ANN ARBOR, Mich. — In the test kitchen at the corporate headquarters for Domino's Pizza Inc., a chef dressed in a starched white coat was going through the familiar motions: Sauce on crust, cheese on sauce, pepperoni on cheese, then bake.
But this pizza's different, as it has been in Domino's stores across the U.S. since late December. The 9,000-unit chain took a big chance, not only reformulating its signature product for the American market but also disparaging its long-standing recipe in a straight-talk marketing campaign.
The old crust? "Cardboard," the company admitted in its ads. The old sauce? "Ketchup." The staff? Weary of customers trashing the food.
The risk paid off. Despite rumblings in the marketing world about another New Coke-style flop in the making, sales at domestic stores open more than a year soared 14.3 percent in the first full quarter after the new recipe debuted. Domino's marketing push helped lift the pizza market as a whole, and the halo effect appears to be continuing into the summer.
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