Domino’s Pizza Empire Was Built on Delivery. Now, That May Not Be Enough | WSJ The Economics Of

Domino’s dominates U.S. pizza sales, thanks in part to its innovations in delivery. But now, a shortage of delivery drivers is challenging this foundational part of its business.
Illustration: John McColgan
0:00 Dominos has excelled not just at pizza, but also delivery
0:41 The history of Domino's
1:47 How does Domino's deliver their pizzas so efficiently?
3:51 Delivery apps like Uber Eats, Grubhub and Doordash are proving to be a challenge for Domino's
4:35 Domino's exploring new options, like EV delivery fleets
The Economics Of
How do the world's most successful companies generate revenue? In this explainer series, we'll dive into the surprising stories behind how businesses work--exploring everything from Costco's "treasure-hunt" model to the economics behind Amazon's AWS.
#Dominos #Pizza #WSJ

[@Hathur]

I stopped using delivery for pizza some time ago. When you factor tip plus service fee + discount for pickup almost all pizza places offer nowadays, you're looking at around 50% cheaper pizza by getting it yourself.. at least where I live anyway.

[@Anurania]

I grew up in the UK and when you ordered a 7.99 pizza for delivery there you paid exactly 7.99. When I moved here a 7.99 pizza has 8.25% tax, a few dollars delivery fee, and then you're expected to tip as well, so yeah easily 16.

[@lucasporto9285]

There is a place near my house called "Porteño" that have AMAZING pizza. Cheap too, around 12€ per pizza, with good size and ingredients. If you use Uber Eats (only way to get it delivered) it jumps to 18€, adding service and transport fee, you jump from 24€ for 2 pizzas to basically 40€.

[@senpai1628]

@@Anuraniatip system is a scam .

[@jamescameron204]

100% always picking up and using pick up special, ALWAYS

[@genpaullacamera2233]

Hello beautiful how are you doing today?

[@peterbarlow7781]

Fun fact: that tracker does not actually show you exactly where your pizza is… rather it works on a countdown system.

[@NorthHollywood]

In Canada, the pizza tracker actually tracks the cars GPS like an Uber. We actually know exactly where it is.

[@marcusireland5696]

yep, and it starts counting down when your pizza gets bumped off the makeline screen at least thats how it works in Australia

[@VictorContreras1]

The only Timer Part is when in the oven and it's really more based on what the oven is set at in the store.

[@seaque.]

the only important part you should track is after the pizza gets on the vehicle. This multi part tracking system probably causes stress on workers.

[@pointgivin]

🤯🤯🤯

[@keepinitcool4254]

I've worked there as a delivery driver for a year and a half. The employee turnover is pretty high, usually bad customer experiences are caused by inexperienced employees but there's also no real training so its understandable. Here's a few random things to know. There are a bunch of different coupons we can apply for most menu items, some employees care enough to apply a coupon without asking but many don't. There's a few that the customer needs to ask for. You'll always get a petter price ordering on the app or online though, and applying the good coupons yourself is not difficult. It's not a small difference either, I've seen individual pizzas cost close to $30 that could have costed about 12 dollars by clicking on a coupon. Also the TV ads always quickly add "When you order online" at the end of whatever offer they were advertising. The online coupons and the ones we can apply in the store are 2 independent systems that share a few of the same coupons but many are different. Late 2022 the mix and match coupons were changed to 6.99 for online, in store, carry out, and delivery which simplified things because different combinations of those would vary by one dollar and customers noticed and were confused.

[@glamdawling]

The Domino’s online ordering system made me always order from them. I loved watching the tracker.

[@Adrian-op5ni]

I love how they brainstorm for solutions and innovation. Constantly working hard to push the customer experience. Just ordered a Dominos pizza for my kids on Friday and the delivery beat me to the house as I picked up my kids. They’re keeping my business for sure.

[@maneeshahooja]

Informative. Thank you.

[@who2u333]

My last Domino's delivery time was 90 min after cook time. Like others commenting here, I will just pickup from now on.

[@rohitshash353]

such a clean WRX hatch

[@titoemesti791]

And meanwhile here in Italy Domino's completely failed and has closed all the shops

[@azrrrrrrrr]

i mean who would eat that overpiriced dominos over italian pizza?

