October 5, 2010
Domino's has started to promote on its website a deal of two medium specialty pizzas for $7.99. That's a $2 increase from its pre-existing promotion of two two-topping $5.99 medium pies, according to the Wall Street Journal online.
The approach reflects the No. 2 pizza company’s tiered pricing strategy. While slashed-priced pizzas like the $5.99 deal have helped bring in traffic, the company’s higher priced American Legends specialty pizzas go for $13.99 in key markets. The $2 price increase is a way to increase check averages and provide another, slightly higher price point option.
Executive vice president of communications and investor relations Lynn Liddle did not say whether the brand would promote the new bundled offering in TV or print media.
From the story:
"I wouldn't see this in any way as an indicator as anything beyond us having value pricing and flexibility to up-sell," Ms. Liddle said. "There's no doubt that everyone would love to have a bigger ticket but what we care about most is traffic."