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Domino's Pizza YouTube Crisis of 2009

By Brittany Dumond
by

Brittany Dumond

on 20 April 2011

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Transcript of Domino's Pizza YouTube Crisis of 2009

Domino's Pizza YouTube Crisis of 2009 By: Brittany Dumond Background Information The original name was "DomiNick's Pizza
In 1960, brothers Tom and James Monaghan bought the restaurant for $500
A year later, Tom traded his brother a Volkswagon Beetle for his half of the company and renamed it "Domino's"
Delivers the most pizza in the world
Domino's delivered 400 million pizzas last year, which is a pizza (and a slice) for every man, woman and child in the United States This multimillion dollar company's reputation of great food and service was single handedly tainted by... A Look Into the Crisis On April 13, 2009 a video was posted on the popular social media website YouTube displaying Domino's employee 31 year old Kristy Hammonds filming her coworker 32 Michael Setzer doing disgusting things to the food
The restaurant was located in Conover, NC
After just 2 days on YouTube, the video reached over 1 million views. Domino's Fights Back Immediately fired both of the workers
The restaurant was closed down immediately for sanitation
It took Domino's 2 or 3 days you respond to the video
President of the company Patrick Doyle posted a response on YouTube telling the public that the actions of the two individuals do not represent the entire company
Domino's also created a Twitter account to answer questions from concerned consumers and posted a company appology on their website Hammonds
and Setzer claim that
the video was a prank and
the food was never distributed. Immediately after the incident they were arrested and tried for felony distribution of prohibited food Type of Crisis Stakeholders Analysis of Response How did this effect Domino's? Malevolence: when some outside opponent employs extreme tactics to attack the organization, such as product tampering
Rumors: when false or misleading info is purposefully circulated about an organization or its products in order to harm the organization Domino's Pizza comsumers
All Domino's employees
The other workers at the Domino's in Conover, NC
People who hold stocks in Domino's Pizza During the first quarter of 2009, Domino's sales reached $23.8 million
In the second quarter, sales dropped dramatically to $14.5 million
Sales did not recover until the end of the fourth quarter when the jumped back up to $23.6 million
The Conover store was closed and had to dispose of all open containers, costing the company hundreds of dollars Although Domino's took days to respond to the crisis, most experts agree that they handled the situation correctly
They never sent out a formal press release, which may have taken away from their credibility
The company was able to bounce back, which shows that their response was handled correctly Domino's Pizza Today Today Domino's is back to having the reputation of the highest delivered pizza in the world.
The "new and inspired" pizza recipe was introduced shortly after the crisis, which also helped to increase sales

What Happened to Hammonds and Setzer? Both of the employees lost their jobs with Domino's
Setzer was sentenced to 24 months of supervised probation
Hammonds was sentenced to 18 months probation
Full transcript