Ordering from Domino’s is getting more and more expensive. During a recent earnings conference call, America’s largest pizza chain reported domestic sales growth, but delivered some news that will leave customers upset, especially if they’re on a tight grocery budget.
Domino’s same-store sales rose 2% in the U.S. in the third quarter and the chain’s revenue rose 7.1% — a better result than the company’s second quarter, when it struggled with staffing shortages, particularly in the area of delivery drivers. Price increases implemented earlier in the year were responsible for the sales growth, according to Domino’s.
In January, the $7.99 carryout deal got smaller and went digital only. In March, the pizza giant increased the price of its iconic mix-and-match delivery service from $5.99 to $6.99. And now the same price increase is applied to carryout orders.
“Raising our mix-and-match supply agreement from $5.99 to $6.99 was the right move,” said Russell Weiner, CEO of Domino. “Given the sustained inflation we’ve seen, our analysis suggests we should adopt the prices for our national carryout deal as well.”
With the mix-and-match offering, customers can order two or more items for $5.99 each, including medium-sized pizzas, pastas, or sandwiches. The price increase will come into effect on October 17th.
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The company is betting that takeout is the more popular option than delivery during inflation.
“We believe inflation will impact delivery more than takeout due to the additional cost of fees and tips in this channel,” Weiner told investors. And the numbers speak for themselves: Domino’s same-store sales for takeout orders rose a whopping 20% in the third quarter, while delivery sales fell 7.5% over the same period.
According to Restaurant Business, the chain has been “aggressively” promoting takeaways for years and believes the business will thrive in inflationary times when customers are turning to brands that offer the best bang for their buck.
Mur Dominko
Mura is ETNT’s Assistant News Editor, leading coverage of America’s favorite chain restaurants, grocery stores and viral food moments. Read more about Mura