Dive Brief:

• Domino's Pizza is partnering with sports-betting app DraftKings to promote a new guarantee of completing carside deliveries in two minutes or less, according to a press release.
• The challenge lets DraftKings users predict whether orders will actually show up in under two minutes, more or less than 80% of the time. Those who call their shots correctly have the chance to win a share of a $200,000 pot.
• The news marks the first instance of DraftKings creating a betting pool based on a company's performance, according to Domino's marketing chief Art D'Elia. It is the latest sign that Domino's is narrowing in on mobile-first activations as it emerges from a pandemic period that reshaped consumer habits.

Dive Insight:

Domino's challenge with DraftKings recalls the pizza brand's famous "30 Minutes or Less" policy that resulted in a costly lawsuit but served as an early indication of its focus on forward-looking delivery capabilities. The brand has been a leader in the pizza category when it comes to developing proprietary delivery technology, but the space has grown more competitive as the pandemic forced many restaurants to shift their operations to digital channels and partner with third-party delivery apps such as DoorDash and Grubhub to serve homebound consumers.

Meanwhile, sports betting has taken off in the U.S. after the Supreme Court ruled that states could legalize the practice in 2018. Companies like DraftKings and FanDuel have seen a boon from the decision and subsequently attracted more substantial partnerships from major brands and sports leagues, while consumers have bet on increasingly niche events. Pushing carside delivery with a betting tie-in demonstrates how Domino's is continuing to evolve its marketing as consumers navigate a patchwork pandemic reopening.

Carside delivery falls under the company's carryout ordering options, where users can choose between going into a store to retrieve their food or having an employee bring it out to them. Those who opt for carside delivery can check in when they arrive at a location using the Domino's app and then view a tracker to see if their pizza is coming out in under two minutes. If Domino's fails to deliver within that time frame, customers can receive either 60 rewards points redeemable for one medium, two-topping pie or 20% off their next order.

In a statement, Domino's CMO D'Elia positioned the DraftKings partnership as part of the chain's focus on ensuring transparency with customers while also providing a fun distraction. The campaign centered on operational efficiency comes as many restaurants struggle with labor shortages due to employees grappling with pandemic burnout or seeking higher-wage jobs. Domino's last August enacted a major hiring spree to meet pandemic demand.

Elsewhere, the company is looking to areas like autonomous technology to fulfill its needs. Earlier this year, Domino's began a self-driving pilot in Houston that leverages the driverless R2 vehicles of robotics company Nuro. An advertising blitz around the partnership brought back The Noid, an infamous brand mascot dedicated to thwarting Domino's speedy deliveries that saw its heyday in the '80s.