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> On demand food delivery has several major problems that were all very predictable Hold on now, Domino’s is doing just fine. On a tear actually.[1] [1] https

> On demand food delivery has several major problems that were all very predictable Hold on now, Domino’s is doing just fine. On a tear actually.[1] [1] https://www.fool.com/investing/2018/07/19/dominos-pizza-extends-its-growth-streak.aspx https://www.fool.com/investing/2018/07/19/dominos-pizza-exte...

stochastic_monk 8y ago
It’s different when the food is standardized and limited in scope. It also helps that they have corresponding brick-and-mortar stores.
- drankula3 8y ago
  They are also a nationally recognized band, increasing the perception of legitimacy.
  - abalone 8y ago
    Their brand was absolute trash for awhile. Actually made the pizza taste worse (in blind studies). They turned it around.
- abalone 8y ago
  True, but OP claimed the entire category of on-demand food delivery has major problems. And 3 out of 4 of their concerns are about delivery logistics not menu standardization. Domino's turnaround shows that the food delivery model can work. (If that sounds funny, read up on how Domino's has improved customer sat regarding their pizza quality in the past few years. It's a great case study, incl. how to do marketing when your brand is in the dumps.)
kristjansson 8y ago
I’d imagine the waste factor for pizza ingredients is much lower than other (attempted) on-demand foods. If it didn’t get ordered, it doesn’t get made, and water, flour, pepperoni, tomato sauce, ... aren’t going to go bad in a day (or a week)
manigandham 8y ago
Pizza is incredibly high margin with low cost of goods and lots of upsell. It's fast and easy to make and delivery has been priced in over decades. In-store purchases also offset the cost because of the vertical integration. The model is sufficiently different enough to make it extremely viable, and perfectly scalable for the smartphone era.
notyourday 8y ago
The biggest product that Domino's sells is not pizza. It is a flag that says "Domino's" that is bought by the people who own the franchises. Domino's competitor is not mom&pop pizza. It is McDonalds/Subway/Arbys/etc So Domino's provides the backend support + marketing + development and for that it gets a hefty fee from whoever attaches Domino's flag to the location.

stochastic_monk 8y ago

It’s different when the food is standardized and limited in scope. It also helps that they have corresponding brick-and-mortar stores.

drankula3 8y ago
They are also a nationally recognized band, increasing the perception of legitimacy.
- abalone 8y ago
  Their brand was absolute trash for awhile. Actually made the pizza taste worse (in blind studies). They turned it around.
abalone 8y ago
True, but OP claimed the entire category of on-demand food delivery has major problems. And 3 out of 4 of their concerns are about delivery logistics not menu standardization. Domino's turnaround shows that the food delivery model can work. (If that sounds funny, read up on how Domino's has improved customer sat regarding their pizza quality in the past few years. It's a great case study, incl. how to do marketing when your brand is in the dumps.)

kristjansson 8y ago

I’d imagine the waste factor for pizza ingredients is much lower than other (attempted) on-demand foods. If it didn’t get ordered, it doesn’t get made, and water, flour, pepperoni, tomato sauce, ... aren’t going to go bad in a day (or a week)

manigandham 8y ago

Pizza is incredibly high margin with low cost of goods and lots of upsell. It's fast and easy to make and delivery has been priced in over decades. In-store purchases also offset the cost because of the vertical integration. The model is sufficiently different enough to make it extremely viable, and perfectly scalable for the smartphone era.

notyourday 8y ago

The biggest product that Domino's sells is not pizza. It is a flag that says "Domino's" that is bought by the people who own the franchises. Domino's competitor is not mom&pop pizza. It is McDonalds/Subway/Arbys/etc So Domino's provides the backend support + marketing + development and for that it gets a hefty fee from whoever attaches Domino's flag to the location.