Indonesia – Domino's Pizza, a renowned pizza chain known for its delivery services, has seen an unexpected surge in customers flocking to its restaurants to pick up their own orders. This trend is particularly evident as consumers are increasingly opting for the convenience of carryout over delivery, given the rising costs associated with having food delivered.
In an interview with Business Insider, Domino's CEO Russell Weiner highlighted that the company's carryout comparable sales have grown by 7.9%, while delivery comparable sales rose by a more modest 2.7% during the second quarter. This impressive growth is attributed to customers recognizing that they can get "more than another pizza" for the money they spend on delivery fees and tips.
The shift towards carryout is largely driven by customers seeking greater control over their food orders. With concerns about potential issues with delivery orders or timely arrival, many patrons prefer the option of picking up their meals themselves. As Weiner noted, "This person's like: 'I don't care if it's out of my way, I'm going to pick it up because it's going to be right.'"
Domino's has also benefited from its strategy of opening more restaurants and reducing the distance customers need to travel to pick up their orders. This convenience factor has contributed significantly to the company's success in attracting new carryout customers.
Interestingly, Domino's data suggests that only about 15% overlap exists between the company's carryout and delivery customers. This highlights the distinct characteristics of each group, with delivery customers valuing the convenience aspect, while carryout patrons prioritize control and affordability.
The trend towards carryout is not unique to Domino's; other food delivery services have also seen a decline in demand as consumers cut back on their delivery habits due to rising prices. The rise of third-party delivery services such as DoorDash, Instacart, Uber Eats, Walmart Spark, and others during the pandemic has led to increased costs for consumers.
As one Instacart customer shared on TikTok after realizing they had paid close to $100 in markups on their groceries – excluding delivery fees and tips – many are now opting for carryout as a more cost-effective option.