[@orionAAD]

I mean... It's just like taco bell in mexico, locals know what's up

[@YouCanCallMeReTro]

I still don't understand people in America who get dominos its like they're conditioned to the brand when we have waay better local options everywhere. Its easy to find good pizza in america dominos has no edge other than late night.

[@billyriker2966]

Here in NY, even upstate Dominos is a last choice. Same for Subway since we have real delis and pizza places.

[@weil9525]

Always shop for pick-up specials. Almost every pizza delivery/pick up stores offer in-person pickup specials.

[@zerwif]

I don't think I or my family have even gotten Dominos delivered. We either went to to store, or got delivery from Pizza Hut or the more local based Round Table Pizza.

[@riceman20]

I miss the Pizza Hut restaurants in the 80's.

[@genpaullacamera2233]

Hello beautiful how are you doing today?

[@eileenjing4672]

Can you make an episode about the Economics of Apple? Thank you!

[@ahotdj07]

@3:15 - Domino Tracker is not an accurate device - it just gives you a visualization of the ordering/delivery process. Once the pizza(s)/food leaves the store is when it is semi-accurate.

[@jaydibernardo4320]

Costco pizza FTW! Of course no delivery but I have no issues picking it up.

[@Random_dud31]

Yeah. But you have to go to Costco which has locations more fewer than dominos. People go to Dominos because they want good pizza made quickly at a decent price (relatively) But i won't deny Costco pizza is amazing for the price

[@dreadlord76]

No Combo pizzas anymore. Haven’t bought a Costco Pizza since they cancelled the combo!

[@Veyronp87]

thats hardly a competitor. you have to go inside a crowded Costco which are very few and far between.

[@tomf5823]

ewww

[@hdaviator9181]

They may have to make a decent pizza now to survive.

[@21stcenturyMoments]

Big markups on pizza. Tasty profit🍕🤑

[@nordy259]

I always pick up my own pizza but I also never order from chains either. I always buy from mom and pop pizza places because the chains can't compete with their quality.

[@asianstud7]

I haven't had a pizza delivered to me in 20 years. Lol

[@typxxilps]

Well, here they are quite good and usually deliver in time a quite good quality for the prise, but this is in Germany, where Domino had purchased a pizza chain called Joey's so maybe not really comparable. Joey was great before too, and they had only slowly developed it further since the purchase 2015 or so. Not the really traditional italian pizza you can get here from an italian mama made, just a bit different with a unique style and not just a simple average copy. We take them away maybe twice a year during summer and around chrismas. Can not really complain cause a queue in the chrismas time is quite usual and if that might take more than 30 minutes.

[@PhillipWenger]

In Switzerland, they suck.

[@ThekillingGoku]

Here you have them doing 'crazy Tuesday & Saturday'. These days they basically give you your pizza at about 50% off IF you pick it up yourself. Basically, it's a pick up discount. But heck ... that's the only time I ever get pizza. As for Pizza Hut, here in my town they pretty much followed suit. They are now doing 'crazy Saturday' to complete with Domino's.

[@kerryrobinson9947]

Netflix used a same strategy- rather than brick and mortar stores they contracted the postal service to deliver movies. It crushed the walk-in rental industry. 🥊🍕🍿🎞️📀

[@John_Q]

Domino's, and other pizza delivery joints, is stealing from delivery drivers by charging a delivery fee. Pure greed.

[@sotch2271]

No its for paying the guy, idk for dominos but iur pizza places here in canada pay their drivers the minimum wages at least plus tips

[@John_Q]

@@sotch2271 Wrong, the profits from the food pay for the guy. Pizza has a big profit margin.

[@ioTOASTY]

As a full time domino's delivery driver for the past 5 years. I love my job But if you want to inspire new hires All you have to do is pay more. Investing into Electric vehicles, Just means you just won't pay the drivers any mileage which IS half of our pay. Yet your franchise has been sued over mileage discrimination for years, I have even received one of these checks. So if you want Innovation then all you have to do is look at the people That love their job and worked for chump change.

[@joseeduardo4327]

Lotta haters on here. Zza is good

[@ThiNo737]

Where I live I have several options that are local, use better and fresh ingredients for their pizzas and are often cheaper than Domino's. Some of them even offer free delivery. So there is no reason to get delivery at Domino's.

[@YouCanCallMeReTro]

Virtually the only reason to get dominos is because they're the latest place open. Otherwise they are beat on taste/ingredients by just about any local place with no sacrifice on your wallet. Maybe it depends on the pizza quality in your area but I've never had a reason to get dominos before 11 p.m.

