1: people were getting tired of pizza because all the pizza 366 00:21:23,280 --> 00:21:28,240 Speaker 1: chains were sort of struggling at and including Dominoes. In fact, Domino's, 367 00:21:28,680 --> 00:21:32,240 Speaker 1: uh you know, Domino's had done a securitization around the time, 368 00:21:32,760 --> 00:21:35,320 Speaker 1: and uh you know, so they were heavily in debt 369 00:21:35,400 --> 00:21:38,639 Speaker 1: around at the time of the Layman Brothers collapse, and 370 00:21:38,680 --> 00:21:41,040 Speaker 1: so you know, they were one of those companies that 371 00:21:41,119 --> 00:21:45,600 Speaker 1: you actively wondered would survive over during the recession. But 372 00:21:45,720 --> 00:21:49,960 Speaker 1: what they did was they decided to reformulate their pizza recipe. 373 00:21:50,520 --> 00:21:56,920 Speaker 1: They then advertised that their old pizza was junk then 374 00:21:57,040 --> 00:22:01,320 Speaker 1: and actually had comments from customers on their advertisements that 375 00:22:01,359 --> 00:22:04,480 Speaker 1: their whole pizza was terrible. And then they told people 376 00:22:04,560 --> 00:22:07,400 Speaker 1: that we've got we've got this new recipe, you should 377 00:22:07,440 --> 00:22:10,280 Speaker 1: come and try it to them. That is sort of 378 00:22:10,320 --> 00:22:15,640 Speaker 1: the base of their comeback. That fixing the food and 379 00:22:15,720 --> 00:22:19,040 Speaker 1: making it better and more palatable to the customer base 380 00:22:19,840 --> 00:22:23,960 Speaker 1: was the first step towards towards their actual comeback. So 381 00:22:24,000 --> 00:22:25,760 Speaker 1: that that was sort of the turning point in the 382 00:22:25,760 --> 00:22:31,480 Speaker 1: public's perception. When did they start doing the delivery insurance 383 00:22:31,560 --> 00:22:34,360 Speaker 1: or pizza insurance, Well, I think that was they did 384 00:22:34,400 --> 00:22:39,600 Speaker 1: that last year. Wait, what is that I did pizza? Well, 385 00:22:39,640 --> 00:22:44,560 Speaker 1: they started, they started they offered started offering last year 386 00:22:45,400 --> 00:22:50,320 Speaker 1: where if they if something happens with your delivery delivery order, um, 387 00:22:50,560 --> 00:22:54,040 Speaker 1: you could get you know, something for you could get 388 00:22:54,040 --> 00:22:57,320 Speaker 1: it for free. Um. And then they extended it to 389 00:22:57,359 --> 00:23:00,159 Speaker 1: carry out because that's where they see their growth in 390 00:23:00,160 --> 00:23:02,680 Speaker 1: the future years is with carry out orders. But it's 391 00:23:02,760 --> 00:23:05,440 Speaker 1: a lot of that is just to sort of establish 392 00:23:05,560 --> 00:23:09,480 Speaker 1: their their delivery bona fides against their party delivery. So 393 00:23:10,080 --> 00:23:12,320 Speaker 1: they had that marketing campaign and I remember that now 394 00:23:12,359 --> 00:23:14,600 Speaker 1: that you mentioned it. To take our old pizza is bad, 395 00:23:14,640 --> 00:23:17,960 Speaker 1: the new pizza is good? Is it a lot better? Like? 396 00:23:18,440 --> 00:23:21,120 Speaker 1: I don't I ordered Dominos a couple of weeks ago, 397 00:23:21,160 --> 00:23:23,520 Speaker 1: though it is pretty good, but I remember it being bad. 398 00:23:23,520 --> 00:23:25,560 Speaker 1: But I don't remember. Was there like an agreed upon 399 00:23:25,720 --> 00:23:28,520 Speaker 1: like what did they do differently? How did they actually 400 00:23:28,560 --> 00:23:30,399 Speaker 1: make the pizza better from the old recipe in the 401 00:23:30,400 --> 00:23:33,800 Speaker 1: new recipe? Oh, they their crust is better. I think 402 00:23:33,840 --> 00:23:37,000 Speaker 1: it's it's the crust is a lot more flavorful, if 403 00:23:37,080 --> 00:23:42,159 Speaker 1: I recall correctly. The sauce was also changed. Yeah, you know, 404 00:23:42,200 --> 00:23:44,520 Speaker 1: I do don't remember exactly, but their pizza used to 405 00:23:44,520 --> 00:23:47,320 Speaker 1: be just awful. I mean it, without question, it was 406 00:23:47,400 --> 00:23:49,679 Speaker 1: it was it was just a terrible product that absolutely 407 00:23:49,680 --> 00:23:53,440 Speaker 1: earned the cardboard reputation, and it's definitely a better product, 408 00:23:53,440 --> 00:23:55,800 Speaker 1: and it's it's just a little bit spici. But yeah, 409 00:23:55,840 --> 00:23:57,840 Speaker 1: in two thousand and ten, I'm looking, I'm looking at 410 00:23:57,840 --> 00:24:00,919 Speaker 1: the numbers, and they did fourteen point three percent comps 411 00:24:00,920 --> 00:24:05,320 Speaker 1: in the first quarter of two thou after that was introduced. 