Domino's offering $3 tip to customers who pick up their own carryout orders

Staffing issues impacted Domino's delivery business in the third quarter of fiscal 2021

Domino's is offering customers who pick up their own carryout orders a $3 tip following recent staffing issues at the pizza chain.

Domino’s customers who place an online order online through May 22 will be eligible to claim the $3 coupon code which can be redeemed towards their next carryout order placed within the following week. (Domino's)

Customers who place an order online through May 22 will be eligible to claim the $3 coupon code which can be redeemed toward their next carryout order placed within the following week. Orders must be a minimum purchase of $5 before tax and gratuity. 

Customers are eligible to claim one $3 carryout tip per day, which can be combined with up to one other carryout eligible coupon.

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Domino's CEO Ritch Allison told analysts on the company's third quarter earnings call in October that its order counts were pressured by "a very challenging staffing environment" that resulted in operational impacts such as shortened store hours and customer service impacts. He added that the staffing challenges had a "disproportionate impact" on the company's delivery business.

In order to alleviate its staffing issues, Domino's has rolled out an applicant tracking system to make it easier to apply for openings and be on board at U.S. corporate and franchise locations. The company also unveiled "operational best practices" to eliminate unnecessary time-consuming tasks, such as pre-folding boxes, and teased plans to maximize the number of deliveries a driver could make per shift.

"I don’t see why drivers should ever have to get out of their cars," Allison said. "Why can't we keep them turning to the store, back to the customer and maximizing deliveries per driver per hour, which also maximizes the wages that those drivers earn?"

In addition, Domino's recently reduced the number of wings in its $7.99 carryout promotion from 10 pieces to just eight as inflation has made its costs soar. Allison noted at the 2022 ICR Conference that the company expects "unprecedented increases" of 8% to 10% in fiscal 2022 food basket costs, about three to four times more than what the company normally sees in a year. 

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The latest effort comes as Domino's prepares for one of the busiest days of the year for pizza, Super Bowl Sunday, on Feb. 13.  

"Domino's typically sells about 2 million pizzas on football's favorite Sunday, so if you're throwing a party and feeding hungry fans, make it a carryout order and get tipped!," Domino's chief marketing officer Art D'Elia said in a statement. "Then you can treat yourself to a delicious pizza with a great deal the week after."

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DPZ DOMINO'S PIZZA INC. 427.10 -1.26 -0.29%

Domino's reported global retail sales of nearly $4.1 billion in the third quarter of 2021, including nearly $2 billion in the U.S. and over $2.1 billion internationally. Independent franchise owners accounted for 98% of Domino's stores as of the end of the quarter.