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The passage discusses how Tom Monaghan built Domino's Pizza into a global franchise by focusing on fast delivery and establishing standardized practices across locations.

Tom Monaghan started his first pizza shop, DomiNick's Pizza, in 1960 after returning from serving in the Marines. He later renamed it Domino's Pizza and focused on fast delivery.

Domino's Pizza emphasized fast delivery within 30 minutes and established practices like using pizza bags and boxes that helped maintain quality during transport. They also grew through franchising locations globally.

Sheila Griffin Llanas

Food Dudes
Tom Monaghan:
Domino’s Pizza Innovator

Sheila Griffin Llanas

An Imprint of Abdo Publishing


www.abdopublishing.com
Tom Monaghan: Domino’s Pizza Innovator

www.abdopublishing.com

Published by Abdo Publishing, a division of ABDO, PO Box 398166, Minneapolis, Minnesota


55439. Copyright © 2015 by Abdo Consulting Group, Inc. International copyrights reserved in all
countries. No part of this book may be reproduced in any form without written permission from
the publisher. Checkerboard Library™ is a trademark and logo of Abdo Publishing.

Printed in the United States of America, North Mankato, Minnesota.


052014
092014

Cover Photos: Corbis


Interior Photos: AP Images pp. 8, 19, 25, 27; Corbis p. 1; Getty Images pp. 5, 10, 11, 13, 15, 23, 24;
Glow Images p. 9; iStockphoto pp. 7, 17, 21, 26

Series Coordinator: Megan M. Gunderson


Editors: Grace Hansen, Bridget O’Brien
Art Direction: Neil Klinepier

Library of Congress Cataloging-in-Publication Data

Llanas, Sheila Griffin, 1958-


Tom Monaghan : Domino’s Pizza innovator / Sheila Griffin Llanas.
p. cm. -- (Food dudes)
Audience: Grade 8-12.
ISBN 978-1-62403-316-2
1. Monaghan, Tom, 1937---Juvenile literature. 2. Domino’s Pizza (Firm)--Juvenile literature. 3.
Restaurateurs--United States--Biography--Juvenile literature. 4. Businessmen--United States--
Biography--Juvenile literature. I. Title.
TX910.5.M59L53 2015
647.95092--dc23
[B]
2014006825

2
Contents
Tom Monaghan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Tough Childhood . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
The Marines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
The Pizza Biz . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
A Low Point . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Pizza Principles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
A New Name . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
The Pizza Hustle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
All About Delivery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Pizza in 30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Success at Last . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Domino’s Today . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Timeline . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Pizza Popularity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Glossary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
Websites . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32

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Tom Monaghan: Domino’s Pizza Innovator

Tom Monaghan
Today, pizza delivery is common. Call the shop and place an
order. Wait for a hot pizza to arrive at your home. In the 1960s,
delivery was not nearly as common. That’s when Tom Monaghan
started Domino’s Pizza. He built his company on his delivery promise,
hot and fresh in 30 minutes.
After that, delivery became the pizza standard. Today, 58,000 of
the nation’s 70,000 pizzerias offer delivery. Monaghan helped change
the food industry. In doing so, he turned his life into a major success.
Thomas Stephen Monaghan was born on March 25, 1937, just
outside Ann Arbor, Michigan. He had a younger brother, Jim. Their
father, Francis, was a truck driver. Their mother, Anna, was a nurse’s
aide. The four of them had a happy family life. Then on Christmas Eve
1941, Tom’s father died of peritonitis. Tom was only four years old.
Tom’s mother could not support her children alone. She earned
just $27.50 a week. So, she sent her sons to foster homes and then St.
Joseph’s Home for Boys, a Catholic orphanage. Tom hated the place!
It wasn’t fair. He was a good kid with bad luck. Back then, he began to
dream of a better life.

4
Tom Monaghan’s big dreams
helped him through tough times.

5
Tom Monaghan: Domino’s Pizza Innovator

Tough Childhood
Tom was a quick thinker and a good athlete. At first, he did
well in the orphanage. One teacher, Sister Berarda, asked students
about their future goals. Tom said he wanted to be a priest, an
architect, and a shortstop for the Detroit Tigers baseball team. His
classmates laughed. The teacher did not. She said Tom could be
whatever he wanted to be. Under her care, Tom’s grades were high.
In third grade, Sister Berarda’s replacement was very different.
She whipped children for the smallest errors. Tom’s grades dropped.
He began to fail.
Tom spent six and a half awful years at St. Joseph’s. Then, he
lived with his mother in Traverse City, Michigan. To help her with
money, he picked cherries and sold newspapers, vegetables, and
fish. Tom tried hard, but he and his mother argued. She said she
could not control him.
Tom returned to the foster care system. In ninth grade, he lived
with the Crouch family. He loved them and was happy to help on
their farm. He also began to pursue new interests. In particular, he
admired the work of famous architect Frank Lloyd Wright.

