The ups and downs of Tom Monaghan and Domino’s Pizza

A short while, after Tom has established his business in 1960, Tom’s three pizza shops was the most crowded in the town with production of 5000 pieces of the pizza.

Shortly, Domino’s pizza stores reached 44 store but this number was very unlucky in the history of the successful entrepreneur. Tom noticed that he has a huge number of workers, and less work to do because the new stores were not near by the dorms like the previous ones.

Late at the sixties, almost 51% of the business is owned to the commercial banks in form of debts. It was a crisis in the history of Domino’s pizza that was about to cause bankrupt of the organization.

Tom was forced by these commercial banks to give the administration of his business to an administrative expert hired by them. The administrative expert leaded things from bad to worse by increasing the price of the pizza, decreasing the services, and chooses the cheap ingredients for the pizza.

Only ten months later, the agents started to sue Tom due to the expensive price, forcing them to buy everything from his company based on the agreements, and the poor quality of pizza. Which at the end persuaded the banks to give the administration of Domino’s back to Tom.

Although it was a good point, there were more than 1000 creditor , and 150 of them already filed a lawsuit. This issue caused Tom to work hard for nearly two years, and many times Tom used to persuade the creditor to extend the due date of the debt, and defends in the court by himself because he cannot afford to pay for lawyers.

Because Tom was very confident of himself and his abilities of crisis management, he solved all these problems in a few years and he got his position back. Gradually the customers came back to consume their beloved food in Domino’s pizza restaurants which gained a lot of trust again and the number of stores increased dramatically to reach 300 store very shortly.

In 1980, Domino’s pizza has its first overseas store in Canada  and by 1983 Tom owned more than 1100 store in all over the world.