Domino's Pizza plans to pay customers tips to delivery drivers

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Domino's Pizza will give customers a $3 coupon on delivery orders if they tip their driver at least $3. | Image courtesy of Domino's Pizza.

Domino's Pizza requires tips from drivers.

The Ann Arbor, Michigan-based pizza delivery chain announced Thursday that it will hand out coupons to customers if they tip their drivers. To get his $3 coupon on his next online delivery order, the customer must tip at least his $3.

The program, called 'You Tip, We Tip', is the latest in a series of innovative deals aimed at encouraging return visits to the chain. Last year, the company gave out free pizza to customers who placed digital orders, and the promotion was successful in generating sales and traffic.

Before that, it offered “take-home tips” to customers who picked up their own orders. As in this case, in both cases the coupon can only be redeemed on the customer's next visit.

This campaign is targeted at delivery customers.

Pizza chains have struggled to increase delivery sales for a variety of reasons, including a driver shortage and competition from third-party services. And many customers are moving to cheaper take-out options.

Domino's Pizza is using this promotion to target customer dissatisfaction with the growing tipping culture. In addition to rising menu prices, more restaurant chains are asking customers to tip.

Kate Trumbull, chief brand officer for Domino's Pizza, said in a statement: “Domino's Drivers have been working hard to deliver hot, delicious pizza since 1960, ensuring that our customers know from day one that they love our great pizzas. I'm glad you're tipping me for my service.” “But these days, there are tip screens everywhere you go. The pressure to tip is real, even if no extra service is provided. So we're flipping the script and tipping customers back. I decided to show my gratitude by doing this.”

Pizza chains have seen sales slump due to the pandemic, with lower-income consumers frustrated by inflation turning to frozen pizza and other groceries while higher-income customers are turning to third-party suppliers. This is because you are paying to use the service.

As a result, many chains, including Domino's Pizza and Papa John's, are ramping up marketing efforts to boost sales.

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