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Domino's will tip customers $3 if customers order pickup. This is a tactic to persuade customers to forgo delivery.

Domino's carryout tip
  • Domino's offers customers who place orders online a $3 "tip" towards their next order.
  • Domino's CEO stated that there was a shortage of delivery drivers for October 2021.
  • Although pizza chains were the early beneficiaries of the pandemic's effects, sales have declined.

Domino's offers a $3 discount for customers who pick up their orders. This is the latest indication of the negative impact that a shortage of delivery drivers has on the chain.

Domino's chief marketing officer Art D'Elia stated that the coupon is a tip for customers who "take time and energy out their day to act like their own delivery drivers." Customers will receive a coupon code to use on their next carryout order within the week.

Domino's announced that the deal will be in effect until May 22nd, before the Super Bowl. D'Elia stated that the pizza giant sells approximately two million pizzas every Superbowl Sunday, which is one of the busiest days in the industry.

Domino's has had difficulty hiring delivery drivers for some time. In October 2021's third quarter earnings call, Richard Allison, CEO of Domino's, acknowledged that the chain faced a labor shortage. He stated, "staffing has been difficult."

Allison stated that the overall staffing levels for the quarter were lower than the first half 2021. He said that while there were shortages of labor in the company, the most critical problem was the lack of drivers. Domino's stated to investors that it would focus on carrying out carryout orders in order to keep its sales up. Three months after the earnings call, Domino's announced a new promotion to divert customers from delivery.

The chain could face serious problems if it doesn't have enough delivery drivers. After experiencing a pandemic-induced boom, Domino's saw its same-store sales drop for the first time since 2021. For the past two years, pizza chains held a significant advantage over their competitors. They had the infrastructure and customers to deliver -- they were able to cater more of their business than other restaurants, so they could lose less. The pandemic was a time of greatest growth. Same-store sales grew by 10% in the first, third and fourth quarters 2020.

Although demand hasn't dropped, it is possible that there are fewer workers to fulfill orders. The difficulty of hiring and keeping workers is not unique to Domino's Pizza. Many business owners in this industry claim they are unable to hire staff. In some cases, they even mention a lack of interest in working. Workers however say they can get better pay and benefits in a tight labor market.

Have a story about a restaurant or retail chain that you would like to share? Email this reporter at [email protected].


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