Russell Weiner: Yeah. And I think on that the QSR space, Jeff, what I was talking about was really more order count. I think there’s just been pricing that’s been taken in the category and consumers are responding now. You’re seeing it in the results. And what I’m excited about for us is the pricing we’ve taken is really in the rearview mirror. And so, we can focus on driving value, profitable value, to both our customers and our franchisees. And look, I’m sure there’ll be others in the industry who are also doing the same, but I think we’ll be a little bit of an outlier there.
Sandeep Reddy: Yeah. And I just want to add one thing on this, because we — I talked about it in the prepared remarks and Russell referred it on smart pricing, the interesting about smart pricing is we took a lot of smart pricing in ’22 when the market was highly inflationary. The smart pricing in ’23 was almost taking no pricing. And that’s really what actually drove that value differential that is now really showing up. The number of questions we got right through ’23 on, do you have pricing power? Why you’re not taking pricing? Because everybody else is taking pricing. But we were really focused on two things. One is making sure customer value was maintained. Two, making sure that the flowthrough from a franchisee perspective had been restored. And that happened after the ’22, right, that we took. And so, we just kept on the straight and narrow and we were really teeing up for what ended up happening in Q4 and Q1.
Russell Weiner: Yeah, I think one of the things we talked about before was consistency of product. If there are two things that we’ve got this tremendous e-commerce business, so we know we can tell on conversion when we do things right and we do things wrong, product consistency is really important. The other thing is pricing consistency. People don’t want whiplash. They want to get what they expect and we took that in 2022 and now they’re getting what they expect and it’s profitable for our franchisees and we’re seeing that in numbers.
Operator: Thank you. And our next question comes from the line of Meredith Jensen from HSBC. Your question please.
Meredith Jensen: Yes, hi. I was — on prior calls, I’ve heard you all speak about the experience Domino’s has had internationally with third-party delivery. And now that it’s been rolled out here, I was just kind of wondering if you might speak a little bit about sort of the — maybe the consumer behavior differences that you’re seeing or some other things that have come up even anecdotally about the differences there. Thanks.
Russell Weiner: Yeah, sure, Meredith. I mean, really, what we’ve seen so far is some of it very in line with what we saw before — what we thought going in, which was these customers, as we said earlier, would be more single users, they’d be younger, they — especially on Uber, would be incremental to us. And Sandeep has talked about a few months into this, it looks like they’re about 75% incremental.
Sandeep Reddy: Two-thirds incremental.
Russell Weiner: I’m sorry, about two-thirds incremental. Yeah, sorry. About two-thirds incremental. And so, the thing on the other side is just more — just the promotional nature of it and the pricing and profit end up being kind of what we thought, but how we’re getting to it is just in a little bit of a different way. Anything to add?
Sandeep Reddy: No, that’s great.
Operator: Thank you. And our next question comes from the line of Alex Slagle from Jefferies. Your question please.
Alexander Slagle: Hey, thanks. Great to see everything coming together here. I had a question on the operations and the acceleration, delivery volumes, seemingly just starting and so far you’re able to drive the speed improvements, but as the volumes ramp further, I guess it’s more of these individual orders on 3P and perhaps more surges of demand at certain times. I mean, how much of your ability to keep up with the volumes and improved speed will require step up in hiring drivers versus productivity and technology-driven improvements or other opportunities that you see out there?
Russell Weiner: Yeah. Well, the nice thing about our business is, it scales really, really well. And so — I know you know this, but it’s not like we have to add a driver every time we add an order. And so, what we’re trying to do, and what we have done with a lot of these back of house improvements, is we’ve made these orders just more scalable, more leverageable. And so that’s part of the process. But secondarily, as we talked about, driving for Domino’s Pizza now is an attractive job. We were about to see a whole bunch of franchisees and more importantly, future franchisees at our rally in order to become a Domino’s franchisee, you need to start as a driver or a pizza maker. And so with the success of the brand, what we’re seeing is people attracted to both the driver job and the opportunity at Domino’s.
Operator: Thank you. And our final question for today comes from the line of Jim Salera from Stephens. Your question please.
Jim Salera: Hi, guys. Thanks for squeezing us in. I wanted to ask on the New York Style pizza innovation. Just as how that triangulates with some of the other promotions you guys have going on? And just any color you might have on driving either new use or new consumption from people that are discovering Domino’s on the third-party apps or potentially newcomers to the loyalty program and how you can tie innovation into those newer users.
Russell Weiner: Yeah, Jim, that’s a great question. New York is our first new product launch of the year, and one of the things that testing shows for us is this is a different customer. This is a customer who prefers a thinner, foldable pizza. This is a customer who really — ingredient quality is important to them. And so, we think bringing this into a portfolio is actually going to be attractive to folks who maybe are pizza lovers but are traditional hand-tossed maybe a little bit too thick for them in crust type. And so, it’s not — this is — and I should have said this in the remarks, this is not an LTO for us. And so, it’s important to know when we launch products, most of the time, it’s because we think they are permanent fixtures to our menu.
The other nice thing about New York style, which I like, and of course, we’re promoting it through loyalty with point, like you said, is our New York Style is available in all three sizes, in medium, large, and a lot of cases extra large. But being part of a medium means that could be part of our $6.99 Mix & Match and that was super important.
Greg Lemenchick: Thank you, Jim. That was our last question of the call. I want to thank you all for joining our call today, and we look forward to speaking to you all again soon. You may now disconnect.
Operator: Thank you, ladies and gentlemen, for your participation in today’s conference. This does conclude the program. You may now disconnect. Good day.
