Delivery Sales DROP – Customers PICKUP!

Domino’s Pizza customers are increasingly choosing to pick up their orders rather than opt for delivery as economic pressures mount, even as the company expands its delivery partnerships.

At a Glance

  • Domino’s US delivery comparable sales fell 1.5% in Q1 2025, while carryout business rose 1%
  • Customers are choosing self-pickup to save money amid persistent inflation and tariff concerns
  • Overall comparable sales dropped 0.5%, falling short of market expectations
  • Despite challenges, Domino’s maintains its 3% US sales growth forecast for 2025
  • The company is expanding delivery options through new partnerships with DoorDash and Uber Eats

Economic Pressures Driving Consumer Behavior

Domino’s Pizza is experiencing a significant shift in consumer ordering patterns as Americans increasingly opt to pick up their pizzas themselves rather than pay for delivery. This trend began emerging in 2024 as customers sought greater value in their food purchases and has continued into 2025. For the first quarter ending March 24, delivery comparable sales in the United States declined by 1.5%, while the carryout business saw a modest growth of 1% during the same period. These figures highlight how economic considerations are reshaping customer behavior in the fast-food industry.

The pizza giant’s overall comparable sales fell by 0.5% in the first quarter, slightly below market expectations. This performance reflects broader economic pressures affecting consumer spending habits, particularly among lower-income households who make up a significant portion of Domino’s delivery customer base. With persistent inflation and growing concerns about potential price increases from US tariffs, many customers are actively looking for ways to reduce their food expenditure without completely eliminating restaurant meals from their budgets.

Strategic Adaptation and Partnerships

Despite the challenges in its delivery segment, Domino’s remains optimistic about its growth prospects. The company continues to maintain its forecast of a 3% rise in US comparable sales for 2025, though executives acknowledge this projection depends heavily on macroeconomic conditions. To adapt to changing market dynamics, Domino’s is strategically expanding its delivery options through new partnerships with major third-party delivery services, aiming to capture customers who prefer these platforms despite their higher costs.

In a significant business move, Domino’s is finalizing a partnership with DoorDash, building upon its existing relationship with Uber Eats established earlier this year. This multi-platform approach represents a notable shift in Domino’s strategy, which had historically relied primarily on its own delivery infrastructure. The expansion into third-party delivery services acknowledges the reality that many consumers continue to use delivery despite economic pressures, prioritizing convenience even when it comes with additional costs.

Industry Implications and Future Outlook

The changing dynamics at Domino’s may serve as an early indicator of broader shifts in the food delivery ecosystem during periods of economic uncertainty. Interestingly, Uber’s CEO has suggested that delivery costs might actually decrease during a recession as more people turn to gig work with services like Uber, potentially increasing the supply of delivery drivers. This potential cost reduction could eventually make delivery more affordable for budget-conscious consumers if economic pressures persist or worsen.

For Domino’s, balancing its traditional carryout and delivery business with new digital partnerships represents both a challenge and opportunity. While the immediate shift toward carryout orders impacts current profitability, the company’s strategic partnerships with major delivery platforms position it to maintain relevance with digitally-oriented consumers. As the company navigates these changing consumer preferences, its ability to provide value across multiple ordering channels will likely determine its success in an increasingly competitive and economically sensitive fast-food landscape.

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