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Pizza Delivery Company Reviewing Advertising Contract

February 15, 1991

ANN ARBOR, Mich. (AP) _ Domino’s Pizza, which faces a challenge from Pizza Hut in the food delivery business, said it is reviewing its advertising contract.

Domino’s President P. David Black said earlier this week that a review of the company’s advertising agency, Group 243 of Ann Arbor Township, is under way.

Domino’s has more than 5,300 stores in the United States, but added just 218 last year, its lowest in seven years.

The pizza delivery company reported $5.4 million in profit last year, up 50 percent from 1989, stemming mainly from cost-cutting and layoffs. Overseas expansion has stalled.

Black said the company is dumping its strategy of sending Americans overseas to open stores, preferring instead to sell franchises to local businesspeople.

Milford Prewitt, senior editor for Nation’s Restaurant News, a New York- based trade magazine, said Domino’s still had low costs. But Prewitt said Pizza Hut ″has a rich parent, greater resources and is moving in. Domino’s (slowing growth) numbers may be reflecting that.″

Domino’s controls about half of the pizza delivery market, compared to about 10 percent for Pizza Hut.

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