[@traildoggy]

I make dough in a bread machine and bake my own. 5 minutes to prep dough, let it work for 1 hour. a couple of minutes to set up w veggies and sauce and 12 minutes to bake. WAY better. Costs a few dollars for a pie.

[@rochester212]

I make my own pizza at home. Not only i have complete control of the product, i also enjoy working with my hands.

[@Veyronp87]

dont remember the last time i had pizza delivered. the app makes it easy to time when you leave the house to pick it up.

[@MetalMilitia072583]

I remember using the pizza trackerwhen it came out, my parents didn't believe I'd just ordered a pizza without calling 😂

[@auro1986]

how? deliverying pizza to wsj

[@mm-yt8sf]

is the guy loading the pizza into the car at 4:59 some kind of cyborg attached to the domino's overmind? 🙂

[@jawadarif5676]

I'm the UK there uses the just eat app, I don't no if there uses there driver or there own

[@CanadaMMA]

Out of all the big pizza chains, Dominos is the best IMO. Local places might know a market better, but if you want a solid pizza, Dominos is always there.

[@MrAndreisousa]

what is that stuck on the guys arm at the end when putting the pizza into the car?min 4.55sec

[@Tonyhouse1168]

Looks like a nicotine patch

[@poolhall9632]

When I was a kid if we wanted pizza we would go to Pizza Hut. If we were having a party, at the pool, etc we would order dominos.

[@Mental_Egg]

Best stock since 08

[@LebronCCP]

How does the $3 carry out tip work?

[@keepinitcool4254]

There's a domino's app, after you place an order for carry out it'll show a pop up message similar to the one at 4:49 and it'll show a code. On the next order you place, you enter the code in the coupon code box and get 3 dollars off. That's for online ordering, at least when I've used the app.

[@jgavpercussion]

This plays like an ad for Domino's

[@CHMichael]

I order from domino's once every 5y. So many better places out there.

[@asanokatana]

“Dominoes continues to test limits of what humans will eat.” - The Onion, being more truthful and accurate, as usual, than a satirical news site has any right to be.

[@761jared]

While Dominos may be concentrating on their delivery service, they still need to make the pizza taste better, not just consistent. While I'm not against this corporation, something about their sauce reminds me of the taste in my mouth after vomiting (acidity, I guess). It's also highly salty, which can't be good for the increasing amount of people with blood pressure issues.

[@hugolols55]

They should do diesel 8 cylinder cars

[@irregularmana6216]

For whatever reason my feed has been mostly WW3 and China or Russian this or that. I'm glad for this.

[@zachjg98]

S/O to the narrator for pronouncing Ypsilanti correctly

[@stephensullivan1011]

Dang. Now I want Dominos

[@gcmoney]

I grew up on Domino's pizza 🍕

[@bngr_bngr]

I love stories about pizza!

[@eldermcnamara3631]

Dominos pizza has always been good I’ve always preferred it more then Pizza Hut which they have changed there recipe drastically over the recent years which became disappointing for me for Pizza Hut … as for dominos I remember it being nasty in the early 2000s , but they have made great moves in 2005 and on and the pizza has been great ever since !

[@CJ-gp9yh]

The one reason I don’t order dominos anymore is the lack of vegan options

[@DennyLewis]

Big fan of how Domino's is consistently finding new ways to make pizza delivery and pick up fun

[@manveensingh3494]

3:32 Domino’s Pizza uses the 3rd party apps like zomato and swiggy in india for delivering pizzas unlike US where they refuse to be available on ubereats etc

[@ZeroCtr1]

I work for them I'm definitely copying their methods in my next businesses venture but you can't be number 1 forever

[@ziggy31337]

Which methods?

[@Basta11]

Had they focused on tech instead of Pizza, they could have been the largest food delivery company in the world.

[@knockhello2604]

Didn't invest in the right sector

[@MrMikeymontemayor]

A little neighborhood joint called Domi nos

[@ChristopherTradeshow]

what about that whole custom delivery car with the oven they tried implementing

[@maans9936]

I just quit my job as a delivery driver, $6 an hour 🤣

[@JohnnyMchannel]

@2:36 Why don't they have gloves on handling the dough

[@jon6309]

I like Dominos. I order pick up from their app most of the time.

