In 1961 brothers Thomas S. and James Monaghan purchased Dominick’s, a pizzeria in Ypsilanti, Michigan. Eight months later, James traded his share to his brother for a used car. The first franchise was sold within a few years. In 1965 Tom Monaghan renamed the business Domino’s Pizza. The company expanded and in 1978 it opened its two hundredth franchise. Monaghan located many outlets in towns with a military installation or college.
One reason for their success was home delivery, which had not been possible with other fast foods, such as hamburgers, which quickly lose their appeal as they cool. Pizza, however, can be kept hot (Domino’s used the “Heat Wave,” a special bag, to accomplish this) long enough to be delivered. When Domino’s main competitor, Pizza Hut, began offering home delivery, Domino’s promised customers that if their pizza was not delivered in less than thirty minutes, there would be no charge for the order.