America's Largest Pizza Chain Is Raising the Price of This Popular Deal
Ordering from Domino's keeps on getting more expensive. During a recent earnings call, America's largest pizza chain reported domestic sales growth but delivered some news that will leave customers disgruntled, especially if they're on a tight food budget.
Domino's same-store sales in the third quarter rose 2% in the U.S. and the chain's revenue grew by 7.1%—a better showing than during the company's second quarter when it was battling staffing shortages, particularly in the delivery driver arena. According to Domino's, the price increases that it implemented earlier this year were responsible for the growth in sales.
In January, the $7.99 carryout deal got smaller and went digital only. In March, the pizza giant raised the price of its iconic Mix and Match deal from $5.99 to $6.99 for delivery customers. And now, the same price increase will be applied to carryout orders.
"Going from $5.99 to $6.99 on our delivery mix-and-match deal was the right move," said Domino's CEO Russell Weiner. "Given the continued inflation we have seen, our analytics indicate we should take pricing on our national carryout deal as well."
The Mix and Match deal lets customers order two or more items for $5.99 each, including medium pizzas, pastas, or sandwiches. The price increase will take effect on October 17.
The company is betting on carryout as the more popular option than delivery during inflation.
"We believe that inflation will impact delivery more than carryout due to the added expenses of fees and tips in that channel," Weiner told investors. And the numbers speak for themselves: Domino's same-store sales for carryout orders grew a whopping 20% in the third quarter, while delivery sales declined by 7.5% during that same period.
According to Restaurant Business, the chain has been "aggressively courting" carryout diners for years and believes this leg of its business will grow during inflationary times when customers turn to brands that provide the biggest bang for their buck.