Domino's to Continue Carside Delivery
Born out of COVID-safety concerns, Domino's debuted Carside Delivery last June and it “will remain an important part of our strategy as we continue to evolve the carry-out experience; not only to enhance the loyalty of our current carry-out customers, but also to reach a new, different, and largely untapped drive-thru oriented customer, going forward,” said CEO Ritch Allison in a Q1 earnings call with analysts.
For Domino’s, carside delivery is “a critical weapon …that's really a great tool for us as we compete for carry-out business against the drive-thru lanes of other QSR concepts,” he said.
Carside also taps on-location staff and doesn’t rely on a delivery driver. As the economy reopens, restaurants nationwide are struggling to find employees to hire. Taco Bell, for example, announced a goal to hire at least 5,000 new team members.
“The combination of COVID, strong sales, the broader economy reopening, and the high level of government stimulus, it's creating one of the most difficult staffing environments that we've seen in a long time,” said Allison.
Technology: Domino’s will continue to invest in technology initiatives and operating practices, procedures to continue to improve customer service. "The real pinch point in the business is drivers," said Allison. "…We continue our work around fortressing to give drivers more deliveries per hour, which translates into higher wages. We're working on technology and operating practices that keep drivers in their cars. So, imagine a world where they don't come back into the store. We run the pieces out to their cars and they go and take the next order. So, we're trying to work on those economics for our drivers to keep them busy and earning higher-level wages."
Q1'21 Highlights
- Domino's Pizza Inc. reported that during Q1, U.S. same store sales grew 13.4% versus Q1 ‘20. International business also posted strong results, with same store sales growth of 11.8%.
- Q1 marked the 109th consecutive quarter of international same store sales growth and the 40th consecutive quarter of U.S. same store sales growth.
- Revenues increased $110.6 million, or 12.7%.
- Net Income decreased $3.8 million, or 3.2%