6
The next year, Tom attended a seminary in Grand Rapids,
Michigan, to become a priest. He was kicked out for bad behavior,
and his dream of being a priest was shattered. He returned to living
with his mother, but again this did not go well. He was sent to a
detention home. At the end of eleventh grade, Tom went to live
with his aunt and uncle in Ann Arbor.

Traverse City is in the northern


part of Michigan’s Lower Peninsula.

7
Tom Monaghan: Domino’s Pizza Innovator

The Marines
While living with his family, Tom attended St. Thomas High
School in Ann Arbor. Tom did not focus on school. He graduated in
1955 only after begging not to be held back. He finished last out of
44 students.
Next, Tom tried college. He attended Ferris State College in Big
Rapids, Michigan, for one quarter. There, he achieved good grades.
Then, he was accepted at the University of Michigan to study
architecture. Yet without
enough money for tuition,
he gave up his dream of
earning a degree.
In 1956, Tom joined
the US Marine Corps.
Boot camp was grueling!
He learned some tough
lessons. He got in top
shape, both physically
Ferris State College became
Ferris State University in 1987.

8
The Imperial Hotel was torn down in 1968.

and mentally. Tom boarded a ship and crossed the Pacific Ocean to his
assignment. All of his spare time went toward self-improvement.
Stationed in Okinawa, Japan, Tom read books on business. While
on guard duty, he gazed at the majestic Mount Fuji. He traveled to
Tokyo to visit the Imperial Hotel. It was designed by his idol Frank
Lloyd Wright. Being a marine was an excellent choice for Tom. The
experience boosted his confidence and his sense of self-worth. He
vowed to someday find success and make his dreams come true.

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Tom Monaghan: Domino’s Pizza Innovator

The Pizza Biz


Monaghan left the military in 1959. He returned to Ann Arbor,
planning to give college another try. Meanwhile, he managed a
crew of newspaper deliverers. With this job, he learned a little about
business. He also sold subscriptions for the Sunday New York Times.
Delivering them himself, he earned an extra $25 a week. He worked
hard and was able to buy a corner newsstand downtown.
As hard as he
worked, Monaghan
could not save for
tuition. College seemed
impossible. At 23 years
old, Monaghan worried
his life was going
nowhere. Then one day,
his brother, Jim, told
him about a pizzeria in
Ypsilanti, Michigan. It
When Monaghan entered the pizza industry, he hoped to
run a successful business and earn money for college.

10
was called DomiNick’s Pizza, and it was for sale. The Monaghan
boys borrowed $900. They bought the small place in 1960.
Monaghan quit his newspaper job. He had no degree and little
business experience. He knew nothing about pizza. The previous
owner gave him a 15-minute lesson in pizza-making. That was his
only training! On December 9, the brothers opened the shop. That
night, Monaghan entered the pizza industry.
Monaghan (second from right) in his early days in the pizza business.

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Tom Monaghan: Domino’s Pizza Innovator

A Low Point
At their pizzeria, the Monaghan brothers shared the work. Yet
profits were low. In their first week, they earned just $99. Then after
eight months, Jim quit! Monaghan traded the Volkswagen Beetle
they used for deliveries for Jim’s share of the business. He became
the sole owner of DomiNick’s in 1961. From then on, Monaghan
committed himself fully to pizza.
Monaghan worked day and night, seven days a week. To his
surprise, he loved rolling pizza dough. It was rewarding to make
delicious tomato sauce. He tried his competitors’ pizza to see how
he could improve his own. And, he worked hard to make the whole
process faster. Yet he had one big problem. His profits remained
low and debts were piling up.
During one busy night, Monaghan almost gave up. Several
employees were absent. Monaghan feared a small crew could not
handle the work. Failure seemed certain. He saw only one option,
which was to close down the pizza place. Then, an employee
suggested a perfect solution.

