We recently prepared a comprehensive report of the 15 Fastest-Growing Fast-Food Chains in the US. The methodology we employed was relative growth of the number of units opened by these fast-food chains in 2022 from 2021. Let’s dive deep into Domino’s and see if it is the Fastest Growing Fast-Food Chain in the US.
Domino’s Pizza, Inc. (NYSE:DPZ)
Units opened in 2022: 126
Domino’s Pizza, Inc. (NYSE:DPZ), an American pizza restaurant chain with a global presence, is one of the largest Pizza chains in the U.S., according to an Insider Monkey article. Established in 1960, it is the second oldest pizza chain in the country, after Pizza Hut, which came into existence in 1958.
Domino’s sits in an industry marked by growing popularity, and innovation, wherein the consumers have shifted towards options of vegan, low-calorie, and gluten-free pizza, while opting for the digital means the most, as far as mode of consumption is concerned. As such, the global pizza industry is set to climb up at a rate of 4.45% CAGR during the 2024-2032 period, growing from $148.6 billion in 2023 to $222.5 billion by 2032, per IMARC Group.
One notable example of Domino’s pioneering approach is the introduction of the “30 minutes or its free” guarantee in the 1970s, which revolutionized the food delivery experience, while also boasting a staggering 34 million number of possible pizza combinations in their menu!
In contrast, in the U.S., the total sales of pizza restaurants hit a staggering $46 billion mark in 2021, while north American region is expected to account for roughly about 50% of the future growth in the global pizza industry. The American industry has already experienced substantial growth, as it saw 7,000 units of pizza operators opening in the last 8 years, hitting a whopping 80,000 units, as of 2022! Furthermore, the business of pizza chains was far above the independent pizza operators, as the differential between both segments’ revenue is 7 billion, according to the Insider Monkey article on highest-quality pizza chains mentioned above. Furthermore, according to a survey, 21% of respondents regarded pizza as their favorite food, justifying Domino’s growing success in the industry, due to its long-lasting reputation in the country that has been kept intact since several decades.
There are a total of 6,906 Domino’s locations across the United States, with Texas holding the largest share of about 11%, with 740 Domino’s outlets. California and Florida are the next two states with the largest shares of 9% and 7%, respectively. Texas, California and Florida, with population figures of 30.5 million, 38.9 million, and 22.6 million, respectively, showcases Domino’s popularity and success, as these 3 states are the most populous ones, according to United States Consensus Bureau.
In terms of market size of Domino’s, it sits at the sweet spot of number 1, in the context of U.S. systemwide sales and average sales per unit in 2022, which were $8.8 billion and $1.3 million, respectively, according to QSR 50. The next two successful pizza chains in 2022 were Pizza Hut and Papa John’s, which recorded U.S. systemwide sales of $5.5 billion and $3.7 billion, respectively. 126 Domino’s units were opened in 2022, which was the highest by any Pizza chain in the U.S.; following Domino’s in 2022, in the context of units opened, was Marco’s Pizza, which opened 65 units.
Competing with a tally of 70,000 pizza restaurants in the country, Domino’s is facing quite a competition currently; as such, Domino’s is one of the fastest-growing fast-food chains in the US, but not the fastest. It has 11 other fast-food chains leading it in growth of the number of units.
To find out which chain is the fastest-growing in the US, you can visit our full list here at 15 Fastest-Growing Fast-Food Chains in the US.
Disclosure: none.