Domino's Continues To Resist the Third-Party Delivery Craze

While most franchise brands in the QSR and fast casual space are eager to partner with third-party delivery providers, the notoriously tech-savvy pizza chain Domino’s isn’t so easily persuaded. 

The brand just opening the glass-paneled, new doors of its “Innovation Garage” to investors September 6 in Ann Arbor, Michigan, providing a chance to showcase all of the company’s tech-centric innovations, platforms, and products it believes will give franchisees an advantage in the segment. Third-party delivery partnerships were not one of them. 

Domino’s chief executive Ritch Allison hasn’t been shy about the subject, saying the company believes third-party delivery ultimately “is extracting profitability out of the restaurant industry for those players signing up,” according to QSR Magazine. Allison explained that top-line sales growth doesn’t necessarily equate to franchisees making more money. 

Instead of hopping on the third-party bandwagon like competitors Pizza Hut or Papa John’s, Domino’s is fighting back with new offerings. The chain is launching a 20 percent off promotion after 9 p.m. The late-night deal specifically targets the post-dinner and late-night daypart where quick-serves generate a good deal of third-party delivery sales. 

Domino’s is also fighting back against apps like UberEats or GrubHub with new delivery tech innovations meant to streamline in-house operations, including the rollout of motorized e-bike delivery drivers and even a self-driving car restaurant. 

As third-party delivery continues to change the landscape of the QSR and fast casual segment, Domino’s has clearly taken a stand and drawn a line in the sand.