[@sharpiechello4813]

what do u get

[@jon6309]

@@sharpiechello4813 I normally use their coupon deals because it’s cheap but I always order 3 toppings (pepperoni, Italian sausage and bacon) but with honey bbq sauce instead of tomato

[@louiearmstrong]

@@sharpiechello4813 Medium 2 topping pan for $8 here or large 3 topping $8 takeout coupons

[@chrisklugh]

I think Domino's pizza is the worst. I can only eat a slice without getting an funky feeling in my stomach.

[@drewh3224]

I love Domino's

[@bngr_bngr]

I love their thin crust pizza.

[@gimoon26]

I love pizza... but I never order from Dominos

[@Gareebaa84]

They just need to do something about the taste. It amazes me ppl will order for the convenience factor over the fact that this is a 3.2 / 10 pizza

[@KLam-mx2fl]

Ever heard You pay for what you get,

[@JustAwesomee]

There’s no reason to be charging a $5 delivery fee. I’ll just go get it myself.

[@SafetyBriefer]

‘Merica!

[@lancelotf.x3619]

I like their pizza.. ordered from them in Chicago, Kuala Lumpur, Johannesburg, Beijing..taste was very expectable .. like the meatlover

[@kingrob5879]

Does anybody remember Showbiz pizza 😉

[@Ramon_92]

If i order out usually if i want my food fast i dont have too think long … Dominos will deliver my pizza alot faster than any other delivery service out there !

[@arayan49]

Actually I started liking them.

[@tonicalloway7227]

Man!..I worked for domino's pizza for 8yrs.woodwar,kercheval,the one near the old tiger stadium,that's when Tom monaghan owned domino's and the tigers..but in ohio,its papa johns..

[@blueballsbkueballs]

Thank you for your service Sir, hope you you're in a better place.

[@idealab3558]

How much does a brand pay WSJ for making content like this? WSJ journalized ads. GJ

[@symonsmith3497]

In the UK, Domino's is only rated one star. my advice to anyone is say no to Domino's

[@stoundingresults]

There was a youtube video of a domino's driver buying a bunch of frozen pizzas like he was stocking up supplies for the store. It appeared to be a UK grocery store.

[@bngr_bngr]

British food is horrible. Domino’s is an upgrade.

[@psycherevivedby]

@@stoundingresultsIt wasnt pizzas, it was wedges for the side they offer.

[@ntm192010]

Fact. In Germany this company has failed just as Wal Mart. There are only a few stores left.

[@Airwr3ck]

This feels like an ad.

[@bngr_bngr]

I make my own pizza. I go to local pizzerias but the only fast food pizza place I go to is Domino’s.

[@itsderekwolf]

You missed 1 very important detail. Their pizza is MUCH better than the surrounding competition in many cities

[@azrrrrrrrr]

bro how bad is pizza where you live? i am from europe and we have solid pizza places everywhere

[@damiangrzywacz6739]

I am man from Poland. I eat the Domino

[@srw2289]

This is the case that shows how important developing the web is. I'm motivated to study programming to make my website.

[@dillonqaphsiel7977]

They always talk about delivery but they wont deliver if they have to drive for more then ten minutes. So unless you live in a city they will never deliver.

[@cypherdroid]

How come dominos charge a develivery fee but also a tip for the driver ? If i have to tip the driver why i have to pay a delivery fee ? Pay your drivers what they deserve if you're charging a delivery fee.

[@fattypark]

Liveried EV delivery vehicles? Ha. In the UK, they roll up in 20 year old Toyotas or VWs with no wheel trims. Brilliant service though.

[@BlueJazzBoyNZ]

People are lazy and sometimes drunk. So delivery for instant gratification....

[@KLam-mx2fl]

The way I look at it is my time is worth more than $9 for 30-45 minutes. I don't mind paying $4 delivery fee and $5 tips for delivery . Instead I can get other things done on the mean time

[@JogBird]

just make your own pizza, easy peasy

[@trapaneezus]

Little Caesars betta

[@lognum4155]

after getting my pizza 2 hours late, said thanks without a tip.

