Dive Brief:

• Domino’s carryout business increased same-store sales by 14.6% during Q2 2022 compared to the year-ago quarter, CFO Sandeep Reddy said Thursday during the company’s earnings call. Carryout comps were up 33% compared to Q2 2019. 
• The gap in same-store sales at top-performing stores and bottom-performing stores, based on staffing levels, remains small, following strong consumer demand and a lower cost per sale versus delivery orders, Reddy said.  
• Carryout remains the company’s strongest area of sales growth in 2022, with delivery same-store sales declining 11.7% during the second quarter.

Dive Insight:

While Domino’s increased menu prices nearly 6% in the U.S. during the quarter, this doesn’t seem to be slowing down carryout demand. Carryout has not only grown over the last three years, but it’s proliferated over the last decade since Domino’s decided to focus on this channel, CEO Russell Weiner said during the Thursday call. 

The company offered a $3 tip for carryout customers to use toward a purchase in the following week between Jan. 31 and May 22. Its most recent boost week, which occurred during late June and offered customers significant discounts, was the biggest sales week for the company so far in 2022 and the biggest week in history in terms of carryout sales. 

“Consumer reaction was strong and we planned to do another boost week by the end of the summer, before we evaluate future cases,” Weiner said. 

With delivery sales declining, takeout is becoming a larger portion of the sales mix, Reddy said, adding that the company will have more specifics on that mix at the end of the year. 

“We are incredibly pleased with our carryout momentum, especially considering carryout is a much larger segment of QSR, giving us a significant runway for growth in the future,” Reddy said.