Domino’s Pizza has undergone its first rebrand in more than a decade with the hopes of selling more pies in a market where fewer Americans are ordering takeout or eating at restaurants.
“We really haven’t updated a lot, and I think a lot has evolved in the way customers gravitate toward brands,” Chief Financial Officer Sandeep Reddy told The Wall Street Journal, in a report published Monday. “We saw an opportunity.”
While other fast food chains have struggled in recent months, Domino’s sales increased 6.2 percent from last year in the three months that ended September 7. Same-store sales in the U.S. also grew 5.2 percent during that time period, according to the report.
Some growth can be attributed to a new deal added to Domino’s menu in August, that consists of a pizza with any toppings for just $9.99. Domino’s, the largest pizza chain in the world, sells an average of four million pizzas a day, according to its CFO.
While Reddy declined to disclose how much Domino’s earned from the meal deal, he said the company likes to keep competition “on its toes” with exciting offers.
“The competition cannot sustain the level of prices that we’re able to promote at because they’re not profitable transactions for them over a longer period of time,” Reddy said.
The chain’s new twist on its beloved stuffed-crust pizza has been a draw for many customers. For the first time, Domino’s added mozzarella-filled crusts to its menu in March.
Those cheese-stuffed pizzas will also see a box upgrade. The brand, which has not had a revamp in 13 years, has come out with fancier boxes for more premium fare, like its stuffed-crust pies. While those pies will be housed in the new gold-and-black boxes, Domino’s will also use bright blues and reds on some boxes, with the brand’s famous domino piece logo on top of each.
Other updates to the brand include a new jingle, performed by country singer Shaboozey. All of the updates are expected to be rolled out in the coming months.
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It was not immediately clear how much Domino’s spent on its rebrand, though Reddy told the Journal it “wasn’t a huge amount” compared to the chain’s annual U.S. marketing budget of about $500 million.
While Domino’s has boosted sales, chains like Chipotle have seen fewer customers due to higher prices and growing financial worries among younger clientele.
Younger millennials and Gen Z, who once made up a quarter of the Mexican fast-casual chain’s sales, are dining out less overall due to rising student loan payments, unemployment and wages that haven’t grown to keep up with inflation.
The chain’s customer traffic decreased over the three months ending on September 30, and for a third consecutive quarter, the company cut its forecast for same-store sales growth.
“They’re just eating with us less frequently, and they’re eating at home more often,” Chipotle’s CEO Scott Boatwright previously told the Wall Street Journal.
Chipotle, viewed as a “healthier” option with a variety of customizable options including salads, burritos and bowls, is not the only fast-casual location to take a hit this year. Most young people in America are now eating out less as a way to save money as economic worries grow.
An October survey by accounting firm PricewaterhouseCoopers found that, out of 1,000 Gen Z and teenage respondents, over half said they planned to spend less at restaurants over the next six months.