The last few years, regular fast food consumers will likely have noticed just how hard they are being encouraged to sign up for loyalty apps.
Everyone from McDonald's (MCD) to Yum Brand darling (YUM) Taco Bell has one, and most of the signups come with some kind of perk to encourage customers to join the program.
McDonald's will give customers a free large fries, hash brown, vanilla cone, McChicken, or cheeseburger for downloading its app and signing up for the MyMcDonald's Rewards program, as well as 1500 points to be used on food once they link a card to the app.
Burger King's Royal Perks program is similar, letting users earn one Crown for every dollar spent that can be redeemed later for food. However, its program also allows one upsize of fries, hash browns, fountain drinks, or coffee per day.
With all of the major players using the rewards systems, its hard to figure out exactly how to set your brand apart from the crowd. Combine that with falling sales due to recession fears, and you need a unique idea to get people to come in and buy food.
Domino's (DPZ) has thrown its hat into the ring with a new offer that not only addresses this year's financial worries, but calls them out by name.
What's Domino's Newest Offer About?
Domino's launching a deal where customers can get 20% off all orders placed online, in person, or for carryout for a limited time, and it's calling it the "Inflation Relief Deal."
"It's no surprise that prices are up on nearly everything, from milk to eggs, gas and even delivery services," Joe Jordan, Domino’s president of U.S. and global services, said in a statement. "Nobody has been spared from inflation, including restaurants. We want to give customers a break, as they’ve been emptying their pockets all summer long, but shouldn’t have to for delicious pizza.”
Wendy's (WEN) and Burger King have also promoted low-cost promotions, such as the 4 for $4 and the $5 Biggie Bag at Wendy's and the $5 Your Way deal at Burger King.
The Struggle To Find Delivery Drivers
Pizza chains are fighting a bigger problem, however. Issues with properly staffing their locations have caused big names to turn to third party delivery services to ensure that their products can make it safely to their destinations.
In its first quarter earnings call, CFO Chris Turner said that Pizza Hut's efforts to fulfill customer demand are "the most pronounced challenge that we have from a labor perspective in the U.S."
However, Yum Brands has more in mind to draw in customers than just a temporary discount. In September 2021, it purchased Dragontail Systems, a technology company with a focus on managing the entire food preparation cycle from when it's ordered to when it's delivered. The service utilizes AI to dispatch drivers at the same time the food is being prepared, as well as a tracker for the customer that allows them to keep an eye on the progress of their order being made and delivered.
