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Domino's CEO On Pizza Chain's Steady Demand Tailwind

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Domino's CEO On Pizza Chain's Steady Demand Tailwind

Domino's Pizza, Inc. (NYSE: DPZ) has seen a "steady tailwind in demand" since the start of the COVID-19 pandemic, CEO Ritch Allison said Monday on CNBC's "Closing Bell."

Delivery Boom: The pandemic drastically shifted consumer eating preferences toward delivery options, and Domino's certainly isn't the only pizza chain to experience a "substantial" lift in demand, Allison said.

"As a brand we put in a lot of time and money into innovation around off-premise and around digital," the CEO said. "We were very well-positioned at the start of the pandemic and it has just accelerated some of those changes in our business."

This has some investors concerned a vaccine to protect against the novel coronavirus will erase at least part of the demand for delivered food. Domino's expects at least some customers will want to get back to restaurants and the full impact can't be quantified.

Related Link: Pizza Hut President: 'This Environment Is Really Poised Well' For Us

No Third-Party Delivery: Domino's is among the select few national chains with no ties to third-party delivery services, the CEO said. This allows Domino's to have full control of the buying experience from order to delivery.

"We really feel like it's important for us to own that customer relationship," he said.

Perhaps more important, Domino controlling its own digital platform translates to better economics for its franchisees, he said.

Meanwhile, rival pizza and other fast food chains are embracing third-party platforms that may allow them to compete on a more equal footing with Domino's delivery capabilities.

Domino's is well aware of these trends and remains focused on investing in innovation with a focus on "being great on execution every day" and delivering "terrific value," Allison said. 

Courtesy photo. 

 

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