Domino's Shoppers Choose Pickup Over Delivery to Cut Costs

In the initial quarter of the year, there was a notable reduction in Domino’s delivery orders, as numerous customers opted to collect their meals instead, aiming to economize.

This shift began gaining momentum in 2024 when consumers increasingly prioritized affordability when purchasing food. While some patrons continue to accept the expenses and gratuities linked to delivery, many have chosen to visit a Domino's outlet themselves to reduce spending, according to CEO Russell Weiner in a past interview with Business Insider.

During the quarter that concluded on March 24, the company's earnings announcement revealed a 1.5% dip in comparable delivery sales within the United States. Conversely, sales from their carryout service increased by 1% during the same timeframe.

Domino's overall same-store sales saw a 0.5% decline in the quarter, a figure CFO Sandeep Reddy admitted fell marginally short of their anticipations.

Customers' predilection for economical options has only intensified as 2025 unfolds. With inflation maintaining high levels, fears are rising that broader price surges, fueled by US tariffs on foreign goods, will strain budgets further.

"Our delivery operations are still grappling with broader economic challenges, primarily affecting those with lower incomes," stated Reddy.

Despite these pressures, Domino’s clings to its forecast that US comparable sales will ascend by 3% throughout 2025. Yet, Reddy cautions that persistent economic difficulties could threaten this projection.

Though inflation has been an ongoing concern, many customers have maintained their delivery habits in recent years. Uber's chief Dara Khosrowshahi mentioned that delivery expenses might drop on the platform during economic downturns, as individuals turn to Uber for income amid unemployment.

Nevertheless, Domino's figures indicate a potential shift away from delivery, especially amid rising recession fears in the US.

Despite experiencing a quarterly downturn, Domino’s is pressing forward with its delivery ambitions. The chain is poised to extend its service by partnering with DoorDash next month while preserving its collaboration with Uber Eats, which started in 2023.