Domino's Strikes Back at Delivery App Fees with Free Pizza Offer
Domino's, known for its signature pizza and love for hot deals, is causing a stir in the food delivery world with its latest move. The pizza giant announced this week that they're launching a surprise surprise – free food! Customers can snag freebies like pizza, sandwiches, and chocolate lava cakes when ordering through Domino's website.
And what sparked this tasty treat? You might ask. Well, it seems that Domino's is tired of extra fees hidden in delivery orders from services like DoorDash. Their website spells it out plainly: "other food delivery apps charge hidden city or service fees." But not Domino's, they say. They choose to be upfront and charge only direct delivery fees.
So, starting immediately and running until November 21, Domino's loyal fans can indulge in freebies with the "Lucky Domino" promo. The catch? For every 14 orders, a lucky customer gets a free meal! That means with each order, customers have at least a 7% chance of striking it rich.
Some food delivery services, like UberEats and DoorDash, have stirred up discontent among customers by charging fees before the checkout process in select cities. Source: Wallet Receipt at the bottom
Domino's hasn't been keen on relying on third-party delivery services in the US for a long time. And during a phone call sharing earnings results, Richard Allison, CEO of Domino's, admitted there's been some confusion in the long-term viability of certain platforms and how franchisees benefit financially.
“In 60 years, we've never made a dime off pizza delivery,” Allison said. “We make money off the product, but not from delivery. We're not sure how others are doing it.”
The free food offer could also help ease customer frustration over recently extended wait times for deliveries. Allison recently acknowledged that deliveries were taking a bit longer due to employee shortages. Domino's is addressing this by bumping up staff wages, a tactic that's helped some restaurants weather the labor crunch.
Additional insights
Domino's competition move can have a significant impact on both their brand's reputation and the overall food delivery industry:
- Customer Satisfaction: By offering free food, Domino's is trying to outshine its competitors, appealing to customers who may feel enticed by delivery apps' convenience and perceived value but are wary of hidden fees.
- Transparent Pricing: Domino's clear pricing strategy sets itself apart from competitors that hide delivery charges or service fees. Transparency can help build customer trust and enhance the overall experience.
- Promotions and Loyalty Programs: Special deals and rewards programs can help attract and retain customers, potentially reducing reliance on third-party delivery services.
- Dynamic Pricing: Domino's can adjust prices throughout the day or based on demand, creating a more competitive pricing strategy vis-à-vis delivery services like DoorDash.
- Hybrid Models: Restricting dependence on third-party delivery services allows Domino's to maintain control over customer data, delivery experience, and ultimately build a more stable business model.
The battle between pizza giant and delivery apps might just result in a succulent win for customers eager to enjoy their favorite food without breaking the bank. Keep an eye on the latest developments in this reframed food delivery feast.