12
From the beginning, Monaghan focused
on making pizza better and faster.

13
Tom Monaghan: Domino’s Pizza Innovator

Pizza Principles
On that miserable night, Monaghan made a drastic move. At
the time, DomiNick’s offered pizza in five sizes. The smallest and
most popular was the six-inch pie. It took effort to provide so many
choices for customers. Small pizzas took as long to make as large
pies. But they cost less. DomiNick’s lost money on the smaller size.
With nothing to lose, Monaghan dropped six-inch pizzas from his
menu. A few customers complained. But then, they simply chose to
pay more for a larger pie! That night, an amazing thing happened.
Monaghan’s smaller staff filled every pizza order and never fell
behind. The operation ran smoothly. Best of all, they made more
money than ever, all because they dropped one item from the menu.
Everything changed. Just like that, DomiNick’s earned a profit.
The next night, Monaghan dropped nine-inch pizzas from the menu.
Again, he was amazed. The simpler menu was more profitable.
Customers were just as happy. Monaghan had learned an invaluable
business lesson. His luck began to change. He was far from rich, but
at least he could pay the bills.

14
Monaghan first tried pizza
in high school. At the
time, he didn’t care for it!

15
Tom Monaghan: Domino’s Pizza Innovator

A New Name
Based on the menu change, Monaghan created a vision of
service. He sold only pizza and nothing else. He offered takeout or
delivery with little sit-down service.
DomiNick’s had a great location. It was near a college campus.
When hunger hit, students wanted food fast! In 1965, Monaghan set
a new goal to deliver every order within 30 minutes.
While delivering a pizza to a college campus one night,
Monaghan met Marjorie Zybach. On August 25, 1962, they married.
At the time, Monaghan was making $102 a week. The couple moved
into a cozy, modest trailer home. The Monaghans went on to have
four daughters. Mary was born in 1963, followed by Susie in 1965
and Maggie in 1969. The youngest, Barbara, was born in 1972.
Meanwhile, Monaghan expanded his business to include more
locations. In Ypsilanti, he had a store called Pizza King. In Ann
Arbor, another college town, he owned Pizza from the Prop.

16
The new Domino’s logo had three white dots to represent the
three stores Monaghan was running at the time.

Monaghan had never owned rights to the name DomiNick’s. So


eventually the former owner, Dominick DiVarti, insisted he change
it. In 1965, Monaghan settled on Domino’s. He loved the Italian
sound. A red domino game piece became his new logo. He hoped
to add an extra dot for each new store. He had no idea how many
locations he would eventually have!

17
Tom Monaghan: Domino’s Pizza Innovator

The Pizza Hustle


Monaghan’s business was doing well. Each of his new stores
sold about 3,000 pizzas a week. And Monaghan was working
harder than ever. He hustled from ten each morning to four the
next morning! He took off just three days a year, Thanksgiving,
Christmas, and Easter.
Monaghan became a strict boss. Employees had to show
up on time and work hard. In return, they were treated well.
Monaghan thought of them as family. In fact, he was best man in
the weddings of some of his employees.
Monaghan continued seeking ways to save time. To improve
efficiency, he bought new machines to grate and mix the cheese and
make dough. He invested in special boxes to store the dough.
Speed was one key to success, but flavor was another.
Monaghan conducted undercover street interviews. He asked
people where he could find good pizza and whether Domino’s was
any good. He listened to both positive and negative comments
from these secret taste tests. He used their feedback to improve the
quality of his food.

18
Monaghan was busy, but he still had passions outside of pizza. One
of them was baseball. In 1968, his beloved Detroit Tigers won the World
Series. When the team flew home, fans planned to greet them at the
airport. Monaghan decided to surprise the team with Domino’s pizzas.
On the drive, he and his employees got stuck in a traffic jam! So,
they ran from car to car, selling 100 hot pizzas to Tigers fans stalled in
traffic. They had a blast!

Domino’s kitchens were set up so pizzas could be made as fast as possible.

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Tom Monaghan: Domino’s Pizza Innovator

All About Delivery


Monaghan opened his first franchise location in 1967. The first
Domino’s outside of Michigan opened in Burlington, Vermont, in
1968. The next year, he opened 32 stores.
At the same time, Monaghan continued improving his business.
He helped to create the perfect pizza box. Corrugated cardboard
made boxes strong enough to stack. Plus, the pizza was protected.
Air vents kept pizzas hot and fresh instead of soggy from steam.
Monaghan also patented an insulating pizza bag. Once again, this
kept heat in but let moisture out.
Monaghan admired other successful food pioneers. So, he tried
to figure out what made Domino’s special. Colonel Harland Sanders
had taken a simple recipe and built Kentucky Fried Chicken. Ray
Kroc had practically invented the fast-food industry with McDonald’s.
Monaghan idolized those food giants. He knew Domino’s needed
an angle, something no one had done before. But what?

