After suffering from delivery stagnation in the post-pandemic era, Domino’s Pizza appears to have finally found its footing again after implementing its multi-pronged “Hungry for More” strategy. The Ann Arbor, Mich.-based pizza chain reported 2.8% U.S. same-store sales growth for the fourth quarter ended Dec. 31, 2023, largely attributable to growth of both its delivery and carryout sectors, though total revenue gains were only modest.
The delivery sales improvement was actually noted before Domino’s began feeling the full effects of the company’s historic partnership with Uber Eats, which was first announced last July.
“Clearly customers want value and driving profitability for our franchisees while providing value to our own channels is one part of our barbell strategy while tapping into the aggregator marketplace,” Domino’s CEO Russell Weiner said. “We’re very excited about this new sales layer, which we believe is a different and largely incremental customer that we have not been able to reach in the past. As we are now fully rolled out across our US system, we've gone live with the marketing… and we expect those orders to continue to grow throughout the year.”
Weiner said the company expects to finish 2024 with a 3% sales mix of Uber orders. Another key aspect of Domino’s comeback is its new loyalty program, which was rolled out in September, and has added three million members since its launch. Q4 2023 was the first full quarter with the new Domino’s Rewards program, which added tiered membership options and the opportunity to earn more rewards faster than in the past.
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