412 00:24:05,600 --> 00:24:10,800 Speaker 1: So if we fast forward to now, clearly pizza pizza 413 00:24:10,840 --> 00:24:15,399 Speaker 1: delivery is enjoying a resurgence during the coronavirus shutdown, but 414 00:24:15,520 --> 00:24:20,680 Speaker 1: we've also seen a surge in just food delivery in general. 415 00:24:21,160 --> 00:24:25,920 Speaker 1: How does pizza compete against the third party food delivery 416 00:24:25,920 --> 00:24:32,000 Speaker 1: companies in this environment? Well, first off, on price. So 417 00:24:32,280 --> 00:24:35,240 Speaker 1: one of the challenges I think the long term challenges 418 00:24:35,320 --> 00:24:38,520 Speaker 1: the third party delivery is that it costs you a 419 00:24:38,560 --> 00:24:41,840 Speaker 1: lot of money to get that order. Pizza chains do 420 00:24:41,920 --> 00:24:47,760 Speaker 1: that much more efficiently and they control the process then 421 00:24:48,000 --> 00:24:52,080 Speaker 1: than in a third party situation. So for instance, if 422 00:24:52,160 --> 00:24:55,560 Speaker 1: you order chicken wings, for instance, and you order through 423 00:24:55,600 --> 00:24:59,600 Speaker 1: a third party delivery app, you're probably gonna pay fifty 424 00:24:59,680 --> 00:25:02,719 Speaker 1: six more than if you were to go pick it up. 425 00:25:02,760 --> 00:25:05,879 Speaker 1: For instance, that price is a big deal. Pizza tends 426 00:25:05,920 --> 00:25:09,240 Speaker 1: to you're you're still paying more if you order domino 427 00:25:09,400 --> 00:25:12,080 Speaker 1: is delivered then if you order carry out, but the 428 00:25:12,880 --> 00:25:17,000 Speaker 1: value is still a major, major, major selling point. It's 429 00:25:17,480 --> 00:25:20,600 Speaker 1: one of the quietly one of the biggest reasons why 430 00:25:20,920 --> 00:25:25,280 Speaker 1: pizzas historically so popular. Is it again, it's just fundamentally 431 00:25:25,320 --> 00:25:27,920 Speaker 1: cheap to to to feed your family with it, so 432 00:25:28,440 --> 00:25:30,880 Speaker 1: because they control the process. Like if you think about 433 00:25:31,000 --> 00:25:35,879 Speaker 1: the delivery system in pizza restaurants or Chinese for that matter, 434 00:25:35,960 --> 00:25:39,080 Speaker 1: anybody that does self delivery, or like Jimmy John's, you know, 435 00:25:39,200 --> 00:25:41,760 Speaker 1: you do it from a hubb in spoke model. You 436 00:25:41,840 --> 00:25:46,400 Speaker 1: have your delivery drivers at the restaurant, the people order 437 00:25:46,680 --> 00:25:50,440 Speaker 1: from the restaurant, and then the delivery drivers go out 438 00:25:50,480 --> 00:25:53,440 Speaker 1: to the homes to deliver the food. In a third 439 00:25:53,480 --> 00:25:57,160 Speaker 1: party system, it's just a lot more jumble. You're going 440 00:25:57,320 --> 00:26:00,520 Speaker 1: your people are ordering either from the restaurant on order 441 00:26:00,760 --> 00:26:04,240 Speaker 1: or from the third party delivery app, and then those 442 00:26:04,359 --> 00:26:08,359 Speaker 1: orders go to independent contractors that may be close to 443 00:26:08,400 --> 00:26:11,080 Speaker 1: the restaurant or they may be a couple of miles away, 444 00:26:11,320 --> 00:26:14,040 Speaker 1: and then they're going, so they're all these points they're going. 