In Driver Crunch, Domino's Offers Tips To Carryout Customers

How rough is America’s delivery-driver shortage? So bad that Domino’s is tipping its carry-out customers $3 every time they pick up their own pizza.

It's promoting the new campaign with TV spots showing how customers are really secret delivery drivers, with parking-lot and sprinkler-evading moves of their own. The ads also acknowledge that it's not always so easy to pick up your own pizza: "It takes skills to get from our store to your door."

Boulder, Colorado-based WorkInProgress created the campaign, breaking in time for America's Super Bowl feeding frenzy, when Domino's typically sells 2 million pizzas. Ads are running on broadcast and print, out-of-home, radio, digital and social media, and are scheduled to run through the end of May.

Based in Ann Arbor, Michigan, Domino's is offering the $3 tip to anyone who orders online. They can redeem the coupon code for any other takeout order that week and combine it with other promotions.

The move may help tamp down delivery orders at a time when Domino's -- and just about every other restaurant company -- is struggling to keep employees, with delivery drivers an especially tough job to fill.

In its most recent quarterly results, Domino's acknowledged that its labor shortages had cut into sales, forcing some stores to cut hours. And the driver shortage has impacted delivery.

The chain also says its recent campaign for store pickup has been a big help to the "very challenging" staffing situations.

In a webcast for investors to discuss its most recent quarterly results, Ritch Allison, chief executive officer, said the company's marketing push has led to "a positive carryout same-store sales growth during the third quarter, as we continue to build awareness of Domino's car side delivery."

He said the ad campaign highlighting Domino's two-minute guarantee "is bringing in new customers. We have consistently averaged below two minutes out the door and on our way to the customer's cars. In fact, we have many stores across the country that are consistently below one minute."

In the call, transcribed by the Motley Fool, Allison said  it will "remain an important part of our long-term strategy to serve our existing carryout customers and to attract new QSR drive-through oriented customers."

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