Domino’s Pizza Inc. said it will lean on initiatives such as a deal with Uber Technologies Inc. and a revamped loyalty program to boost sales as its delivery business struggles.
(Bloomberg) — Domino’s Pizza Inc. said it will lean on initiatives such as a deal with Uber Technologies Inc. and a revamped loyalty program to boost sales as its delivery business struggles.
Domino’s intends to eventually sign agreements with other ordering aggregators after announcing a partnership with Uber Eats and Postmates in early July. The Ann Arbor, Michigan-based company could clinch $1 billion in additional sales in the US once it expands to other platforms, Chief Executive Officer Russell Weiner said Monday on a call with analysts.
“This will be a premium-priced channel for us,” Weiner said. “The higher income customers that they’ve got are the ones that we’re going to be targeting.”
Domino’s also plans to launch a new US rewards program in September that will make it easier for customers to earn and redeem points, Weiner said.
Read More: Domino’s Pizza 2Q Revenue Misses Estimates
The pizza chain benefited from a jump in demand after Covid-19 broke out, but it has struggled in recent quarters as consumers returned to in-person dining and some lower-income households switched to eating at home. Domino’s reported a decline in US order counts in the quarter ended June 18, which offset higher average ticket sizes.
Efforts to attract value-oriented consumers have included promotions such as a limited-time half-off pizza deal in June. Domino’s is also looking to grow its carryout segment to the size of its delivery business, Weiner said. Carryout appeals to customers who want to avoid delivery fees and tips.
Domino’s shares rose 1.2% at 10:27 a.m. in New York.
–With assistance from Diana Carolina Bravo.
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