445 00:26:14,760 --> 00:26:17,520 Speaker 1: It's just a much more jumbled mess, and it's much 446 00:26:17,600 --> 00:26:21,840 Speaker 1: more difficult to do that efficiently, and that's probably a 447 00:26:21,840 --> 00:26:24,320 Speaker 1: bigger reason why third party delivery doesn't make the money 448 00:26:24,359 --> 00:26:28,560 Speaker 1: that say domino stuff. So it's really, in your view, 449 00:26:28,640 --> 00:26:32,280 Speaker 1: it's about that having the people there, having them go 450 00:26:32,359 --> 00:26:35,280 Speaker 1: out the job of pizza come right back, and a 451 00:26:35,400 --> 00:26:39,120 Speaker 1: sort of consistency and the efficiency that you can get 452 00:26:39,160 --> 00:26:42,720 Speaker 1: from having that entire infrastructure just devoted to your restaurant, 453 00:26:43,080 --> 00:26:47,360 Speaker 1: to your product. And the third party entities, the delivery 454 00:26:47,400 --> 00:26:51,679 Speaker 1: companies and you know, rub hubs and door dashes and 455 00:26:51,760 --> 00:26:54,800 Speaker 1: all these other ones, they just can't compete with that 456 00:26:55,240 --> 00:26:59,960 Speaker 1: efficiency in your view. No, so they really can't compete 457 00:27:00,040 --> 00:27:02,520 Speaker 1: from from an efficiency standpoint. And then the other thing 458 00:27:02,600 --> 00:27:07,159 Speaker 1: is that you you know, Domino's controls all of that process. 459 00:27:07,359 --> 00:27:11,520 Speaker 1: So and it's a simple explanation if you order from 460 00:27:11,520 --> 00:27:15,320 Speaker 1: Dominoes and go back to that delivery insurance situation, If 461 00:27:15,480 --> 00:27:19,040 Speaker 1: you order from Dominos or Pizza Hut or Papa John's 462 00:27:19,080 --> 00:27:22,920 Speaker 1: for that matter, and something is wrong with your pizza, 463 00:27:23,240 --> 00:27:26,840 Speaker 1: you can contact Dominoes or Pizza Hut or whatever, and 464 00:27:27,000 --> 00:27:29,240 Speaker 1: you know, you know, Dominoes will get that pizza to 465 00:27:29,280 --> 00:27:32,040 Speaker 1: you for free. You'll get your pizza I ordered. I 466 00:27:32,040 --> 00:27:35,320 Speaker 1: remember I ordered. I wanted pie delivered to my house. 467 00:27:35,359 --> 00:27:40,000 Speaker 1: I was craving pie. It was terrible. And I ordered 468 00:27:40,200 --> 00:27:43,800 Speaker 1: from a family dining restaurant and and we ordered dinner 469 00:27:44,280 --> 00:27:47,480 Speaker 1: and a couple of pies. And we got the order 470 00:27:47,840 --> 00:27:51,639 Speaker 1: and the food came, the pie wasn't there, and so 471 00:27:52,040 --> 00:27:54,840 Speaker 1: I contacted the delivery provider and all I got was 472 00:27:54,880 --> 00:27:56,560 Speaker 1: my money back. I didn't want the money. I want 473 00:27:56,600 --> 00:28:01,400 Speaker 1: to pie. And so I mean, it's so the problem 474 00:28:01,480 --> 00:28:04,840 Speaker 1: to me is that Dominoes can just control that quality 475 00:28:04,880 --> 00:28:07,920 Speaker 1: a lot better than third party delivery can and eventually, 476 00:28:08,320 --> 00:28:10,440 Speaker 1: you know, right now, you have a captive audience sort 477 00:28:10,440 --> 00:28:13,000 Speaker 1: of spee. People are at home and they really want food, 478 00:28:13,040 --> 00:28:15,680 Speaker 1: and delivery is still a fairly safe way to get 479 00:28:15,720 --> 00:28:20,040 Speaker 1: your food in a pandemic. But eventually quality really will 480 00:28:20,080 --> 00:28:21,919 Speaker 1: take over and consumers aren't going to give them a 481 00:28:21,920 --> 00:28:24,920 Speaker 1: break to the extent. And and you know, that's one 482 00:28:25,040 --> 00:28:29,560 Speaker 1: area where third party delivery companies have to fix is 483 00:28:30,160 --> 00:28:47,920 Speaker 1: get that quality down a lot better. Okay, So, given 484 00:28:47,960 --> 00:28:51,920 Speaker 1: that Domino's has this very competitive delivery business where they 485 00:28:51,920 --> 00:28:54,520 Speaker 1: have a lot of efficiencies built into it that allows 486 00:28:54,560 --> 00:28:59,240 Speaker 1: them to compete quite effectively with third party food delivery services. 