Americans are feeling the pressure to tip on digital screens everywhere, from coffee shops to grocery stores. This tipping culture is sparking widespread frustration.
Domino’s Pizza is leveraging this frustration, not by cutting back on tipping but by encouraging it further. They've launched a promotional offer where customers receive $3 off a future delivery for every $3 tipped to their drivers. The "You Tip, We Tip" campaign will continue until mid-September.
Domino's new commercial addresses the tipping issue humorously, showing tipping requests at various unlikely places, including weddings. "At Domino’s, we know there’s a lot of pressure to tip these days," the ad's narrator explains. Domino’s uses the campaign to appreciate customers who tip.
This promotion serves multiple purposes for Domino’s. According to Kimberly Whitler, a marketing professor, the campaign cleverly engages consumers and stands out by humorously connecting with a current societal issue.
Additionally, the $3 tipping incentive could boost Domino’s sales, especially as consumers look for ways to save money post-pandemic. It's a strategic move to attract deal-seeking customers.
The campaign also functions as a recruitment tool. According to RJ Hottovy of Placer.ai, it helps Domino's attract and retain drivers in a competitive market. This is crucial as driver recruitment becomes increasingly challenging.
Domino’s did not comment on the campaign’s impact on driver pay or its effectiveness. However, surveys indicate a drop in tipping rates, even as tipping requests rise, affecting both Domino’s drivers and its business model.
One anonymous Domino’s driver emphasized the importance of tips, which constitute a significant part of their income. They noted high employee turnover due to inadequate tipping.
However, Saru Jayaraman of One Fair Wage criticizes the campaign as a tactic for Domino’s to shift the burden of fair pay onto customers. She points out that Domino’s, like many in the industry, pays a subminimum wage to tipped employees in many states.
This subminimum wage is $2.13 per hour, far below the federal minimum wage of $7.25 for non-tipped workers. Employers are supposed to compensate if tips and wages do not meet the federal minimum, but compliance is inconsistent.
Despite these criticisms, the Domino’s driver expressed gratitude for the campaign, fearing that wage increases could lead to reduced hours or lower earnings.