Domino’s Pizza, Inc. (NYSE:DPZ) Q2 2023 Earnings Call Transcript

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John Ivankoe: Hi, thank you. I wanted to talk about delivery in general, but maybe specifically, what you’ve learned or have taught or have picked up as part of Summer of Service in terms of how that could change some of the mechanics of the way that delivery is working to make you more efficient. Certainly, it’s good to hear about an improvement of two minutes in service times, it’s better than the one minute we were talking about before. But how big of an opportunity is that to significantly improve the service times? And if you can make some comments about your access of attracting and retaining delivery drivers, is that a headwind or tailwind at this point as you see it? Thank you.

Russell Weiner: Hey, John, thanks for the question. Yes, on the — I’ll start with the attraction of delivery drivers. We actually have more applications coming in now for delivery drivers than we did back in 2019. And so, we’re excited about that. And some of that is what’s translating to the improved services. We’ve got more drivers, and I haven’t really spent a lot of time talking about our electric fleet vehicles, and we’ve got about 1,000 of them coming on. And actually, we have over 1,000 non-electric fleet vehicles. And what that’s done is it’s really opened up — not every store really needs them, but the ones that are having trouble getting delivery drivers, there are plenty of people with driver’s licenses that don’t have access to vehicles that want to drive for Domino’s Pizza, and we’re really seeing that make a difference.

And so that’s part of why you’re seeing the current increase in momentum. And the desire with Summer of Service is to continue to drive that, in a few ways, right? One of it is just bringing it top of mind, every franchisee in the U.S. is coming to Ann Arbor to do this, and so driving the importance in top of mind, driving the accountability what it is that we expect from the delivery experience. And then lastly, driving some best practices. And these are best practices that already exist in the system, but new ones. And so, I’m really looking forward to sharing some of the things that we’re sharing with our franchisees now in Summer of Service during Investor Day. And what you’ll see is the circle of operations for a Domino’s Pizza today is very different than it was even just a couple of years ago.

And those changes are really impacting service. And then, there’s the technology aspect of it. And so, we’ve got systems — new systems that are going to be running in our store as part of our next-generation store system to really upgrade the level of service because we’re helping our franchisees and our team members more. And so these systems are running in many of our stores today. So for example, our — many of our stores are making pizzas before customers actually complete their orders online. And some of them are dispatching orders to drivers before those orders — those drivers are even back in the stores. And so if you’re making pizzas before people finish ordering them and you’re dispatching them in a way that doesn’t require your driver to come back into the store and find a parking spot, that’s going to help.

And so, Summer of Service is about best practices, but it’s about introducing these kind of AI-enabled suite of services to help our franchisees and team members do their job more efficiently.

John Ivankoe: Thank you very much.

Operator: Thank you. One moment for our next question. And our next question comes from the line of Brian Mullan from Piper Sandler. Your question, please.

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