CFO Jeffrey Lawrence said delivery and carryout mix have held relatively steady on average during this crisis. Weekday sales are up significantly, while weekends have decreased. Lunch and dinner occasions higher, late night more pressured. And, overall, Domino’s is accepting much larger order sizes throughout the week as consumers try to make food last.
Similar to comments made by Chipotle CEO Brian Niccol earlier in the week, Allison credited day-to-day routine attrition for the bump. “As time goes forward, people start to get a bit tired of cooking and eating the same thing. Some of the pantry loading that they've done, it starts to bleed down a bit over time. I also think we, and I suspect the rest of the industry, probably are seeing some near-term impacts here from some of the stimulus dollars that have gone out,” he said.
Those are the external factors. Domino’s has also helped itself, Allison said, by pivoting quickly to the aforementioned contactless options. The chain also redirected advertising “quite significantly” to focus on these efforts, “which are very important to customers right now to have a safe and pleasurable food experience for their families,” he said.
Kantar recently reported that that ad spending from February 2 through April 11 for food delivery companies totaled $269 million, down 5 percent compared to the equivalent 10-week period in 2019. It said Domino’s, the top spender, boosted ad spend during this timeframe by 9.7 percent to $80.1 million.
Over the past six weeks or so, Domino’s marketing has produced roughly an ad per week.
Generally, Lawrence said, the shifts in ordering Domino’s has observed lately aren’t fancy insights. They’re losing business thanks to sporting events going dark. People gathering around the TV to watch the big game? Those occasions aren’t there. The same is true of office parties.
Meanwhile, when people do order, they’re selecting for multiple people and dialing up more food because they’re hoping to stretch it out.
“Although I will still tell you, it is early in this crisis. We just don't know how that consumer behavior will ebb and flow as we continue through this and get out of this,” Lawrence said.
“But what I can tell you, as Ritch just alluded to, is we believe that the global pizza industry is super resilient,” he added. “People are going to want eat pizza, before, during and after this crisis, and there's no one better positioned with our franchise partners around the world to hopefully fill that demand than we do.”
Allison said Domino’s has “absolutely” seen an uptick in new customers over the last few weeks. Just given the availability, or lack thereof, of restaurants and food types, the brand is getting a shot with some customers who weren’t doing business with Domino’s before. And given the rise in digital business, Allison added, the chain is actively working to migrate as many customers as possible to its Piece of the Pie Rewards platform to capitalize on the value push among today’s consumer.