More pickups, fewer deliveries: Domino's US sales take a hit amid inflation

Domino's US delivery sales fell 1.5% in the March quarter as inflation-hit customers preferred to pick up orders to avoid extra fees; overall US sales dipped 0.5%

Domino’s customers in the US cut back on delivery orders during the first quarter of 2025, opting instead to pick up their meals in a bid to save on fees and tips. This behaviour, which began gaining momentum in 2024, has continued as cost-conscious diners prioritise affordability, Business Insider reported.

 

“While some Domino’s customers are willing to pay the fees and tip associated with delivery, others prefer to stop by a Domino’s location to pick up orders themselves and save some money,” CEO Russell Weiner had told Business Insider last year.

 

Quarterly sales

 

According to Domino’s earnings report released on Monday, delivery comparable sales in the US declined by 1.5 per cent for the quarter ended March 24. In contrast, the chain’s carryout business saw a 1 per cent increase in comparable sales during the same period.

 

 

Overall, Domino’s reported a 0.5 per cent drop in US comparable sales. “Which was slightly below our expectations,” CFO Sandeep Reddy noted during the company’s earnings call, as quoted by the news report.

 

Economic pressures weigh on delivery demand

 

The trend toward carryout is fuelled by persistent inflation and growing concerns about consumer budgets. In 2025, customers face additional uncertainty as US tariffs on imports threaten to further increase prices.

 

“Our delivery business continues to be impacted by macro pressures that are impacting the low-income consumer,” the report quoted Reddy as saying.

 

Despite these challenges, Domino’s maintains its projection for a 3 per cent increase in US comparable sales for the full year. However, Reddy cautioned that “in the event that macro pressures persist, it could put pressure on achieving this number”.

 

Delivery demand slows down

 

While delivery has remained popular even amid inflation over the past few years, shifting economic conditions may be changing that. Last week, Uber CEO Dara Khosrowshahi said that delivery costs on apps could decline during a recession as more people join the gig economy to supplement their income.

 

However, Domino’s latest results indicate that the delivery landscape may be entering a period of adjustment, particularly as recession fears grow in the US.

 

Despite a dip in delivery performance, Domino’s remains committed to growing its delivery business. The company announced plans to launch a partnership with DoorDash starting next month. It will also continue its existing collaboration with Uber Eats, which began in 2023.