[@Will-wb6nk]

This 5-minute video could have been a minute and a half long😂

[@nitefise3890]

No wonder why Game Theorists considers it to be the best pizza

[@stevenpinkerton777]

Inexpensive pizza, chicken etc. $5.99 each, unless you're having it delivered. Then it's $6.99. You have $14 worth of pizza and chicken in your cart. Domino's, who built their empire on free delivery, now charges $8 for delivery. Then there's 10% sales tax in WA, so we're up to $24.17. Gotta tip your deliver person, so slap another 15% on that, bringing the total to more than $27.50. Remember the actual product -- the pizza and chicken -- cost $12 (+ $1.20 tax) = $13.20. Same for grocery delivery services. You think that you're paying a delivery fee and a tip to the helper and that's it. No. You're getting your $5.99 pizza for $6.99. Seems like fraud since it's not disclosed.

[@manveensingh3494]

now lets look at the alternative. imagine you have to pick up the pizza yourself. how much does it cost to drive to the location and pick up the pizza ? I am sure it would be cheaper, but it takes more time out of your day. so either you pay with time or with money.

[@alexevans997]

Dominos makes my skin break out almost immediately after eating it 😂😂

[@ericwright1840]

You probably got a veggie pizza.Your body 👅 is probably saying F-you.I'm a meat eater.

[@drewh3224]

Why?

[@wokeymcwokeface1974]

Goosebumps?

[@stoundingresults]

@ Alex maybe you have a gluten or wheat allergy.

[@bngr_bngr]

That’s weird.

[@ddc2343d]

I used to always think of dominos and cheap ...ehh pizza. Now I feel that way about Pizza Hut...expensive undercooked pizza. I go with dominos most to he time.

[@VEVOJavier]

We all know we only buy Domino's when we want an okay pizza for a good price that arrives quickly... No need to say they're such terrible quality, if you want good pizza you go to a legit restaurant instead of a franchise fast food store lol

[@richardgilmore2992]

My wife just ordered pizza from dominoes for delivery and paid $42 . With everything in this country going down hill this is stupid. Not even an American to talk to. Never or ding from dominos again.

[@richardgilmore2992]

Update now it’s going to be 2 to 3 hours to get it. Dominos really sucks . Won’t buy their pizza anymore.

[@drmode]

They should spend more on improving their pizza

[@Lightningkuriboh]

Dominos isn’t pizza, it’s dominos. It’s like how Taco Bell isn’t Mexican food, it’s Taco Bell. Ya feel?

[@Lemurian.Quartz]

Is nobody shook that little Caesar’s has such a large chunk of this pie?? Do they actually have decent pizza? In my mind they are par with chuck-e-cheese and Cici’s

[@thegone7]

Little Caesar’s is the place you go for when you want CHEAP pizza. It sells pizza at such a low rate (made cheap with in house supply chains) that plenty of people buy because you get a ton of pizza for a small cost

[@colecalame5815]

To answer your actual question, no. No they do not.

[@bondpit8750]

People with kids. Kids love the stuff and you can fill their bellies on the cheap.

[@Blonded_ye]

Little Caesar’s is the go to for gatherings. Kids party, kids soccer party, etc. cheap and to the point

[@kbro1984]

Taste like cardboard

[@SorminaESar]

I prefer Pizza Hut than Domino, but when you're hungry, both of them are delicious

[@bngr_bngr]

PH is greasy.

[@jarrodmagnusson4101]

@@bngr_bngr they use human meat.

[@SorminaESar]

@@jarrodmagnusson4101 you eat firstly👍😜😜😜

[@jarrodmagnusson4101]

@@bngr_bngr Go do some research on Senomyx. This company makes food additives and one of their many components of ingredients is human fetuses. It's no joke. Most of the big corporations you buy from contain their ingredients.

[@HH-le1vi]

​@@jarrodmagnusson4101 they absolutely don't and I can't stand Pizza Hut pizza.

[@Zero11_ss]

Pizza is so overpriced now I just make my own at home and it doesn't even cost $5 for a large pie. And I can put whatever toppings I want without getting ripped off.

[@djohanson99]

I love Domino's. Hawaiian. Yummy....wish I could order one but I am in jail using a tablet that ain't allowed to be in here. How I crackT their wifi.... social engineered one of the c.o's.

[@mercutiobr3814]

I really think Domino´s is one of the worst pizza´s you can get anywhere. And that fake Tracker? Wow...

[@All4shawarma]

Doorbell warning ⚠️

[@Becauseimme]

Dominoes used to taste like dish soap.

[@creativemindplay]

How often did you ingest dish soap?

[@BenLinn]

i grind my own wheat, you guys have no idea what fresh pizza dough actually tastes like

[@creativemindplay]

You collect your own yeast from the air too?