487 00:29:00,080 --> 00:29:04,080 Speaker 1: Why are they looking at carry out as a potential 488 00:29:04,080 --> 00:29:07,360 Speaker 1: growth area, as you mentioned, because a certain percentage of 489 00:29:07,400 --> 00:29:12,520 Speaker 1: customers hate delivery. M that's basically it. So um, they 490 00:29:12,600 --> 00:29:15,960 Speaker 1: explain it as there is a you know, I mean, 491 00:29:16,040 --> 00:29:18,720 Speaker 1: like I think it's roughly two thirds of consumers are 492 00:29:18,880 --> 00:29:23,840 Speaker 1: perfectly fine having food delivered to to umu to their home. 493 00:29:24,680 --> 00:29:29,120 Speaker 1: But then there's like thirty dish some some substantial percentage 494 00:29:29,480 --> 00:29:35,200 Speaker 1: of consumers that don't like delivery. I'm actually one of 495 00:29:35,200 --> 00:29:37,240 Speaker 1: those consumers. I really don't like having food delivered to 496 00:29:37,280 --> 00:29:38,960 Speaker 1: my home. I would much rather go and control the 497 00:29:39,000 --> 00:29:42,840 Speaker 1: process and go pick it up. Um. Is that is that? 498 00:29:43,040 --> 00:29:45,480 Speaker 1: Is that just like a sense of control thing? Or 499 00:29:45,560 --> 00:29:47,480 Speaker 1: is it you worry that the food is going to 500 00:29:47,600 --> 00:29:50,560 Speaker 1: come in for you're not going to get what you want? 501 00:29:50,640 --> 00:29:53,720 Speaker 1: Or yeah I'm a control freak. Yeah, I'm an admitted 502 00:29:53,760 --> 00:29:57,440 Speaker 1: control I don't like Um, you know, I I can 503 00:29:57,560 --> 00:30:00,280 Speaker 1: go pick it up when I know it's ready, get 504 00:30:00,280 --> 00:30:02,000 Speaker 1: it as hot as I can. I don't have to 505 00:30:02,000 --> 00:30:04,880 Speaker 1: wait for somebody who may or may not get to 506 00:30:04,960 --> 00:30:08,960 Speaker 1: my house is quickly as as they should. And uh. 507 00:30:09,000 --> 00:30:11,240 Speaker 1: And also the fact that like I know I'll get 508 00:30:11,320 --> 00:30:13,160 Speaker 1: I could at least check my bag to see if 509 00:30:13,160 --> 00:30:17,760 Speaker 1: my pies are there. I'm sensing pie is important to 510 00:30:17,800 --> 00:30:21,360 Speaker 1: you if I well, I mean, well, when you want pie, man, 511 00:30:21,400 --> 00:30:26,000 Speaker 1: you have to have pies. And I think the Dominos 512 00:30:26,040 --> 00:30:28,720 Speaker 1: has seen that, you know they, I mean, they're they're 513 00:30:28,840 --> 00:30:33,400 Speaker 1: very data heavy company. They use data for every single 514 00:30:33,440 --> 00:30:35,720 Speaker 1: decision that they have, and so they know that there 515 00:30:35,760 --> 00:30:39,040 Speaker 1: is this percentage of consumers that just do not like delivery, 516 00:30:39,200 --> 00:30:43,120 Speaker 1: and that's the consumer that historically they've never really targeted. 517 00:30:43,560 --> 00:30:47,840 Speaker 1: And in recent years they've just really been pushing for 518 00:30:47,880 --> 00:30:52,000 Speaker 1: that particular group quite a bit, which is sort of 519 00:30:52,040 --> 00:30:55,800 Speaker 1: sustained um. That's helped them sustained growth in the past 520 00:30:55,800 --> 00:30:59,760 Speaker 1: couple of years, as as their delivery businesses offtened while 521 00:31:00,000 --> 00:31:04,520 Speaker 1: all these third party delivery companies started to emerge. Do 522 00:31:04,560 --> 00:31:06,920 Speaker 1: you see any hope for those third party companies? Like 523 00:31:07,080 --> 00:31:10,440 Speaker 1: is there a path in your view to sustainable profitability 524 00:31:10,600 --> 00:31:12,760 Speaker 1: or is there just like do they really need to 525 00:31:12,880 --> 00:31:18,000 Speaker 1: potentially rethink things? I mean, I was on TV talking 526 00:31:18,000 --> 00:31:21,240 Speaker 1: to Jim Chaino's who was very skeptical these companies, like, look, 527 00:31:21,320 --> 00:31:25,160 Speaker 1: they didn't make money during the boom times. Now businesses 528 00:31:25,240 --> 00:31:27,080 Speaker 1: up a lot but they're still not making money. He 529 00:31:27,120 --> 00:31:30,360 Speaker 1: was talking about grubhub in particular. Is there a path here, 530 00:31:30,560 --> 00:31:35,800 Speaker 1: in your view, for