Patching Potholes and Clearing Snow... Why Are Pizza Companies Wasting Money? [Curiosity Lab]

Domino's Pizza Supports Road Repairs Since 2018
Providing Repair Funds to 50 States to Fill Potholes
Delivering Warm Pizza Safely + Social Contribution
$500,000 for Snow Removal Equipment to 20 Locations in 2023
Successful Marketing Drives High Performance Results

A scene of road repair supported by Domino's Pizza
[Photo by Domino's Pizza]

Wilkes-Barre, Pennsylvania, USA, is a small city with a population of just over 40,000. Although the decline of the coal industry has diminished the city's vitality, heavy snowfall in winter and nearby ski resorts keep the local economy running through tourism. The city often experiences traffic congestion caused by road repair work filling potholes scattered throughout the streets. Residents have long been dissatisfied with the numerous potholes, as they damage vehicles and pose significant accident risks. With the city budget insufficient to cover all repairs, a pizza company stepped in to fund pothole repairs. Domino's, the largest pizza chain in the United States, supported road paving in the area in 2018. Using the funds, four workers filled 300㎡ (about 90 pyeong) with 3 tons of materials including asphalt concrete. In the same year, Des Moines, Iowa, also received help from Domino's to repair over 200 potholes across 40 roads. Except for Hawaii, all 50 U.S. states have received at least $5,000 in road repair support from Domino's.

Domino campaign phrases written on the road after road repairs
[Photo by Domino's Pizza]

Why does a pizza chain care about road repairs? The campaign is called "Paving For Pizza." Domino's determined that good road conditions are essential for delivering pizzas quickly and safely to customers. Instead of simply giving grants to local areas, there is a condition: Domino's advertising must be displayed on the repaired roads. On the left side of the patched road is the campaign name, and on the right side is the phrase "OH YES WE DID." This campaign is regarded as a successful marketing strategy that benefits the community while making pizza takeout and delivery services easier.

Domino's Pizza informs on the campaign homepage "Compensation for Pizza" that the appearance of the pizza inside the delivery box varies depending on road conditions. The photo shows a pizza damaged in the worst disaster situation.
Photo by Domino's Pizza

Domino's has taken a step further by launching the "Plowing For Pizza" campaign in 2023 to clear snow for pizza delivery. This idea was conceived as delivery demand surged during the COVID-19 pandemic. The company provides $25,000 each to 20 cities, totaling $500,000 in support. In addition to the grants, selected areas receive specially made Domino's branded winter gear such as hats and scarves, along with pizza gift cards worth $200. Another example of a public interest campaign is the "You Tip, We Tip" initiative. In response to growing dissatisfaction over skyrocketing tips, Domino's matches the tip amount given by customers with points. For example, a $3 tip earns $3 in points.

Domino's Pizza campaign supporting road snow removal following road repairs
[Photo by Domino's Pizza]

Thanks to these marketing efforts, Domino's has received positive evaluations in both performance and reputation. Last year, sales were $4.48 billion, a 1.3% decrease from the previous year, but net profit rose 15% year-over-year to about $520 million. The profit margin stands at 12%. The U.S. business media outlet Fast Company named Domino's the most innovative company in the rapid response category for 2024 for the second consecutive year. In the first quarter, sales reached $1.085 billion, up 5.88% from the same period last year. Quarterly earnings per share (EPS) were $3.58, significantly exceeding market expectations of $3.39. Founded in 1960, Domino's operates over 20,000 stores in more than 90 markets.