Domino’s to Test AI-Driven Innovations in Operations

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Domino’s Pizza, the global pizza giant, has unveiled an exciting partnership with tech titan Microsoft to harness the power of generative AI and cloud computing. This groundbreaking collaboration will make use of Microsoft Cloud and Azure OpenAI Service to elevate the customer journey by making pizza ordering more personalized and straightforward. Domino’s has already been utilizing Microsoft as its primary cloud provider for experimenting with data and AI capabilities to streamline its in-store operations.


The current project, aimed at modernizing Domino’s store systems, marks the initial stages of creating a generative AI assistant, fueled by Azure OpenAI Service. This AI assistant is poised to assist store managers in optimizing daily tasks, including inventory management, ingredient procurement, and staff scheduling. The ultimate objective is to empower store managers to dedicate more time to enhancing the experiences of their team members and customers alike.


Kelly Garcia, Domino’s Executive Vice President and Chief Technology Officer, expressed enthusiasm for the partnership, anticipating its potential to provide millions of customers with consistently engaging ordering experiences while streamlining store operations. As part of this strategic alliance, Domino’s and Microsoft have outlined plans to establish an Innovation Lab, bringing together top leaders and world-class engineers from both companies. The primary goal is to expedite the development of cutting-edge solutions for smart stores and innovative ordering processes. It’s important to note that both entities are dedicated to responsible AI practices, prioritizing the protection of customer data and privacy throughout their collaboration.


The AI technology in play will encompass a blend of proprietary and non-proprietary solutions in partnership with tech giant Microsoft. Of particular note is Domino’s significant investment in AI capabilities that will revolutionize back-of-house operations. This cutting-edge technology will empower employees to streamline crucial decision-making processes, including labor scheduling, inventory management, and day-to-day operations management, resulting in more efficient and effective store operations.


Despite facing multifaceted challenges, such as the ongoing struggle to secure drivers, Domino’s unwaveringly maintains its commitment to first-party order fulfillment. The company has encountered a shift as customers opt for Domino’s carryout over non-Domino’s options due to inflationary pressures. This shift, however, has contributed to a surge in U.S. same-store sales, driven by a notable increase in the average ticket size, thanks to a 6.2 percent pricing adjustment. In 2022, Domino’s achieved remarkable global retail sales exceeding $17.5 billion, with a substantial share of over $8.7 billion generated within the United States and nearly $8.8 billion internationally.

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