that third party model to work well? 531 00:31:35,840 --> 00:31:39,800 Speaker 1: I think people want food. I mean a certain percentage 532 00:31:39,800 --> 00:31:42,680 Speaker 1: of consumers want food delivered to their home and are 533 00:31:42,680 --> 00:31:46,240 Speaker 1: willing to pay for it. And as long as that 534 00:31:46,400 --> 00:31:51,480 Speaker 1: market exists, they'll figure out a way to make it work. Now, 535 00:31:51,520 --> 00:31:54,280 Speaker 1: how that looks remains to be seen. I know that 536 00:31:54,320 --> 00:31:56,600 Speaker 1: there's still a lot of people out there looking at 537 00:31:56,720 --> 00:32:00,000 Speaker 1: delivery and trying to figure out how to make it work, 538 00:32:00,880 --> 00:32:05,480 Speaker 1: whether it's an entirely different model of some sort, whether 539 00:32:05,560 --> 00:32:08,760 Speaker 1: it's a lot of consolidation, and then maybe like rubhub, 540 00:32:08,800 --> 00:32:11,360 Speaker 1: they use it as a loss leader to sort of 541 00:32:11,480 --> 00:32:15,760 Speaker 1: established their overall business. To me, I you know, that's 542 00:32:15,760 --> 00:32:18,360 Speaker 1: that's a really really good question to me. As long 543 00:32:18,400 --> 00:32:20,600 Speaker 1: as that market exists, somebody is going to figure out 544 00:32:20,640 --> 00:32:22,320 Speaker 1: how to do it. You know, there are a lot 545 00:32:22,360 --> 00:32:25,520 Speaker 1: of markets where you can actually get efficiency, you get 546 00:32:25,600 --> 00:32:27,960 Speaker 1: enough efficiency in that market to where it can work. 547 00:32:28,560 --> 00:32:32,239 Speaker 1: New York City is a perfect example because everybody is 548 00:32:32,400 --> 00:32:34,880 Speaker 1: packed in so tightly. That's why it works so well. 549 00:32:34,920 --> 00:32:37,080 Speaker 1: In China, for instance, everybody is packed in so tightly, 550 00:32:37,360 --> 00:32:39,920 Speaker 1: you can do a lot of deliveries and short radius. 551 00:32:40,240 --> 00:32:42,520 Speaker 1: I live in a suburb and it's very difficult to 552 00:32:42,560 --> 00:32:46,760 Speaker 1: do delivery efficiently there. So I think eventually they figure 553 00:32:46,760 --> 00:32:50,080 Speaker 1: it out. It remains to be seen. Could it be 554 00:32:50,240 --> 00:32:55,760 Speaker 1: plausible that more companies, beyond just pizza companies adopt our 555 00:32:55,800 --> 00:32:59,719 Speaker 1: own hub and spoke model, maybe with some infrastructure help 556 00:32:59,760 --> 00:33:04,480 Speaker 1: from a third party company, but have more dedicated drivers, 557 00:33:04,640 --> 00:33:08,800 Speaker 1: dedicated systems on their own. Is data path or does 558 00:33:08,840 --> 00:33:12,680 Speaker 1: that not work for most kinds of a company. I 559 00:33:12,720 --> 00:33:15,440 Speaker 1: think that's that is one route they absolutely could go. 560 00:33:15,760 --> 00:33:17,920 Speaker 1: And then you could see some companies that sort of 561 00:33:17,920 --> 00:33:21,080 Speaker 1: help along along those lines, and that maybe third party 562 00:33:21,080 --> 00:33:24,520 Speaker 1: in delivery players as well. I mean, I think long term, 563 00:33:24,600 --> 00:33:26,960 Speaker 1: ultimately a lot of companies bring this stuff in house. 564 00:33:27,200 --> 00:33:29,560 Speaker 1: You know, we we have seen it with with some 565 00:33:29,560 --> 00:33:33,200 Speaker 1: some chains that have in house delivery in some form 566 00:33:33,280 --> 00:33:35,840 Speaker 1: or fashion. Again, as long as that market is there 567 00:33:35,840 --> 00:33:38,800 Speaker 1: and people wanted, I think that customers, you know, companies 568 00:33:38,800 --> 00:33:40,080 Speaker 1: are going to figure out a way to do it, 569 00:33:40,120 --> 00:33:42,760 Speaker 1: and that very well could be the restaurants themselves. Yeah. 570 00:33:42,960 --> 00:33:46,440 Speaker 1: I think the things that have prevented restaurants from doing 571 00:33:46,480 --> 00:33:50,600 Speaker 1: it is things like insurance and um labor. Labor has 572 00:33:50,640 --> 00:33:54,920 Speaker 1: been a massive barrier towards companies doing their own delivery. 