Domino’s announced Tuesday it’s teaming with Microsoft to “create the next generation of pizza ordering and store operations.” Through the partnership, the chain will leverage Microsoft Cloud and Azure OpenAI Service to transform guest experiences through enhanced ordering, personalization, and simplification, the company said.
Domino’s, which deploys Microsoft as its primary cloud provider, has already experimented with data and AI capabilities in-store. Work on modernizing store systems, however, has begun to evolve into early stages of developing a generative AI assistant powered by Azure OpenAI Service. Domino’s said this will help store managers save time on daily tasks such as inventory management, ingredient ordering, and staff scheduling.
The generative AI assistant can also streamline pizza preparation and quality control with predictive tools, the brand added, aimed at “freeing store managers to dedicate more time to team member experience and customer service.”
“We are thrilled to co-innovate with Microsoft using Azure AI technology to advance the future of pizza ordering and store technology powered by secure, connected data and simplified processes,” Kelly Garcia, Domino’s executive vice president, chief technology officer, said in a statement. “Our collaboration over the next five years will help us serve millions of customers with consistent and engaging ordering experiences, while supporting our corporate stores, franchisees, and their respective team members with tools to make store operations more efficient and reliable.”
Domino’s noted it has “big plans” to use Microsoft’s AI capabilities, backed by Azure, to continue evolving as the guest does. As part of the alliance, Domino’s and Microsoft plan to establish an “Innovation Lab” that will pair both companies’ leaders with engineers to accelerate the time to market for smart store and ordering innovations.
“As consumer preferences rapidly evolve, generative AI has emerged as a game changer for meeting new demands and transforming the customer experience. Through our strategic partnership, Domino’s continues to be a customer-first leader in the quick service restaurant industry,” added Shelley Bransten, Microsoft corporate vice president, global retail, consumer goods and gaming industries. “There is no better or more integrated platform than the Microsoft Cloud for delivering an AI-enhanced and connected experience that will drive loyalty and engagement for millions of customers, franchisees, and employees.”
Domino’s said it expects to start piloting generative AI-powered solutions to stores and customers within the next six months.
Domino’s opened a net of 27 new outlets in the U.S. in Q2, raising the total number of stores to 6,735. In the last year, it shut down only 16 of its restaurants.
The chain reported 0.1 same-store sales growth, supported by an increase in average check. The price inflation for that quarter stood at 3.9 percent and is expected to remain similar for Q3, with a drop to approximately 2 percent in the final quarter of 2023.
Domino’s also recently launched a revamped loyalty program that appeals to a greater portion of consumers and allow for faster point redemption.
Other recent innovations include the continued rollout of 1,100-plus electric vehicles for drivers, expansion into third-party delivery, and a Pinpoint Delivery feature that allows guests to receive their order at any number of dynamically created hyper-local spots.