Extra cheese... Despite vicious competition, Domino's quarterly sales still rose 4%. But the highlight was new CEO Ritch Allison defending the chain's contrarian delivery strategy: Domino's handles its own deliveries instead of using those flashy new apps. And it's proud of it.
Dough-to-door delivery happens under the Domino's brand... Meanwhile, McDonald's, Starbucks, and Chipotle use third-party delivery apps DoorDash, Uber Eats, or Postmates, with aggressive discounts to lure new eaters. That delivery outsourcing can cut costs and boost sales. But Ritch has problems with it:
- Quality: DoorDash's gig workers won't treat the pizza with the same love and care as Domino's faithful deliverers would.
- Fees: Uber Eats would snag 15%-30% of each order, and that adds up.
- Data: Postmates won't share key info about the orderer with Domino's. So Ritch won't give up data to "some third party who will ultimately use it against us."
Domino's has an obsession for the customer (data)... Acting like a tech company, Domino's has converted tons of phone call deliveries into app-ordered ones. Not only does Domino's keep the entire pizza bill by delivering on its own — It also understands eaters' eating habits. Knowing your Saturday late-night order helps it better sell you pizza midweek.