DPZ – Broadening its Menu and Relevant Dayparts

Domino’s recently announced the national roll-out of its new oven baked sandwiches, priced at $4.99. I have written about the success Subway has had with its $5 price point from a traffic standpoint so these new sandwiches could really help to drive traffic for DPZ (relative to the overall QSR pizza category, which has experienced negative traffic trends for the last 6 quarters, according to NPD data).

Although the sandwiches will not generate the same margins as a one-topping pizza, they should provide incremental business during the lunch daypart and add to the overall ticket. President of Domino's USA Patrick Doyle stated, "This launch springboards Domino's into the lunch business by providing a product that is high quality, priced right and aimed at convenience-minded people without a lot of time. Of course, sandwiches are also available any time our stores are open.”