
Domino’s grapples with economic pressures, pivoting from delivery to carryout and forging new partnerships with DoorDash and Uber Eats.
At a Glance
- Domino’s customers shift from delivery to carryout to save money on fees and tips.
- Delivery sales fell 1.5% in Q1, while carryout increased by 1%.
- Inflation and worries about future tariffs drive customers towards cost-saving measures.
- Domino’s extends its reach by partnering with DoorDash and Uber Eats.
Economic Shifts Impact Domino’s Strategy
Due to ongoing economic pressures, Domino’s customers increasingly opt for carryout over delivery. Consumers, particularly those from lower-income brackets, are looking to cut costs by avoiding delivery fees and tips. This budget-conscious trend emerged in 2024, highlighting a consumer demand for greater value amidst climbing prices and inflation concerns. The result? Domino’s witnessed a 1.5% dip in delivery comparable sales and a 1% rise in carryout during the first quarter ending March 24.
These trends reflect broader economic anxieties, with many fearing potential increases in US tariffs compounding existing inflation woes. Despite this, some consumers continue to rely on delivery services, bucking the tightening economic climate. Recognizing these shifts, Domino’s is betting on innovation and partnerships, expanding its delivery efforts by joining forces with DoorDash and continuing collaboration with Uber Eats. Such strategies aim to stabilize and sustain growth amidst economic uncertainty.
Navigating the New Normal
Amid varying consumer behaviors, Domino’s sees a light at the end of the tunnel. For 2025, the company aims for a 3% growth in US comparable sales, though this target hinges on several unpredictable economic factors. While economic scrutiny remains high, Domino’s continues to adapt. Exploring alternative delivery channels and refining its carryout options, the pizza chain strives for resilience.
However, macroeconomic pressures, particularly on low-income consumers, remain palpable. This requires Domino’s to walk a fine line, balancing customer needs with innovative solutions and strategic partnerships in the food delivery ecosystem.
Partnerships: The Path Forward?
Domino’s new partnerships with DoorDash and continued collaboration with Uber Eats are strategic moves aimed at diversifying delivery options. As consumers navigate post-pandemic realities, having more choices ensures Domino’s remains competitive. This year’s economic ebb and flow have been particularly challenging, yet Domino’s adaptability underscores its commitment to delivering quality while meeting consumer needs.
Despite current challenges, Domino’s strategic outlook reflects optimism anchored in practical responses to ever-changing market dynamics.