Domino’s Pizza has announced a move that could change the rules of the game in the fast food market. Starting this week, the chain is offering a 20% discount on its entire menu for customers who order digitally and pick up their meal from the branch themselves.
This step makes Domino’s the first fast food chain in Israel to offer such a significant across-the-board benefit for self-pickup. A survey conducted by the company among over 20 fast food chains found that about 90% of them price items identically for pickup and delivery.
The decision comes as a direct response to the economic situation. As the company explains, the high cost of living “significantly reduces the disposable income of most population groups,” and Domino’s wants to offer “a particularly worthwhile alternative” for consumers.
The discount applies to the entire menu, including meals, with the exception of ice cream, drinks, post-checkout offers, and personal pizzas — which are already sold at a 25% discount compared to their delivery price.
The background to all this lies in the dramatic shift in delivery costs. According to the company, “Since 2020 there has been a sharp rise in delivery costs, which have nearly doubled and significantly reduced the ability to maintain accessible prices.”
The massive growth in demand for food delivery during the COVID-19 pandemic led to unprecedented demand for couriers. This, combined with the ongoing increase in the minimum wage and the resulting competition, has significantly raised courier wages.
Customers who choose self-pickup will enjoy a double benefit: A 20% discount on their meal and savings on delivery fees. On the other hand, customers who prefer to continue ordering deliveries will still be able to do so without change.
The chain believes that this move “will expand the volume of pickup orders and allow more customers to enjoy quality pizza at an affordable price.” Will we see more chains adopt a similar differential pricing model in the future? The answer depends on the success of the move and consumers’ reactions.