![]() ![]() “Once the cost to get food delivered to you has to fully support the effort that it takes to get it there-only then will we know ultimately where this thing falls,” Allison said. stores where franchisees have the ability to set their own prices for delivery charges and menu items. And because they’ve long built-and in Domino’s case fortressed-real estate to meet this customer, there’s more flexibility in the current system.ĭomino’s has roughly 6,000 U.S. Yet with pizza, there’s decades of history to pull from that suggests lasting demand. As cost gets passed on to the guest in the absence of free deals to trial, what will ultimately happen to spending habits?ĭOMINO’S FIGHTS DRIVER SHORTAGE WITH ROBOTS In truth, it’s guess work concerning how customer behavior with third-party is going to evolve. “There is not a lot of room for some of these players to cede margin to a third party on one end, while labor costs are going up on the other.” “This is not an industry that starts with 40 percent profit margins typically,” Allison said earlier. It boils down to segment disruptors and the elasticity of demand in third-party delivery-something we really don’t know that much about. It’s a multi-year bet the company believes will leave it standing tall when the delivery “shakeout” arrives, Allison said. Here’s one staggering reality: Of Domino’s 1,000 or so corporate employees, about 600 fall into the IT department. The “long-game journey,” as chief executive Ritch Allison said in July. ![]() While aggregators and other entrants ramp up marketing and promotional incentives, the top-earning pizza chain is leading with technology. Domino’s continues to jostle for share in a tightening delivery space, but it hasn’t wavered in direction. ![]()
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