What is Happening?
As the coronavirus forces countless businesses to cut back on advertising, Domino’s Pizza is maintaining their advertising investment.
Introducing contactless delivery, and drive-up carry-out options, along with rigorous sanitation procedures the business has been quick to adapt and is already seeing the benefits.
In the first quarter ended March 22, same-store sales rose just 1.6%. But in the four-week period that followed, comparable sales soared by 7.1%, with the increase driven mainly by digital ordering.
Domino's has also seen changes in customer behaviour related to COVID-19:
- 💵 Fewer customers are using cash
- 📈 Sales are higher during the week but lower than usual on weekends
- 🌒 Late-night orders are down significantly
What Does it Mean?
Domino’s is about as well-positioned as a restaurant company could possibly hope to be for the current environment.
While there aren't gatherings of people or sporting events that typically drive purchase demand, it is clear that the business is responding well.
A focus on continuing to own the customer relationship, and not being reliant on aggregator platforms is benefitting the company — A lesson that all businesses can take from this.