A year and a half after a national ad campaign incentivized Domino’s customers to pick up their pizzas rather than having them delivered, the pizza giant’s customers have followed suit as its pickup sales rise and delivery sales fall.
During its third-quarter 2023 earnings report, the Michigan-based pizza brand reported that its U.S. same-store sales declined 0.6 percent while international same-store sales grew by 3.3 percent.
Domino’s carryout sales reportedly rose 1.9 percent compared to the previous quarter in 2023, while delivery sales fell by 2.3 percent.
The company’s earnings report came just four months after the world’s largest pizza company inked a deal with Uber Eats to allow U.S. customers to order its products through the Uber Eats and Postmates apps.
“We continue to execute on our initiatives to drive sustainable growth in the U.S.,” said Domino’s CEO Russell Weiner in its quarterly earnings results. “Our ‘Summer of Service’ initiative and the hard work of our franchisees and team members have brought delivery times back to pre-pandemic levels. Domino’s Rewards is engaging more customers, and our integration with Uber’s marketplace is on track. We are ready and excited to deliver the incremental orders both programs will bring in 2024 and beyond.”
Weiner also mentioned that some of its customers appeared to be trading down to pizza from more expensive options, which he expects to continue in the months ahead.
Based on actual results for the three fiscal quarters of 2023 and its outlook for the remainder of fiscal 2023, Domino’s expects its 2023 global net store growth to trend at or slightly below the low-end of its 5 percent to 7 percent two- to three-year outlook.