573 00:33:55,000 --> 00:33:58,400 Speaker 1: That's one of the biggest reasons why they haven't done 574 00:33:58,440 --> 00:34:02,040 Speaker 1: that more aggressively, uh than you might have expected, given 575 00:34:02,080 --> 00:34:05,080 Speaker 1: all of the questions with third party delivery and the 576 00:34:05,080 --> 00:34:07,680 Speaker 1: the existence of that market is like companies that have 577 00:34:07,760 --> 00:34:10,640 Speaker 1: tried it, like Burger King and others, really struggled when 578 00:34:10,640 --> 00:34:14,120 Speaker 1: they did it. Um though Panera Bread has their own 579 00:34:14,160 --> 00:34:18,640 Speaker 1: delivery and some others. But I think ultimately, because that 580 00:34:18,680 --> 00:34:21,120 Speaker 1: market is the way it is, I think ultimately you're 581 00:34:21,239 --> 00:34:23,760 Speaker 1: probably going to see a lot more companies doing self delivery. 582 00:34:25,239 --> 00:34:27,640 Speaker 1: So you know, when Joe and I started this episode, 583 00:34:27,760 --> 00:34:32,239 Speaker 1: we mentioned the chart of Google versus Dominoes and how 584 00:34:32,320 --> 00:34:36,560 Speaker 1: they've both performed very similarly since they actually went public. 585 00:34:37,200 --> 00:34:39,440 Speaker 1: When you look at that chart, do you think that 586 00:34:39,560 --> 00:34:43,080 Speaker 1: performance is justified? Do you think Domino's is as good 587 00:34:43,120 --> 00:34:46,160 Speaker 1: a company or as much of a tech company as 588 00:34:46,280 --> 00:34:49,400 Speaker 1: something like Google. Well, I don't think there's much of 589 00:34:49,400 --> 00:34:51,800 Speaker 1: a tech as much of a tech company as Google 590 00:34:51,840 --> 00:34:53,839 Speaker 1: at all. No. I mean, they are definitely a tech 591 00:34:53,880 --> 00:34:57,719 Speaker 1: company without question. Um. They are very technology heavy, but 592 00:34:57,760 --> 00:35:01,080 Speaker 1: their main product is still that pizza, whereas Google their 593 00:35:01,160 --> 00:35:05,600 Speaker 1: main product is you is search and advertising and whatever 594 00:35:05,680 --> 00:35:07,160 Speaker 1: else they they do that I can't think of off 595 00:35:07,200 --> 00:35:09,959 Speaker 1: the top of my head. So no, I mean they're 596 00:35:09,960 --> 00:35:12,279 Speaker 1: not as much of a tech company, but I mean 597 00:35:12,320 --> 00:35:15,120 Speaker 1: they're you know that. You know, the stock movement is 598 00:35:15,160 --> 00:35:17,960 Speaker 1: as justified as as anything else. And it's not like 599 00:35:18,480 --> 00:35:21,160 Speaker 1: Dominoes is going to go away. You know, they were doing. 600 00:35:21,560 --> 00:35:24,000 Speaker 1: Some of the sales growth that they had in the 601 00:35:24,080 --> 00:35:28,239 Speaker 1: last few years have been really incredible, and I mean 602 00:35:28,520 --> 00:35:32,040 Speaker 1: no other company can even come close to what they've done, 603 00:35:32,600 --> 00:35:36,759 Speaker 1: except maybe Chipotle. So you know, their unit volumes are 604 00:35:36,960 --> 00:35:41,760 Speaker 1: much much bigger than their competitors. Um, they rocketed past 605 00:35:41,800 --> 00:35:44,360 Speaker 1: Pizza Hut to be the largest pizza chain in the 606 00:35:44,160 --> 00:35:47,319 Speaker 1: in the country and in the world. Um they still 607 00:35:47,400 --> 00:35:51,000 Speaker 1: have plenty of growth in international markets. They have a 608 00:35:51,239 --> 00:35:54,400 Speaker 1: very high profit franchise model. I mean yeah, I mean, 609 00:35:54,440 --> 00:35:57,040 Speaker 1: there's no real reason why they shouldn't have been they 610 00:35:57,040 --> 00:35:59,279 Speaker 1: shouldn't have gone up as much as it has. It's 611 00:35:59,280 --> 00:36:01,880 Speaker 1: just been sort of incredible to watch, especially given the 612 00:36:01,920 --> 00:36:04,839 Speaker 1: fact that somewhere and then two thousand eight timeframe, we 613 00:36:04,840 --> 00:36:07,720 Speaker 1: were wondering if they were going to go bankrupt. So 614 00:36:08,000 --> 00:36:11,359 Speaker 1: before we go, I mean, put on your future hat 615 00:36:11,600 --> 00:36:14,360 Speaker 1: for futurist hat for a second. We talked about maybe 616 00:36:14,400 --> 00:36:19,000 Speaker 1: different ways that the third party delivery industry could work. 617 00:36:19,040 --> 00:36:22,120 Speaker 1: But from a pizza specific standpoint, or for a Domino's 618 00:36:22,480 --> 00:36:25,800 Speaker 1: specific standpoint, what's the next thing we should be watching 619 00:36:25,880 --> 00:36:30,960 Speaker 1: for in terms of the strategic future of pizza itself. 