How Domino plans to defeat the food delivery boom

While Domino’s Pizza doesn’t know it, the Michigan-based company has been preparing for a pandemic for years, with investments in online ordering, contactless delivery and curbside pickup.

Now these investments are paying off.

In the quarter ending Sept. 6, comparable store sales in the United States were up 17.5%, according to the company. Total revenue reached $ 968 million, beating analyst estimates compiled by S&P Global Market Intelligence.

At the same time, demand for food delivery apps such as Grubhub, DoorDash and Uber Eats has exploded in the wake of the Covid-19 outbreak and subsequent lockdown measures. Consumers have never had more options for what to eat at home, but even with this increased competition, Domino’s has managed to succeed.

To combat the rising tide of food delivery services, the chain has launched a campaign aimed at competition. Behind the scenes, he is also committed to controlling customer data and evolving into an agency model to keep pace with change.

A rush for delivery

With sales skyrocketing, Domino’s competitors in the food delivery industry began to better position themselves to meet demand. DoorDash, which saw revenue soar more than 225% to $ 1.92 billion in the nine-month period ending September 30, began trading on the New York Stock Exchange this week. In June, European food delivery service Just Eat Takeaway agreed to buy Grubhub for $ 7.3 billion. Most recently, Uber completed its acquisition of the Postmates delivery service for $ 2.65 billion, a deal originally announced in July.

Figures from data analytics firm Earnest Research, which tracks credit and debit card transactions, show American adults started spending twice as much on third-party delivery services in April compared to the same month of last year, and have continued to use them at high levels. since.

Other forms of pizza distribution to people at home are also heating up. GoPuff, a Philadelphia-based delivery service that delivers household items ranging from snacks to cleaning supplies to 500 cities nationwide, reports that since the start of the year, sales of frozen pizzas are up 139% compared to last year.

The Domino Playbook

Over the past decade, Domino’s has solidified its reputation as a leader in delivery through extensive marketing efforts. Longtime agency partner Crispin Porter + Bogusky (CPB) has designed ads promoting the chain’s Pizza Tracker, Delivery Hotspots, Delivery Insurance and AnyWare initiative, which allows Dominoes to be ordered from from virtually any device connected to the Internet. And although his DXP vehicle (Delivery Expert), an innovative machine with an integrated oven, has seen limited use, it has helped to consolidate the brand’s status as a company dedicated to delivery through its appearances in advertisements.

Despite its past success, Domino’s recently ended his 13-year relationship with CPB, naming the independent agency WorkInProgress of Boulder, Colorado, as its new agency of reference.

In a call with analysts on November 12, Domino’s Marketing Director Art D’Elia, who took over in his current role in July, spoke of the company’s need for speed in the transition to the new agency at the start. from 2021.

“One of the things we’ve all learned during this crisis, but which was definitely a marketing trend before the crisis, is that changes in consumption are going to happen at an accelerated rate,” D’Elia explained. “We really want to continue to be able to roll out marketing initiatives and campaigns at a faster pace.”

D’Elia believes the smaller WorkInProgress is better suited to “get more messages to consumers faster than in the past”.

But don’t expect Domino’s message itself to change drastically. WorkInProgress was founded by veterans on behalf of CPB who have an intimate understanding of the brand, and their previous stint with the brand apparently coincided with the tenure of Domino’s U.S. CEO Russell Weiner as chief executive. Domino marketing.

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