Dominos Pizza: delivery and takeaway giant to pass on low food costs to customers via increased menu discounts

• Domino’s plans to offer enhanced discount pizza deals to pass on lower costs to customers
• It has seen decreased food and energy costs
• The company reported a decline in orders during the first half of 2024, attributing it to a ‘slow start’ to the year
• Domino’s shares fell on August 6, 2024, with the company warning that underlying earnings are expected to be at the “lower end” of forecasts.
• Despite the challenges, Domino’s is optimistic about recovering customer confidence and aims to boost sales through better pricing
• The company is also planning to open 70 more in the current financial year

Domino’s has announced plans to pass on reduced costs to customers through enhanced discount offers.

The pizza business, which has 1,344 sites across the UK and Ireland, said it had seen a decrease in food and energy costs, though this has been partially offset by an increase in the national living wage.

CEO Andrew Rennie said that the company is transferring the benefits of lower food costs to customers through discounted offers.

“We’re rolling out more deals, like our £4 lunch deal and 50% off midweek deal,” he said. “We think with these deals and the quality of our product we are offering good value.”

It comes as the pizza delivery giant reported a decline in orders during the first half of 2024, attributing the drop to a “slow start” to the year.

As a result, the company’s shares fell on the morning of Tuesday 6 August, with Domino’s warning that its underlying earnings are likely to be at the “lower end” of projections.

But it expressed optimism about recovering customer confidence and aims to boost sales with better pricing strategies.

Rennie added: “Customer confidence is improving but we definitely think it is important for us right now to back our customers.”

Domino’s business has also been supported recently by its continued store opening plan. The company opened around 60 sites last year and said it is expecting to surpass this with 70 new stores for the current financial year.

Pizza fans can expect to benefit from increased discounts which aim to provide better value and attract customers as the company works to recover from a recent drop in orders and earnings.

Additionally, customers might see improved deals and offers as Domino’s tries to regain confidence and drive stronger sales.

What do you think about Domino’s new discount offers and their approach to boosting customer confidence? Share your thoughts and experiences with their recent deals in the comments section.