For most food service delivery drivers, tips are more than just a bonus -- they comprise a large portion of the drivers’ income. Now Domino’s is rewarding its customers who know this and tip accordingly.
Starting April 29, Domino’s launched the "You Tip, We Tip" promotion, which gives customers (who tip) a $3 "tip" to use themselves on their next online delivery order. Per the release, Domino’s is the first “quick-service restaurant to tip customers for tipping their delivery drivers.”
In order for customers to receive their own “tip,” they must tip their delivery driver at least $3.
"Domino's drivers have been hustling to deliver pizzas since 1960, and we love that customers have been tipping them for their great service since day one," said Kate Trumbull, Domino's SVP chief brand officer. "But these days, everywhere you go, there's a tip screen. The pressure to tip is real, even when no extra service is provided. So, we decided to flip the script and show our appreciation by tipping customers back."
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Domino’s Q1 2024 results showed a global retail sales growth (excluding foreign currency impact) of 7.3%, with U.S. same store sales growth of 5.6%. Income from operations increased 18.6%.
The company cited its improved loyalty program, as well as the Q1 launch of marketing and delivery for the pizza chain through the Uber Eats platform, as reasons for the sales uptick.
"Our new and improved Domino's Rewards loyalty program drove outsized comp performance, which flowed through to the bottom line with double-digit profit growth,” said Domino's CEO Russell Weiner. ”In Q1, we also went live with marketing on Uber Eats, and we remain on track to exit the year at 3% or more of sales coming through this new channel."