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Domino’s Pizza, once the undisputed king of the pizza chains, has set its sights on reclaiming the #1 spot. After facing delivery stagnation in the post-pandemic era, the Michigan-based company has implemented a multi-pronged strategy called “Hungry for More” to reignite its dominance.
Early signs suggest the strategy is working as Domino’s reported a 2.8% U.S. same-store sales growth in the fourth quarter of 2023, fueled by growth in both delivery and carryout sectors. This positive momentum comes before the full impact of their recent partnership with Uber Eats kicks in, offering wider reach and potentially attracting new customers.
Domino’s CEO Russell Weiner pointed out the importance of value: “Clearly customers want value and driving profitability for our franchisees while providing value to our own channels is one part of our barbell strategy while tapping into the aggregator marketplace. We’re very excited about this new sales layer, which we believe is a different and largely incremental customer that we have not been able to reach in the past.”
Domino’s introduced their new loyalty program in September experiencing huge growth and adding more than 3 million members since it went live. The program now offers more rewards, quicker…and tiered reward options.
Hungry For More Strategy
So, what exactly is Domino’s doing to get “Hungry for More”?
- Menu Innovation: Domino’s is continuously adding new (2 new items annually) and exciting menu items, keeping their offerings fresh and appealing to a wider audience. This includes recent additions like their “Stuffed Cheesy Bread” and “Garlic Parmesan Wings,” catering to the growing demand for variety and flavor.
- Convenience: Domino’s is known for its user-friendly online ordering platform and mobile app. They are continuously improving these features, making the ordering process even faster and more convenient for customers. This includes features like voice ordering and real-time order tracking.
- Delivery Domination: While facing initial challenges, Domino’s is committed to maintaining its leadership in delivery. The partnership with Uber Eats expands their delivery network, offering customers more options and potentially faster delivery. They plan on working with all third-party delivery platforms down the road. And they’ll be exploring new technologies like self-driving delivery vehicles to further enhance the delivery experience.
- Value: Domino’s understands the importance of value in today’s economic climate. They offer various deals and promotions, ensuring customers get the best bang for their buck. This includes their popular “two-topping pizzas for $5.99” deal, and the Emergency Pizza promo.
Domino’s saw significant traffic when they ran their Emergency Pizza promotion this past October. When customers bought a pizza, they recieved a coupon for a free Medium pizza the next day (or within 24 hours). You could say, it offered a level of value that customers have hungered for.
Kelly Garcia Domino’s Chief Technology Officer said: “What I find delicious is not necessarily what you will find delicious. We have an opportunity to provide deeper levels of personalization and ultimately drive frequency and optimize lifetime customer value… We’re excited to start this journey of going deeper into personalization in 2024.”
Pizza Hut recently made a move seeking to conquer the market by extending their hours to 2am in some places. Late night fast food is huge business, and capturing even some of that market would increase profits by a likely, large margin.
While reclaiming the top spot won’t be easy, Domino’s “Hungry for More” strategy shows promise. By focusing on their menu, tech advancements, delivery, and value, Domino’s is well-positioned to heat up the competition and potentially reclaim its pizza throne.
