Domino's tests $1 delivery fee

[ShainaT]

DETROIT (Aug. 10) - Get the door - and bring an extra dollar.

Domino's Pizza, which grew into a giant in the industry on its promise of fast, free delivery, is now testing a $1 delivery charge in 350 of its 4,800 outlets and will decide by the end of the year whether to implement the charge nationwide.

Spokeswoman Holly Ryan attributes the fee to many costs, including the cost of ingredients. About a year ago, the rising price of cheese concerned many pizza makers. However, Ryan said Saturday that the cost of cheese is low right now, but the cost of food in general, combined with the cost of gas, utilities, labor and insurance, called for a price increase by Domino's.

She said the company had a choice about how to make up for its expenses: charge a delivery fee, raise pizza prices across the board, skimp on ingredients or fire employees.

Domino's chose the fee, and it isn't alone.

Pizza Hut, which tested delivery fees a couple years ago, now charges 50 cents for every pizza delivery. The Dallas-based pizza chain has 8,000 outlets in the United States.

One-hundred Domino's restaurants across the country started charging for home delivery in November. The fee was implemented at an additional 250 stores in February.

``It's still a very small number,'' Ryan said Saturday.

She said customers so far have shown little reaction to the change.

Doug Hill, a senior assistant at a Domino's in Ann Arbor, agreed.

``There hasn't really been any real negative feedback,'' Hill said. ``I think it's worked out pretty well.''

At the end of the year, the company will go over the response and impact and then decide whether to take the charge nationwide.

Domino's, based in Ann Arbor, recently reported second-quarter earnings of $41.6 million, an increase of 13.9 percent over the same period last year. The privately held pizza maker had sales of $904.3 million for the period ended June 16, a 6 percent increase over the year-ago period.


Geez!! This is not good news!


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[3tbear]

If it saves employees jobs, I'm all for it! It's rough out there, so many places are laying off and the pickings are slim.

[kat]

Our Pizza Hut has always charged a $2.50 delivery fee, so we never have them deliver. Now I just noticed that we must be one of those "test markets" because the Domino's ad in yesterday's paper says there's a "convience fee" for delivery. That burns my butt because Domino's has smaller pizzas than anyone else - they're large is a medium at most places.

It's a good thing that there are still seven other pizza places to choose from that charge NO fee to deliver!


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[aprilgail]

They could give the pizza away for free and I STILL wouldn't get it LOL......they have the WORST pizza anywhere in NY!!!

[Schwisow]

I was just gonna' say that they started skimping on ingredients quite a while ago. After the last one that we ordered, we said "never again" . I go to Papa Murphy's and get the take and bake, lots more pizza for about half the cost!


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[pandybat]

We already have two Dominoes Pizza places within a 5 mile radius of our house. And they are building another one just up the road from us now. My BIL who pumped the concrete for the building said that the contractor told him that it was costing a little over $100,000 for them to build that store. Maybe they should consider cutting back on opening new stores. Especially since we already have two in such a small area. I wonder who is the brains behind some of these decisions sometimes. gEEsh!

[SkyeJaz]

First, I happen to like the convenience of Domino's pizza and I live only about 1/2 mile from my nearest one. I like the convenience of having pizza delivered (and I really like the cheezy bread!!)

Second, I agree with the other poster above, I thought that they already HAD decreased the size and amount of toppings on their pizzas...no big deal to me, the kids still eat it (except the cheezy bread- that's mine!!)

Third, I already tip my delivery person quite well, usually 4 or 5 dollars...so I'm a little torn on the delivery fees.

If they institute them here, I'll just either: go get it myself (after all, I can walk there in less time than it takes for them to deliver) or I'll tip the driver less (sorry to my delivery person!) or, I'll have hubby pick up the pizza on his way home at the REALLY GOOD pizza shop elsewhere in town!! hee hee- either way- I don't have to cook!! (and my waste can live without cheezy bread!)