撮要

DPC Dash Ltd. (DPC Dash) (达势股份有限公司) (SEHK: 1405) was the exclusive master franchisee for Domino’s Pizza in mainland China, Hong Kong, and Macau. In 2010, Frank Krasovec cofounded DPC Dash and secured multiple rounds of funding from private equities and investors, including Domino’s Pizza, Inc. (NYSE: DPZ) in the US. Krasovec, an experienced entrepreneur, served as the chairman, non-executive director, and member of different committees of the company. The daily management of the company, also known as Domino’s Pizza China, was led by the company’s sole executive director and CEO, Aileen Wang.

In 2017, DPC Dash quickly expanded from 100 stores, which included delivery stores and dine-in restaurants, after recruiting a new team of management, including Wang. It emphasized food quality, a creative menu, reliable delivery, and value for money, by using technology, a centralized kitchen, and a streamlined supply chain to improve efficiency. On 28 March 2023, it went public by listing on the Stock Exchange of Hong Kong.  DPC Dash was the fastest growing among China’s top-five pizza brands and also the third-largest in terms of revenue in FY2022, according to a report by Frost & Sullivan in March 2023. By 31 January 2024, DPC Dash operated 800 stores across 29 cities in China.

While the palates of mainland Chinese were adjusting to Western cuisine, American fast-food chains needed to localize and adapt their menus creatively. In the mainland Chinese market, a few US fast-food chains dominated, including McDonald's, Starbucks, and Yum China Holdings, Inc. (NYSE: YUMC) (SEHK: 9987), a spinoff of the Yum! Brands Inc. (NYSE: YUM) in the US, which owned Pizza Hut, KFC, and other franchises. How could Krasovec, Wang, and their team successfully position Domino’s Pizza China as a strong competitor to Pizza Hut, mirroring the accomplishments of other franchisees in China?

學習目標

After analyzing the case, students will be able to:

1. Learn about a franchisee of a global fast-food chain and its willingness to experiment, continuously update products, and expand business to increase market share.
2. Gain insights from the leaders of this franchise in exploring product development, branding, and selecting store locations in the mainland market.
3. Learn about a successful and experienced entrepreneur who has continuously founded and cofounded multiple companies in different industries and taken them public.
4. Understand the dynamics of how the board of directors operates and interacts with the CEO and management team, as it entrusts them with the responsibility of overseeing daily operations.