20
In the late 1960s, delivery service was not common. It was a
courtesy, but no one had built success on it like Monaghan would.
Monaghan’s vision was all about pizza delivery! It was a solid
concept. The special feature Monaghan was looking for had been
part of the Domino’s business all along.

Monaghan said his company was “built on wheels.”

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Tom Monaghan: Domino’s Pizza Innovator

Pizza in 30
The 1970s were full of ups and downs. Starting in 1972,
Monaghan called Ray Kroc every month. He asked if they could
meet. The answer was always no.
In 1973, the Monaghan family moved into a beautiful new home
in Ann Arbor. Then in 1975, Domino Sugar sued Domino’s Pizza
over their shared name. Domino’s Pizza won in 1980. Judges ruled
that no one would confuse pizza for sugar. Relieved, Monaghan
burst into tears.
Just a few months later, Kroc said yes to a 15-minute meeting!
It turned into two and a half hours of business advice from the
McDonald’s legend. That night, Monaghan got a call from a
Domino’s manager. Kroc had just walked in and ordered a pizza!
The 1980s were a time of major growth. In 1983, the first
international stores opened in Canada and Australia. There were
about 1,100 locations altogether.
In 1984, the company formalized its guarantee. Every pizza
would be delivered hot and fresh in 30 minutes. In a peak year,
1985, 954 new stores opened to do just that. This included stores in

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the United Kingdom and Japan. The first South American Domino’s
opened in Colombia in 1988.
Monaghan was rich! He set out to fulfill his childhood dreams.
He bought over 200 collector cars. He purchased houses designed
by Frank Lloyd Wright. In 1983, he even bought his favorite baseball
team, the Detroit Tigers. Then, the team won the 1984 World Series!

In 1973, Pizza Hut offered


to buy Domino’s. Flattered,
Monaghan said no.

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Tom Monaghan: Domino’s Pizza Innovator

Success at Last
A big company needed
a big headquarters. In 1984,
Monaghan started building
Domino’s Farms. This huge
office complex is in Ann Arbor.
Its design honors Frank Lloyd
Wright. By 1989, there were
more than 5,000 Domino’s
In 1986, Domino’s sales locations. That year, the
topped $2 billion.
business added its first new
menu item, Pan Pizza. Then in 1992, breadsticks became the first
non-pizza menu item. Buffalo wings were introduced in 1994.
Despite his success, Monaghan was beginning to make major
changes in his life. In 1992, he sold the Detroit Tigers. The owner
of Little Caesars, another pizza chain, bought the team. Monaghan
was realizing that possessions meant little without family, friends,
and faith. He used his wealth to support causes he believed in. He
donated money to political campaigns and to various organizations.

24
Bain Capital sold its interests in Domino’s
in 2010. That year, Patrick Doyle became
CEO, the company opened its 9000th store,
and it celebrated 50 years in business.

In 1993, Monaghan’s business had to make a major change of


its own. More than speedy delivery, Domino’s valued safety. So, it
dropped its 30-minute delivery guarantee. Instead, Domino’s would
remake pizzas or offer refunds to unhappy customers.
Domino’s remained an established giant. But in 1998,
Monaghan decided it was time to leave his business to other people.
He sold Domino’s to Bain Capital Inc.

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Tom Monaghan: Domino’s Pizza Innovator

Domino’s Today
Today, Domino’s continues to offer
many meal choices. The menu includes
sub sandwiches, pasta, and chicken
wings. Yet pizza is still the menu star.
Domino’s delivers up to 400 million
pizzas a year.
Domino’s supports more than
10,000 locations in more than 70
countries. The company employs 140,000
people. Its headquarters are still in Ann
Today, more than 40 percent of Arbor. Annual sales are over $7 billion
Domino’s orders are placed online.
worldwide.
Monaghan turned a small pizza place into a multibillion dollar
business. When he left in 1998, he made another of his dreams come
true. He founded what would become Ave Maria University in Ypsilanti.
The Catholic school moved to Florida in 2003. There, Monaghan
developed the town of Ave Maria. He designed the community to have
homes, schools, a local government, and businesses.

