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IPFS News Link • Business/ Commerce

WHY DOMINO'S GAVE OUT GIFT CARDS TO LOCAL RESTAURANTS

• By Jonathan Maze

Domino's is shining a light on restaurants' delivery fees by giving customers gift cards.

Specifically, operators gave delivery customers $50 gift cards to local restaurants in Boston, Phoenix, Louisville, Ky., Laredo, Tex., and Denver. The local stores gave out more than $100,000 worth of gift cards to 2,600 customers earlier this month.

"We love that Domino's has supported other restaurants and driven their customers to these mom-and-pops that could really use the help," Irene Li, owner of Mei Mei in Boston, said in a statement.

It's not the first time Domino's has used its marketing weight to drive business to other restaurants. In 2019, for instance, the Ann Arbor, Mich.-based pizza chain started giving loyalty customers points for visiting other pizza concepts.

This time, however, the company is using the cards to highlight the fees restaurants pay for third-party delivery companies like DoorDash and Uber Eats.

Domino's increasingly views such companies as major competitors. "Frankly, the biggest competition over the long term for us in delivery is that third-party aggregator channel," CEO Ritch Allison said in July.

The company has recently started publicizing the fees such companies charge to customers. Domino's recently had a campaign offering delivery customers "surprise frees," or free items added to their orders, to point out those fees.

1 Comments in Response to

Comment by JoRoderick
Entered on:

I worked for them. They pay the drivers below minimum wage on a technicality, and provide no benefits to the drivers. They are not 'staff' and considered disposable. In no way are they the good guys.



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