Value is the key to gaining share in the quick-service restaurant (QSR) space in today’s macroeconomic environment, Domino’s executives said Thursday (Oct. 10).
The pizza company gained share over the past year by offering “more for less” together with rewards that keep customers coming back, Domino’s CEO Russell Weiner said Thursday during the company’s quarterly earnings call.
“When we introduced our Hungry for MORE strategy back in December, we knew consumer spending would be pressured in 2024 and that the QSRs that offer the strongest value would win,” Weiner said. “That proved to be right, and at Domino’s, leaning into our strategic pillar of Renowned Value has been key to our success in 2024, especially in the U.S.”
Value will continue to be in demand from customers around the world due to macroeconomic and geopolitical issues, Weiner said.
While its competitors have also responded to the demand for value, Domino’s U.S. business saw its retail sales grow 6.6% in the first three quarters of the year, at a time when the QSR pizza category overall grew less than 2%, Weiner said.
Since launching Hungry for MORE, Domino’s has recorded four consecutive quarters of same-store sales growth and profitable order count growth, he added.
The Domino’s Rewards program, an improved loyalty program that was launched in September 2023, was another key contributor to these gains.
“Today’s order count growth drives tomorrow’s order count growth as well because the strength of Domino’s rewards brings members back for repeat purchases in the future,” Weiner said.
Looking ahead, Domino’s expects to see global retail sales growth of 6% for full-year 2024, about the same in 2025, and 7% in 2026 through 2028, according to a Thursday earnings release.
Domino’s opened the current quarter with its MOREflation deal — which Weiner said shows consumers that “Domino’s was in their corner, giving them more for less — and with a 50% off week. Next week, another value promotion, Emergency Pizza, which offers a free future pizza with qualifying orders, will go back on the air.
“Looking to Q4, Domino’s will give customers what they are demanding from their QSR brands: more,” Weiner said.
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