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Startups, retailers, and brands have spent years refining their delivery models, aiming to cater to convenience-driven customers. Yet, Domino’s is experiencing a notable shift that reflects deeper economic challenges. More customers are opting to pick up their own pizzas instead of relying on delivery.
“Our carryout business is on fire,” CEO Russell Weiner told Business Insider in an interview. “This is something we didn’t even contemplate years ago.” This surge in carryout orders reveals a significant change in consumer behavior, likely driven by financial constraints.
In the second quarter, Domino’s reported a 7.9% growth in carryout comparable sales, far surpassing the 2.7% growth in delivery sales. This disparity underscores how inflation and rising costs are pushing many Americans to reconsider their spending habits.
Weiner explained that delivery and carryout customers typically have distinct priorities. “We see only about 15% overlap between our carryout and delivery customers,” he said. This highlights a growing divide between those willing to pay for convenience and those looking to save.
Delivery has become an “expensive convenience,” according to Weiner. Customers who choose delivery are often willing to pay extra fees and tips, while budget-conscious individuals are increasingly opting for carryout, realizing they can save significantly on these added costs.
Delivery services thrived during the pandemic as people stayed home and relied on platforms like DoorDash, Instacart, and Uber Eats. However, as inflation surged and life returned to normal, many customers began cutting back on delivery, viewing it as an unnecessary expense.
One TikTok user recently went viral after sharing how she unknowingly paid nearly $100 in markups on her Instacart groceries, excluding delivery fees and tips. This kind of experience is pushing more people to rethink their reliance on delivery services.
At Domino’s, this shift is also about control. Customers choosing carryout often do so to ensure accuracy and reliability. “This person’s like, ‘I don’t care if it’s out of my way, I’m going to pick it up because it’s going to be right,’” Weiner said.
Domino’s has also adapted to this trend by opening more locations. By reducing the distance customers need to travel, the company has made it easier for people to opt for carryout without feeling inconvenienced.
“They don’t want to drive past three or four pizza places,” Weiner said, pointing out how proximity plays a crucial role in winning over carryout customers. Convenience, in this case, is less about delivery and more about accessibility.
This shift in customer behavior reflects a broader economic reality. Rising prices and inflation have led many Americans to cut back on even small luxuries, such as delivery services. What was once a standard option for convenience is now being viewed as an avoidable cost.
Domino’s ability to draw in carryout customers shows how brands must adapt to changing economic conditions. By focusing on accessibility and affordability, the chain has found success even as financial pressures weigh heavily on households.
Ultimately, the rise of carryout over delivery highlights the growing impact of economic instability. As Americans grapple with rising costs, they’re making choices that prioritize savings, even if it means sacrificing convenience.