620 00:36:31,800 --> 00:36:35,000 Speaker 1: I mean, you know, it's hard to see, you know, 621 00:36:35,160 --> 00:36:38,440 Speaker 1: what they can do from a technology standpoint. There's the 622 00:36:38,480 --> 00:36:40,399 Speaker 1: thing that's gonna work is that you're no longer when 623 00:36:40,400 --> 00:36:43,920 Speaker 1: you call a pizza restaurant, you're no longer going to 624 00:36:44,000 --> 00:36:48,320 Speaker 1: talk to a human being. So that's probably the biggest 625 00:36:48,960 --> 00:36:51,520 Speaker 1: change that you'll see down the line. And what about 626 00:36:51,600 --> 00:36:54,160 Speaker 1: driverless card delivery? Is that going to be a big thing? 627 00:36:57,080 --> 00:37:00,319 Speaker 1: I mean as soon as I think they definitely want 628 00:37:00,360 --> 00:37:02,719 Speaker 1: to do it. I mean, Domino's has been working on 629 00:37:02,760 --> 00:37:06,319 Speaker 1: this for for years. You know, they still absolutely play 630 00:37:06,360 --> 00:37:10,200 Speaker 1: around with it. They have robots at their company headquarters 631 00:37:10,239 --> 00:37:12,680 Speaker 1: and things like that. So I mean I think kind 632 00:37:12,680 --> 00:37:15,080 Speaker 1: of like if they're working on a driverless car technology, 633 00:37:15,120 --> 00:37:18,720 Speaker 1: they're kind of more like Google than you let up. Yeah, 634 00:37:18,800 --> 00:37:22,839 Speaker 1: well they work well, maybe they are a little bit 635 00:37:22,840 --> 00:37:24,800 Speaker 1: more like Google than I really went on. But I 636 00:37:24,840 --> 00:37:27,279 Speaker 1: mean they do have but they're working now with uh, 637 00:37:27,680 --> 00:37:31,280 Speaker 1: with a robotics company on on that they've been testing 638 00:37:31,320 --> 00:37:35,920 Speaker 1: these really more robotic driverless cars and um, so you 639 00:37:35,920 --> 00:37:38,120 Speaker 1: could definitely see that. But you're gonna see you know, 640 00:37:38,520 --> 00:37:41,280 Speaker 1: the the you know in the next couple of years, 641 00:37:41,760 --> 00:37:46,080 Speaker 1: you know, these automated voice ordering where the digital orders 642 00:37:46,080 --> 00:37:49,439 Speaker 1: are taken even from from people who old fashioned people 643 00:37:49,440 --> 00:37:53,040 Speaker 1: who call on the phone. Right. Uh, Jonathan may Is, 644 00:37:53,239 --> 00:37:55,759 Speaker 1: that was fantastic. Really enjoyed it. I learned a ton 645 00:37:55,800 --> 00:37:59,600 Speaker 1: about pizza and food and I gotta want your answers 646 00:37:59,640 --> 00:38:01,440 Speaker 1: to question and I've had for a long time, so 647 00:38:01,480 --> 00:38:04,880 Speaker 1: I really appreciate you, Johnny. All right, thank you, Thanks Jonathan, 648 00:38:04,920 --> 00:38:18,200 Speaker 1: Thanks Jonathan Tracy. I've been eating a lot of pizza 649 00:38:18,520 --> 00:38:20,799 Speaker 1: like everyone else during this crisis, and I think I'm 650 00:38:20,800 --> 00:38:24,040 Speaker 1: going to order another pizza because I'm gonna order a 651 00:38:24,080 --> 00:38:26,680 Speaker 1: Domino's too. Nothing like talking about the efficiencies of a 652 00:38:26,719 --> 00:38:30,640 Speaker 1: business model to get the cravings going. But yeah, hubband 653 00:38:30,680 --> 00:38:34,120 Speaker 1: spoke model. Nothing nothing makes me again to be hungrier 654 00:38:34,160 --> 00:38:37,319 Speaker 1: than hearing about the hubband spoke moddle delivery. But you 655 00:38:37,320 --> 00:38:40,000 