Domino's Pizza new promotion encourages tipping even more

new york Americans are being asked to tip on digital screens for everything from a cup of coffee to self-checkout at the grocery store, and many are unhappy with the new tipping culture.

Pizza chain Domino's is aiming to capitalize on that outrage. However, this does not mean eliminating tips. Instead, Domino's Pizza is encouraging tipping even more.

Domino's Pizza has launched a promotion that will give customers $3 off future online delivery orders for every $3 or more they tip Domino's Pizza delivery drivers. Domino's Pizza's “You Tip, We Tip” deal runs until mid-September.

Domino's Pizza knows that customers are tired of tipping.So we're trying to encourage more tipping.

Domino's Pizza is capitalizing on dissatisfaction with tipping culture to increase sales and compete for delivery drivers.

Justin Sullivan/Getty Images/CNN File via Newsource

“At Domino's Pizza, we know there's a lot of pressure to tip these days,” the narrator says in a cheeky new commercial that shows people being asked to tip at grocery stores, gyms and even weddings. said in the. “At Domino's Pizza, we want to say 'thank you for the tip' by giving back the tip.”

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For Domino's Pizza, promotional strategies serve several purposes.

Kimberly Whitler, a marketing professor at the University of Virginia's Darden School of Business, said in an email that the ad campaign is a “clever” way for brands to engage with consumers.

“When ads connect with consumers about meaningful social issues in a humorous way (a minister asking for a tip at the end of a wedding is smart), it increases the chances of a breakthrough,” she says.

Second, the $3 promotion could help Domino's Pizza increase sales. Customers are looking for deals that will save them money after three years of rising prices, largely due to the Covid-19 pandemic.

Third, the ad is a worker recruitment strategy, said RJ Hottovy, head of analytics and research at data analytics company

“The competition to attract drivers is getting more intense,” he says. “Domino's could point to this as a way to recruit new drivers while keeping existing drivers happy.”

Domino's Pizza did not respond to CNN's request for comment about the ad or its compensation.

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Some studies show that while Americans are tipping less, they are being asked to tip in more places. Tipping fatigue is a problem for both Domino's Pizza delivery drivers and Domino's Pizza's business model, which derives a significant portion of their income from tips.

“Tips make up a large part of our salary and are very important to delivery drivers,” said one Domino's delivery driver in Florida, who requested anonymity because he was not authorized to speak to the media. told. “You lose employees and have high turnover because of low or no tips.”

But Saru Jayaraman, president of the advocacy group One Fair Wage, said Domino's campaign was designed to avoid Domino's from paying employees the traditional wage and instead tip most of their salaries. It is seen as a way to direct customers in the form of

Domino's Pizza delivery drivers' salaries are tied to tips. Domino's Pizza, like most companies in the restaurant and hospitality industries, pays delivery workers what is known as the “minimum wage” for tipped workers in 43 states, according to an organization advocating for an end to the practice. Jayaraman said.

The federal minimum wage for tipped employees is $2.13 per hour, which is lower than the federal minimum wage of $7.25 per hour for non-tipped employees, but higher for tipped employees in many states. They demand basic wages. If a server's tips total less than the federal minimum, the law requires the employer to make up the difference. But this doesn't always happen. Wage theft and other wage violations are common in the service industry.

She said Domino's Pizza's ad campaign is a way for the company to “incentivize people to tip more, rather than paying employees the actual minimum wage with tips.”

However, Domino's drivers said they were “grateful” for Domino's promotional campaign, saying they would be willing to cut back on hours or reduce their income if Domino's increased wages. He was concerned that this might be the case.

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