Cannes Lions

Local Frees

WORKINPROGRESS, Boulder / DOMINO'S PIZZA / 2022

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OVERVIEW

Background

With the rise of third-party food delivery apps and COVID’s impact on the restaurant industry, consumers have more food delivery options than ever. But while convenient, these apps hit both their customers and their partner restaurants with surprisingly high fees. What’s worse is that delivery app customers often believe they’re supporting local businesses by using these apps, while oftentimes that’s not the case.

With 95% of Domino’s stores owned and operated by independent franchisees, they know how hard it is to run a business and have seen the impact delivery app fees have had on restaurants in their local communities. Domino’s wanted to help some of these struggling restaurants, find a way to inform customers about the impact delivery apps have on restaurants, and show customers that ordering directly from restaurants is the best way to support them, all at the same time.

Idea

To inform delivery customers about the surprising fees their favorite independent restaurants face in order to use delivery apps, let customers know the best way to support those restaurants is to order directly from them, and support those restaurants at the same time, Domino’s launched a campaign called Local Surprises.

Domino’s purchased more than $130,000 worth of gift cards from restaurants in five cities across the country, and hand-delivered the cards to their own customers along with delivery orders. Over 2,600 Domino’s customers received a $50 gift card to another local restaurant, along with information about the impact delivery app fees have on local restaurants, why the customer received another restaurant’s gift card from Domino’s, and how using it to order directly is the best way to support that restaurant.

Strategy

Since the beginning of the Coronavirus pandemic, over 110,000 restaurants have closed, while food delivery app sales have more than doubled. Much of the delivery apps’ advertising communicates that using them means supporting local restaurants, and as a result, many delivery customers believe that. In reality, those food delivery apps take anywhere from 17%-30% of the revenue from each order placed on their platforms, and most restaurants’ profit margins per order are much smaller than that.

To inform delivery customers that the best way to support their favorite local restaurants is to order directly from them, rather than through a delivery app, Domino’s would find, interview, and purchase gift cards from multiple struggling restaurateurs, delivering the gift cards to their restaurants randomly to Domino’s own delivery customers along with information about how to best support those local restaurants.

Execution

Domino’s purchased $130,000 worth of gift cards from restaurants in five different cities and randomly distributed them with delivery orders. Over 2,600 Domino’s customers received a $50 gift card to another local restaurant, along with information about why the customer received another restaurant’s gift card from Domino’s and how using it to order directly is the best way to support that restaurant.

The direct piece became the center of a national television campaign, which ran from November 17th, 2021 until January 30th, 2022. A :30 spot ran nationally across network, cable, syndication and connected TV. A :60 spot was created for connected TV, and a long form version was featured online in organic and paid placements.

Outcome

The direct piece garnered such a positive response with consumers and in the press that it became the center of a national TV campaign featuring local restaurant owners, running for 10.5 weeks and contributing to a 4.6% increase in overall US sales as well as over 1 billion earned media impressions.

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