Speaker 1: know what, I was thinking while we were talking about that, 656 00:38:40,040 --> 00:38:43,080 Speaker 1: I was actually thinking what would happen if Google went 657 00:38:43,120 --> 00:38:45,959 Speaker 1: into the pizza delivery business, Like what if they just said, well, 658 00:38:46,160 --> 00:38:48,400 Speaker 1: we have as much data as anyone, and we do 659 00:38:48,480 --> 00:38:51,080 Speaker 1: tech as good as anyone else, and the pizza is 660 00:38:51,160 --> 00:38:54,040 Speaker 1: kind of an afterthought in this business model. It feels like, 661 00:38:54,800 --> 00:38:57,879 Speaker 1: well except as you pointed out that domino has really 662 00:38:57,880 --> 00:39:00,360 Speaker 1: turned it around when they made the pizza itself better, 663 00:39:00,400 --> 00:39:03,040 Speaker 1: so at least Google would have to execute on the product. True, 664 00:39:03,400 --> 00:39:06,320 Speaker 1: or they came up with a very good marketing campaign 665 00:39:06,440 --> 00:39:09,680 Speaker 1: that worked for them. It's crazy, by the way, Tracy, 666 00:39:09,760 --> 00:39:11,800 Speaker 1: you should come back just because, like I ordered Dominoes 667 00:39:11,840 --> 00:39:13,800 Speaker 1: the other day, and I guess I should ask Jonathan 668 00:39:13,800 --> 00:39:15,680 Speaker 1: about this, But like what they do with crust, like 669 00:39:15,719 --> 00:39:22,200 Speaker 1: they're in order like Brooklyn thin crust, thin crust, Like 670 00:39:22,400 --> 00:39:25,080 Speaker 1: there's like there's literally like twelve different crush they have. 671 00:39:25,239 --> 00:39:27,880 Speaker 1: Like if pizza is getting so advanced, that sounds amazing. 672 00:39:27,920 --> 00:39:30,920 Speaker 1: I think the last time I ordered pizza from Dominoes, 673 00:39:30,960 --> 00:39:34,520 Speaker 1: there were still only two options, which were thin and 674 00:39:34,600 --> 00:39:37,279 Speaker 1: thick crust. That was pretty much it. I miss it. 675 00:39:37,400 --> 00:39:41,600 Speaker 1: I would come back. You gotta come back, just for this. Yeah, wait, 676 00:39:41,960 --> 00:39:47,320 Speaker 1: do you order Dominoes when you're in New York? I'm 677 00:39:47,320 --> 00:39:50,200 Speaker 1: going to, but I might start I feel if when 678 00:39:50,239 --> 00:39:53,320 Speaker 1: I'm in the city, I do feel bad about ordering dominos, 679 00:39:53,320 --> 00:39:55,440 Speaker 1: But maybe I'll start. It's really good. Maybe you'll be 680 00:39:55,520 --> 00:39:57,960 Speaker 1: so attempted by the efficiencies of the Hubb and Spoke 681 00:39:58,000 --> 00:40:02,160 Speaker 1: model that you'll have to. But yeah, a fascinating conversation, 682 00:40:02,480 --> 00:40:07,920 Speaker 1: something that really like brings a current business trend into focus, 683 00:40:08,120 --> 00:40:11,320 Speaker 1: I think. And I wasn't aware that pizza had become 684 00:40:11,960 --> 00:40:15,040 Speaker 1: such a massive thing during the coronavirus shutdown. But Jonathan 685 00:40:15,080 --> 00:40:16,960 Speaker 1: did a really good did a really good job of 686 00:40:17,000 --> 00:40:19,799 Speaker 1: explaining why he's great. All right, should we leave it there? Yep, 687 00:40:20,080 --> 00:40:22,880 Speaker 1: let's do it. This has been another episode of the 688 00:40:22,920 --> 00:40:25,799 Speaker 1: All Thoughts podcast. I'm Tracy Alloway. You can follow me 689 00:40:25,960 --> 00:40:29,480 Speaker 1: on Twitter at Tracy Alloway, and I'm Joe Wisenthal. You 690 00:40:29,480 --> 00:40:32,360 Speaker 1: can follow me at The Stalwart. And you should follow 691 00:40:32,360 --> 00:40:36,240 Speaker 1: our guest on Twitter, Jonathan May's He's at Jonathan Mays. 692 00:40:36,600 --> 00:40:39,720 Speaker 1: Be sure to follow our producer Laura Carlson at Laura 693 00:40:39,800 --> 00:40:43,359 Speaker 1: and Carlson. Follow the Bloomberg head of podcast, Francesca Levi 694 00:40:43,560 --> 00:40:47,480 Speaker 1: at Francesco Today and check out all of the Bloomberg 695 00:40:47,520 --> 00:41:07,640 Speaker 1: podcasts under the handle at podcasts. Thanks for listening to