Delivery or Carry Out?
Domino’s, the pioneer of the 30-minute delivery guarantee and pizza tracker, is no longer just the delivery giant you remember. In a surprising shift, Domino’s delivery business is shrinking. Rising inflation, along with the growing desire to avoid delivery fees and tipping, has led more customers to opt for a different choice: carryout.
In fact, carryout sales now account for 40% of Domino’s revenue—a key growth segment that’s keeping the brand relevant. Domino’s has doubled down on this trend with innovations like Apple CarPlay integration, making it easier for customers to order from their cars. What’s even more striking is how separate these two customer bases are: only 15% of people regularly switch between delivery and carryout.
Each segment requires different advertising strategies, e-commerce platforms, and logistics. This divide isn’t just about pizza. It’s a lesson in business growth, reminding us that different customer segments require different strategies
This distinction mirrors a challenge we face in the donor world: understanding payment preferences. While Domino’s navigates delivery versus carryout, we need to tackle traditional versus modern payment methods to help achieve “carry out” growth.
Let’s face it—checks are practically extinct in consumer transactions, accounting for just 3% of all U.S. payments, according to the Federal Reserve. For a large portion of the population, that number is close to zero and has been for years. These are strong, built-in payment preferences that can make or break response rate.
So, why send direct mail with reply forms and business reply envelopes to people who don’t write checks? Is it because you aren’t aware of their payment preferences? What if you could know these preferences with high accuracy—which is indeed possible—would that change your approach?
What would it take for you to start honoring these strong payment preferences?
Perhaps it’s time to stop offering delivery to carryout people.
Kevin
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