How Domino’s new crust and deals revived its struggling business | Official Website of Louis Velazquez, entrepreneur, finance guy and tech innovator

Pizza was once the ultimate cheap meal, but now it has become so expensive, it feels like it should come with a side of gold.

Thanks to stubborn inflation, food prices have hit record highs, making once-affordable quick-service restaurants (QSR) chains harder to fit within some consumers’ budgets.

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While some pizza chains have responded by raising prices and banking on customers’ loyalty, Domino’s has taken a different path, prioritizing value and putting pressure on the competition to drive growth.

Over the last few months, Domino’s has rolled out various deals, including returning its “Best Deal Ever” promotion this summer, offering any pizza and toppings for $9.99.

It also made multiple menu additions, like the historic launch of its first-ever Parmesan Stuffed Crust Pizza, which it heavily promoted.

Domino’s unveils its strategy to win back customers and outdo rivals.

Image source&colon; Bloomberg/Getty Images

Domino’s Parmesan Stuffed Crust pizza boosts sales

Domino’s (DMPZF) launched its Parmesan Stuffed Crust pizza in March, and in only four months, it has exceeded expectations, attracting more customers and delivering higher satisfaction rates than its rivals.

In the second quarter of fiscal 2025, Domino’s U.S. sales rose 5.1%, driven by a 3.4% increase in same-store sales and net store growth.

The average ticket benefited from 1.4% pricing and the performance of its Parmesan Stuffed Crust pizza, which contributed to positive transaction counts.

While the Parmesan Stuffed Crust pizza cost more than most menu items, Domino’s made it available in a medium size rather than a large, enabling lower pricing to entice value-conscious consumers.

“A big reason we came out with the medium was because we knew that the competition wanted to react to us coming up with stuffed crust. The majority of them have larges, and the ability to react with competitive pricing versus a medium when all you have is a large is really, really difficult,” said Domino’s CEO Russell Weiner during the earnings call.

Overall, Domino’s outperformed the broader QSR pizza category, which had remained flat for the first half of the year, proving the success of its business strategy and product innovation.

Domino’s delivery sector grows after launching its DoorDash partnership

Another winner in Domino’s quarter was the launch of its partnership with DoorDash (DASH) in April, which played a key role in boosting delivery sales by 1.5%.

Although Domino’s has partnered with Uber Eats (UBER) since 2023, DoorDash is more impactful, since it generates nearly twice as many pizza sales.

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However, delivery wasn’t the only positive. Domino’s carryout comparable sales were up 5.8%, making the second quarter its highest ever for average carryout dollars.

“In the U.S., both delivery and carryout grew, driving meaningful market share gains within the U.S. pizza QSR category. We are now fully rolled out on the two largest aggregators and offer all the major crust types, including stuffed crust,” said Weiner.

“With what we believe are best-in-class unit economics, the largest advertising budget, a robust supply chain, and a rewards program that is bigger than ever, our business is well-positioned. We’ve never had more tools to drive long-term value creation for our franchisees and shareholders,” he added.