Domino’s delivery business is facing pressure due to the battle to find drivers, resulting in a drop in delivery same-store sales. However, the company has seen improvements in delivery service times and has gained market share in quick-service pizza delivery overall. The brand remains committed to first-party fulfillment but also has a significant international business with third-party delivery aggregators. On the other hand, carryout same-store sales have been rising, and the channel accounts for half of Domino’s business. The company is experiencing trade-down from non-Domino’s carryout to Domino’s carryout. Despite challenges, Domino’s has seen overall business growth, with an increase in average ticket and pricing. The shift back to dine-in has bigger implications for Domino’s compared to non-pizza restaurants. Additionally, Domino’s has implemented various technical innovations, such as in-car ordering through Apple CarPlay, and has launched a fleet of electric vehicles to address the delivery driver shortage. The brand has also been expanding globally, opening new restaurants both domestically and internationally.
| Signal | Change | 10y horizon | Driving force |
|---|---|---|---|
| Domino’s delivery business facing pressure | Decline in delivery sales | Increased use of third-party delivery aggregators | Lack of available delivery drivers |
| Increase in carryout sales | Shift from delivery to carryout | More focus on carryout sales | Customer preference for carryout |
| Overall increase in same-store sales | Increase in average ticket | Higher prices offset by lower order volume | Rising prices |
| Decline in quick-service delivery demand | Decrease in delivery demand | Shift in consumer eating habits | Return to dine-in eating habits |
| “Summer of Service” training program | Training program for franchisees | Improved training and service quality | Focus on improving franchise operations |
| Addition of in-car ordering through CarPlay | Integration of technology | Enhanced customer convenience and ordering process | Response to delivery driver shortage |
| Launch of electric vehicle fleet | Adoption of electric vehicles | Reduced emissions and maintenance costs | Response to delivery driver shortage |
| Expansion of Domino’s globally | Increase in restaurant locations | Greater global presence and market share | Company growth and expansion strategy |