26
With his successful pizza company, Monaghan changed the
food industry. He made a success of his own life, too. He grew up
with little but big dreams and an amazing work ethic. Monaghan is
an American success and one awesome food dude!

In 2005, Monaghan was worth


$500 million, but he pledged to
give away much of that fortune.

27
Timeline
1937 Thomas Stephen Monaghan was born on March 25 near Ann Arbor, Michigan.

1955 Tom graduated from St. Thomas High School in Ann Arbor.

1959 Monaghan was discharged from the military.

1960 On December 9, Monaghan and his brother opened DomiNick’s Pizza.

1961 Monaghan became the sole owner of DomiNick’s.

1962 Monaghan married Marjorie Zybach on August 25.

1965 Monaghan named his pizza business Domino’s.

1967 The first Domino’s franchise opened.

Domino’s opened its first international stores; Monaghan bought the Detroit
1983 Tigers baseball team.

1984 Monaghan began building Domino’s Farms.

1998 Monaghan sold Domino’s; he founded what would become Ave Maria University.

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Pizza Popularity
Tom Monaghan may not have cared for pizza the
first time he tried it. But today,
many people would disagree with that opinion!
Pizza is extremely popular.
In the United States, 3 billion pizzas are sold every year.
That means 350 slices are sold every second!
The average American eats 46 slices in a year.
Pepperoni is the most popular pizza topping in the United Sta
tes.
The next most popular toppings are mushrooms, sausage,
ham, and green peppers.
Domino’s alone delivers more than 1 million pizzas every
day around the world.
Domino’s pizza delivery drivers travel more than 10 million
miles every week!
The busiest pizza delivery days are Super Bowl Sunday and
Halloween.

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Tom Monaghan: Domino’s Pizza Innovator

Glossary
architect (AHR-kuh-tehkt) - a person who plans and designs
buildings. His or her work is called architecture.
corrugated - having a wavy surface made of many folds.
debt (DEHT) - something owed to someone, especially money.
detention home - a place where children are kept, usually under the
care of the court system.
foster care - a system that provides supervision and a place to live
outside a person’s regular home. Someone in foster care lives in
a foster home.
franchise - the right granted to someone to sell a company’s goods
or services in a particular place. The business operating with this
right is also known as a franchise.
grueling - very difficult, or requiring great effort.
insulate - to keep something from losing or transferring electricity,
heat, or sound.
orphanage - a place for the care of children, usually those with no
parents.
patent - to gain the exclusive right to make or sell an invention. This
right lasts for a certain period of time.

30
peritonitis (pehr-uh-tuh-NEYE-tuhs) - an infection of the peritoneum,
which lines the inner abdomen and organs.
seminary - a school where students study to be priests, ministers, or
rabbis.
strict - following or demanding others to follow rules or regulations in
a rigid, exact manner.
sue - to bring legal action against a person or an organization.
tuition (tuh-WIH-shuhn) - money students pay to receive instruction.

Websites
To learn more about Food Dudes,
visit booklinks.abdopublishing.com. These links are routinely monitored
and updated to provide the most current information available.

31
Tom Monaghan: Domino’s Pizza Innovator

Index
A E P
Australia 22 education 6, 7, 8, 10 pizza bag 20
Ave Maria University 26 pizza box 20
F Pizza from the Prop 16
B family 4, 6, 7, 8, 10, 11, Pizza King 16
Bain Capital Inc. 25 12, 16, 22, 24
birth 4 Florida 26 S
franchises 20 Sanders, Harland 20
C
Canada 22 J T
childhood 4, 6, 7, 8 Japan 9, 23 30-minute guarantee 4,
Colombia 23 16, 22, 25
K
D Kentucky Fried Chicken U
delivery 4, 12, 16, 21, 22, 20 United Kingdom 23
25, 26 Kroc, Ray 20, 22
Detroit Tigers 6, 19, 23, V
24 L Vermont 20
DiVarti, Dominick 11, 17 logo 17
DomiNick’s Pizza 10, 11, W
12, 14, 16, 17 M Wright, Frank Lloyd 6, 9,
Domino Sugar 22 McDonald’s 20, 22 23, 24
Domino’s Farms 24 Michigan 4, 6, 7, 8, 10,
16, 20, 22, 24, 26
military service 8, 9, 10

32

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