Dive Brief:
- Domino's customers can claim a $3 credit toward a future online order with every $5-plus online carryout order they place between Jan. 31 and May 22, the chain announced Monday. Diners can earn one $3 tip and redeem one $3 tip every day.
- Diners will receive an email with promo codes for the $3 credit that are activated when they click a "Redeem Your Code" button. The code is redeemable toward a qualifying order the next week (Monday through Sunday), according to Domino's website.
- "The promotion takes effect less than two weeks before Super Bowl Sunday, one of the busiest pizza delivery days of the year.
Dive Insight:
Domino's carryout credits incentivize off-premise ordering, but may also relieve some of the labor pressure facing the chain's self-delivery operations.
The company posted a rare decline in same-store sales in Q3 2021 as the restaurant worker shortage squeezed the company's delivery channel and order counts dropped. Encouraging carryout over delivery ahead of the Super Bowl — when Domino's expects to sell about 2 million pizzas — could help drive sales without incurring too many additional labor costs. It could also poach business from competitors, and remind diners of the cost benefits that carryout orders offer compared to delivery orders, which come with extra fees and wait times.
In recent months, rival restaurant chains have rolled out promotions offering customers rewards ranging from subscriptions to menu items to credits on their next checks. These loyalty investments come as competition for diner dollars heats up amid stagnating disposable income and high inflation.
Taco Bell, for example, offers customers a free taco per day for thirty days through its $10 Taco Lover's Pass. Roti, a Mediterranean fast casual chain, is giving customers a $10 credit just for downloading its app. Sweetgreen is giving loyalty members $3 off a meal every day for a month. These offerings showcase the emphasis restaurants are placing on digital sales at a time when consumers are swamped with choice and facing rising menu costs.
Hudson Riehle, senior vice president of the National Restaurant Association's research and knowledge group, predicted in a recent interview with Restaurant Dive that flat disposable income and high inflation will make diners more discerning in their dining spend, though most Americans do want to patron restaurants. Deep discounts and aggressive loyalty promotions could help restaurants draw sales dollars in an increasingly competitive environment.
