Due to a nationwide lack of delivery drivers, one American pizza restaurant has begun offering cash incentives to customers who forgo delivery. In effect, they will be compensated by Domino’s to grab the order themselves.
Domino’s issued a statement saying they will now give customers $3 to use on their next purchase if they collect their pizzas from the restaurant rather than having them delivered:
“It takes skill to get pizza from a Domino’s store to your door,” said Art D’Elia, Domino’s executive president and chief marketing officer. “As a reward, Domino’s gives a $3 tip to online carryout customers who take the time and energy out of their day to act as their delivery drivers. After all, we think they deserve it.”
Customers who place an online carryout purchase between now and March 26, 2023, can redeem the $3 discount code. After that, the customer can use the coupon on their next online carryout order the following week, with a minimum $5 purchase before tax and tip.
Domino’s profits have dropped in recent months due to the epidemic and a reduction in staff. The pizza chain’s first quarterly loss in same-store sales in the United States occurred in the third quarter of 2021, falling 1.9% from the previous year.
CEO Richard Allison blamed the nationwide labor deficit for the company’s declining revenues, saying it had left them short of delivery drivers. In September 2021, a record 4.4 million American workers—or 3% of the total workforce voluntarily quit their jobs.
The hospitality and food service industries have the highest turnover rates because of low wages and unsafe working conditions. According to Allison, “staffing has been a challenge” for Domino’s because they do not use external delivery services like DoorDash or Uber Eats.
Domino’s corporate controller and treasurer, Jessica Parrish, claims that the shortage of workers has impacted the company’s customer service and that the company has had to cut back on its operating hours, resulting in fewer orders being placed.
Allison also mentioned that the corporation plans to handle “unexpected rises” in food costs, as the price of ingredients has risen by 8-10% compared to the previous year.
“We expected unprecedented increases in our food basket cost versus 2021 of 8-10%, which is three to four times what we would normally see in a year.”
“I think many of you are aware of the significant inflation across the US economy and how that is hitting many of the inputs that we have for our business, from meats to cheese to some of the grains that go into the production of our products,” he said.
Additionally, Domino’s has trimmed the number of chicken wings it serves from 10 to 8 to save money without sacrificing quality.
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