While everyone else is delivering, Domino’s is banking on carryout

The pizza franchise is taking a different route to your door

Clare Wiley posted in Pizza

34w ago

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These days, you can get pretty much any food, anytime you want it. Krispy Kreme donuts delivered to your door at 2am? They’re yours. Sushi at the last minute? Consider it done.

There’s any number of food delivery services, from Postmates and DoorDash to Instacart and HungryPanda.

But in a food world that’s increasingly dominated by delivery, it seems that Domino’s Pizza is taking a slightly different route to your door.

Carryout is going to be a driver of the company’s profit in the future - that’s according to CEO Ritch Allison.

According to CNBC, shares of the pizza franchise popped almost 26% last week.

Speaking on CNBC’s Mad Money, Allison said: “While most of the industry is running headlong into delivery, which is inherently a more profitable channel to serve, we’re working hard to hold serve on that delivery side of the business while really growing that carryout channel.

He added that carryout “is going to be an important part of the profit equation going forward.”

Food delivery aggregators like UberEats and GrubHub are reportedly continuing to pressure Domino’s delivery business. But the franchise “managed to grow same-store sales in the domestic market for the first time in almost two years.”

Domino’s reported a profit of $129.3 million on $1.15 billion of revenue in the December quarter.

The company now also has 25 million active members in its loyalty program, which the CEO said was a milestone.

Domino’s has a goal of expanding its store count to 25,000 locations. They want to open more stores in order to increase service speeds.

What's more, the aim is that by opening stores closer to neighborhoods, customers will be more likely to go pick up their own orders - particularly in states like New York and California, where minimum wages are $13 and $12 respectively.

“This gets particularly pronounced on the coastal regions of the country where minimum wage has risen so rapidly,” Allison said. “The cost of carrying that food to the customer is only getting more expensive. So we look at it as, you know, a nice mix of two businesses that we can run in the same box that when you combine them together create a great profit equation for our franchisees.”

Do you prefer delivery over carryout?

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