Domino’s takes on food-delivery rivals with $50M free food giveaway

[Teh One Who Knocks]

The New York Post




Domino’s Pizza is taking on food delivery apps that it says charge unexpected fees — by giving away $50 million worth of free food to random customers, the company announced Monday.

The Ann Arbor, Michigan-based pizza chain is calling it a "surprise frees" promotion in an effort to take on surprise fees that it says its rivals like DoorDash and UberEats charge.

"Unlike many third-party food delivery apps, Domino’s provides customers with one straightforward delivery fee, because we know that’s what customers want and deserve. There are no hidden city or service fees with Domino’s," Domino’s COO and US president Russell Weiner said.

Anyone who orders Domino’s delivery online through Nov. 21 is eligible to get a giveaway item, like boneless chicken wings or a pizza, the company said.

Domino’s said customers will have just over a 7 percent chance of winning each time they order.

UberEats, DoorDash and other food delivery services have added fees in certain cities around the US as the result of government restrictions on how much third-party delivery services can charge restaurants.



DoorDash has added a roughly $1 to $2 delivery charge in cities including Chicago, Cleveland and Denver, CNN reported.

UberEats has charged a similar fee in Portland, Chicago, Minneapolis and Boston, the outlet added.

Domino’s, for its part, has long chosen to rely on its own delivery network rather than relying on third-party apps.

On the company’s second-quarter earnings call last week, Domino’s CEO Richard Allison said that while the company’s still a pizza company, he views third-party delivery platforms as the company’s "biggest competition."



"We also believe that the fact that we use a single transparent delivery fee, we think over time, is an important competitive advantage," Allison said.

"When I use a third-party delivery, I have to really get my calculator out to figure out what I’ve actually paid to have that food delivered, because maybe I got a discount on the delivery fee, but maybe I paid a service fee, maybe I paid a small order fee, maybe I have paid a fee because I happen to be in a city where they were charging an incremental city fee," he added.

"We very much believe a single transparent delivery fee, over time, we think, will be important to customers."

[lost in melb.]

Man, one day it's all going to be done by robots. All of it. Look out world!

[Griffin]

Man, one day it's all going to be done by robots. All of it. Look out world!

you mean the vaccinated

[DemonGeminiX]

"Unlike many third-party food delivery apps, Domino’s provides customers with one straightforward delivery fee, because we know that’s what customers want and deserve. There are no hidden city or service fees with Domino’s," Domino’s COO and US president Russell Weiner said.

I really don't like Domino's but I think you're wrong. Unless your customers are all damaged in the head, then they probably don't want delivery fees at all. But then again, they do eat Domino's, so they all must be damaged in the head.

[Teh One Who Knocks]

I really don't like Domino's but I think you're wrong. Unless your customers are all damaged in the head, then they probably don't want delivery fees at all. But then again, they do eat Domino's, so they all must be damaged in the head.

I have yet to figure out why in the last several years that pizza chains (and even some smaller mom and pop type pizza places) have added a 'delivery charge' to the bills. Pizza already has a HUGE mark-up when it comes to the difference in what they pay wholesale for ingredients versus what we pay retail for the finished product. Most chain pizza places are in very small building that have little, if any room for dine-in (other than Pizza Hut), so it keeps their overhead down. Plus we're expected to tip the delivery person on top of paying for the pizza. The whole 'delivery fee' is just a scam and pure profit for the pizza places. I know it's usually only a couple of bucks, but still.

[DemonGeminiX]

I have yet to figure out why in the last several years that pizza chains (and even some smaller mom and pop type pizza places) have added a 'delivery charge' to the bills.... The whole 'delivery fee' is just a scam and pure profit for the pizza places...

I think you did figure it out.

[Teh One Who Knocks]

I think you did figure it out.

It would be easier to have just kept it hidden in the cost of the pizza since it's already ridiculously expensive in reality for what you get. Instead, basically it's a line item that says "Give Us More Money Just Because".

I mean seriously, to get a couple of pies from the smaller local pizza places here can be upwards of $50

[Muddy]

you mean the vaccinated

Have you been drinking today?

[DemonGeminiX]

It would be easier to have just kept it hidden in the cost of the pizza since it's already ridiculously expensive in reality for what you get. Instead, basically it's a line item that says "Give Us More Money Just Because".

I mean seriously, to get a couple of pies from the smaller local pizza places here can be upwards of $50

Yeah, I know. My local place is selling a single large cheese for $16 (up from $14 pre-pandemic). Tack on one topping, it shoots up to $18. Order delivery and it goes up to $23. I live in a small town. There's no justifying those prices, let alone a delivery fee. I can make my own pizza that's pretty damn close to NY pizzeria quality for a little more than half of what they're charging. Cheese is expensive nowadays, but flour and yeast don't cost jack shit, a large can of tomato sauce/puree/crushed doesn't cost jack shit either. Spices you buy once and use sparingly, so the cost per pie is basically pennies. It's ridiculous.

I see a lot of people running to Little Caesars for their $6 pies.

[Griffin]

Have you been drinking today?

still

[Godfather]

I really like Dominos. The Brooklyn thin crust pepperoni is actually solid

I like the mom and pop places and the fancier brick oven places a lot too, but dirty Dom's has it's place on a hockey night in Canada with friends over. I think it's the best of the chain places in my area (definitely better than Pizza Hut or Little Cesar's IMO). It always shows up in around 20 minutes still hot and fresh (even the wings!), the price is right and the few times they've screwed up an order their customer service is great.

To me it's like the McDonald's of pizza. You know there are far better burgers out there, but every once in a while I need to crush a medium dommies za just like a Big Mac