& # 39; Some Random Third Parties & # 39; does not deliver our pizza
As a competition with third-party supplier services, Dominos CEO Ritch Allison opposes the idea that the pizza chain should outsource the delivery.
" We have a loyalty program with 20 million plus active members, "said Allison to analysts on the quarterly Wednesday. So it's just not clear to me why I will give up the franchise margins or give up the data in our business to a third party who will eventually use it against us. "
Restaurant chains such as McDonalds, Starbucks, Chipotle Mexican Grill and Yum Brands & # 39; Pizza Hut have all partnered with third-party vendor services to attract consumers in search of simpler dining options. does not share the delivery services most consumable data and takes a high commission fee, usually between 1[ads1]5% and 30%.
Allison has long held that the pizza chain continues to deliver its own pizza in the US without the help of Uber Eats or DoorDash because it wants to control the quality On the food, however, he has usually separated from the top so heavily on the competition, Domino has collaborated with third-party services in some international markets, which has resulted in mixed results.
"It is absolutely critical in my mind that we control the quality and the security of our product against handover to some random third parties and then have no visibility in what is happening m ed the food before it reaches the customer, says Allison Wednesday.
CFO Jeff Lawrence said "aggressive marketing" from third-party services put pressure on the same sales in the US in the quarter. Uber Eats and DoorDash launched their first national advertising campaigns, and some restaurants that partner with third-party delivery services have made a free or reduced fee to promote the new service. The Pizza chain reported a revenue growth of 3.9 per cent in the same store, which was not according to the Wall Street estimates of 4.2 per cent.
Dominos' stock rose 9% after the company had an income that increased expectations. The pizza chain earned $ 2.20 per share during the first quarter, beating Wall Street's estimates at $ 2.09 per share. And while America's same store growth was weaker than expected, many investors expected the numbers to get worse.
