Domino’s offers $ 50 million in free food to take on DoorDash

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The pizza chain announced a “Surprise Frees” promotion on Monday, offering customers a chance to receive free food to counter delivery apps like UberEats and DoorDash. Domino’s called the additional costs from competitors a “disappointing surprise”.
“Other food delivery apps charge customers hidden city or service charges,” Domino’s (DPZ) said on its website. “Not Domino’s. We charge customers a straightforward delivery fee because we believe the level of transparency is what customers want and deserve.”

Lucky Domino’s customers who order from the company’s website through November 21 could get an additional menu item at no additional cost, including pizza, cheese bread or chocolate lava cakes. Domino’s said free food will be added to one in 14 orders, giving customers a little over 7% chance of winning with every order. Winners will see the additional menu item on their order confirmation page.

UberEats, DoorDash, and other food delivery apps angered some customers for adding charges in some US cities right before payment. The extra charges are the result of local governments having suspended caps that limit the amount that third-party delivery platforms can charge restaurants in an attempt to help struggling businesses.

DoorDash has added shipping costs of around $ 1 to $ 2 to several US cities, including Chicago, Cleveland, and Denver. UberEats charged similar customer fees in Portland, Chicago, Minneapolis, and Boston.

In the United States, Domino’s has long resisted offering deliveries through third-party applications. On an earnings call in February, Domino CEO Richard Allison said the company “is having a little trouble understanding the long-term economics of some of the aggregation business” and that it ” made no sense economically “for franchisees to use the apps.

“In 60 years, we’ve never made a dollar delivering pizza. We make money on the product, but we don’t make money on delivery,” Allison said on the call. “So we just don’t know how other people do it.”

The offer of free food may also alleviate some concerns of Domino’s customers who are now waiting longer for their deliveries. Allison recently said delivery times had “slipped a minute or two” due to staffing issues. To help solve the problem, Domino’s is increasing wages, a tactic that has helped some restaurant chains attract employees.

– Danielle Wiener-Bronner of CNN Business contributed to this report.


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