Domino’s Takes a Stand on Third-Party Delivery
By Sara Shaw • April 26, 2019
In order to maintain Domino’s quality and quick delivery speeds, the only people chief executive officer Ritch Allison trusts with the product are the chain’s own drivers. And that’s not going to change, no matter how big the third-party space gets.
“When I take a look at our U.S. business, I don’t see any need for us to go onto these third-party platforms,” he says. “We have an incredibly strong digital channel in our business. We’re far and away the digital leader in pizza. So, it’s just not clear to me why I would want to give up our franchisees’ margin or give up the data in our business to some third party, who will ultimately use it against us.”
Domino’s plans to push against third-party delivery pressure with its fortressing strategy, which allows the company to deliver pizza quicker and more efficiently by flooding markets with multiple locations. The strategy lifted Domino’s past 16,000 stores. In Q1 alone, Domino’s debuted 200 units—27 net in the U.S. and 173 net internationally.