Even in the best labor markets, food delivery was not the most solid business with margin concerns. Today, off-premises food demand continues to rise beyond 2020, making it even harder (and more important) for brands to find a solution, as it’s hard to find a driver’s workforce in restaurants and delivery services. ).
As part of that, Domino is an incumbent in the food delivery space and has sought various solutions to improve delivery problems. Most recently, on Thursday (June 23rd), Domino’s New Zealand drone delivery partner SkyDrop announced that it had completed production of a drone fleet for commercial delivery testing using a pizza chain. The trial will be published in the coming months.
“We believe that drone delivery will be an integral part of future pizza delivery,” Domino Group CEO and Managing Director Don Meij said in a statement when the trail expansion was announced in January. It states. “Customers benefit from the convenience of being able to deliver fresh, hot pizzas without touching their homes with electric drones, which also reduces traffic congestion and greenhouse gas emissions.”
Related: Domino’s Pizza drone flies again in New Zealand
As far as automating the delivery process, the pizza giant is looking not only at the air but also at the road. In the spring of 2021, the chain announced a partnership with Nuro, an autonomous delivery company that manufactures self-driving cars that operate on public roads, and began robot delivery in Houston, Texas.
read more: Domino and Nuro partners launch autonomous distribution
Even if Domino has delivered pizza to consumers’ homes for decades, the brand does not benefit from the delivery itself.
“I’m having a bit of a hard time understanding the long-term economy of some aggregator businesses,” Domino CFO Stu Levy said in a call with an analyst in February 2021. pizza. We make money with products, but we don’t make money with deliveries, so we don’t know how others are doing it. “
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In addition to finding ways to reduce the labor needs associated with fulfillment channels, Domino’s Pizza has recently been working to encourage adoption of pickup channels and effectively outsource delivery work to consumers. I did. In the most literal iteration of this initiative, the brand has announced a promotion that gives consumers a “tip” for online execution orders.
In a statement at the time, Art D’Elia, Brand Executive Vice President and Chief Marketing Officer, said the initiative “spent time and energy to act as their delivery driver.” He said it was designed to be grateful.
reference: Domino’Hint’Customers for Pickup in Push to Shift Delivery Labor to Consumers
This move will also help drive the adoption of brands’ digital ordering channels. According to PYMNTS’s monthly provider ranking of mobile order-ahead apps, Domino apps are Taco Bell, Starbucks, Dunkin, and others, which rank restaurant apps using a unique combination of public information and app usage data accessible to PYMNTS. Connected in 1st place’Top Mobile Order Offering.
Additional details: Top Mobile Order Ahead App Sees New Competition in June Provider Rankings