Patrick Oconnell
While some sources suggest that Domino's offers Parmesan cheese packets as a side for an additional cost, some customers have expressed disappointment over having to pay extra for it. Others have mentioned that their local Domino's stores have stopped providing Parmesan cheese altogether. This inconsistency suggests that the availability and pricing of Parmesan cheese may vary across different Domino's locations.
| Characteristics | Values |
|---|---|
| Parmesan Cheese | Domino's previously offered parmesan cheese packets for free |
| Cost | A case of 500 packets costs around $40, which is a huge expense for stores |
| Revenue | Domino's revenues increased by 12% on average year-over-year from 2012 to 2019 |
| Profitability | Some stores did not profit for 5-6 years straight |
| Pricing | The "special" price of pizzas has not changed for almost 10 years |
| Alternatives | Stores offer "premium toppings" and charge more for them |
Explore related products
What You'll Learn
Cost: Domino's has to pay for parmesan cheese
Cost: Dominos has to pay for parmesan cheese
Some customers have expressed surprise at having to pay for parmesan cheese at Domino's. One customer on Reddit commented, "I wasn't aware that Domino's didn't give out parm or peppers anymore." Another customer on the same platform expressed their frustration at having to pay for parmesan cheese, stating, "Oof. Stingy fuckers."
The cost of parmesan cheese can indeed be a burden for Domino's franchises. A former pizza store owner commented on a Reddit post, explaining that they had to purchase cheese for their customers and that restaurant profit margins are already slim. They added that Domino's revenues increased by 12% on average year-over-year from 2012 to 2019, questioning the need for additional charges.
In response, a Reddit user claiming to be a Domino's employee explained the financial burden of providing free parmesan cheese. They stated that a case of 500 packets costs around $40, and when provided for free, they would go through 2-3 cases per week, amounting to $80-$100 per week or $320-$400 per month. This expense is significant, especially considering the thin profit margins in the pizza business.
To maintain profitability, Domino's franchises may choose to pass this cost on to customers, resulting in charges for parmesan cheese packets. This decision is likely influenced by the need to cover the expense of cheese and maintain profitability, especially in stores that have not turned a profit for several years.
While some customers may be displeased with the additional charge, it is important to consider the financial constraints faced by Domino's franchises. The cost of parmesan cheese is a contributing factor to the decision to either charge for it or discontinue providing it for free.
Parmesan Cheese Portions: 3 Oz Explained
You may want to see also
Profit margins: Cheese is expensive, and margins are slim
Profit margins in the restaurant business are notoriously slim, and cheese is an expensive ingredient. Domino's has to purchase cheese in large volumes, which is costly. To keep costs down, they use a blend of cheeses rather than pure mozzarella, which is cheaper and melts more evenly. This blend also has a longer shelf life, which is important for a large chain like Domino's.
Some customers have expressed frustration at being charged for parmesan cheese packets, but these also add up to a significant expense for the business. A case of 500 packets costs around $40, and a store might need 2-3 cases per week, totalling $320-$400 per month. This is a notable expense, especially when stores are already struggling to turn a profit.
Domino's has kept the price of their pizzas at a "special" rate for almost 10 years, while other costs have increased. As a result, owners are looking for ways to fill the gap, such as charging for premium toppings or increasing delivery fees.
The slim profit margins in the pizza business, coupled with the high cost of cheese, have likely influenced Domino's decisions around their cheese offerings and pricing strategies. They need to balance customer satisfaction with financial viability, which can be challenging in an industry with tight margins.
While some customers may be disappointed by the absence of free parmesan cheese, Domino's is navigating the challenges of maintaining profitability in a competitive market with slim margins.
Best Cuisinart Blade for Grating Parmesan Cheese
You may want to see also
Loss prevention: Domino's needs to fill the gap of rising costs
Domino's Pizza Inc. has been facing challenges due to rising competition, pandemic-related costs, and changing consumer trends. The company has incurred additional expenses for sanitization, sick pay, and cleaning equipment, amounting to $7 million in a quarter. To address these rising costs, Domino's has implemented several strategies for loss prevention and operational efficiency.
One key initiative is the development of a digital platform in partnership with Future Platforms. This platform includes a customer-facing app that provides real-time delivery tracking, enhancing customer satisfaction. The app also enables drivers to navigate efficiently, communicate with stores and customers, and optimize their routes, resulting in more deliveries per hour. The centralized system offers visibility into orders, staff availability, and delivery status, helping managers mitigate revenue loss and improve overall productivity.
Domino's has also focused on boosting takeaways and investing in its supply chain and technology. The company aims to adapt to the changing landscape, including the rebound of dine-in restaurants and the surge in online orders. By leveraging digital solutions, Domino's can streamline operations, enhance efficiency, and drive cost savings of £6.5 million annually in the UK and ROI alone.
To summarize, Domino's is addressing the gap of rising costs through loss prevention strategies such as digital transformation, supply chain investments, and operational efficiencies. By leveraging technology to optimize deliveries, track performance, and enhance customer experiences, Domino's aims to mitigate revenue loss and maintain its competitiveness in a challenging market. These initiatives demonstrate Domino's proactive approach to adapting to changing circumstances and addressing financial challenges.
Parmesan Reggiano Cheese: A True Italian Legend
You may want to see also
Explore related products
Premium toppings: Some stores charge more for toppings
Domino's pizza toppings fall into two categories: regular and premium. Regular toppings include classics like pepperoni and standard vegetables. Premium toppings, on the other hand, feature gourmet selections such as specialty meats and artisan cheeses. These toppings are considered "premium" because they bring unique flavours and textures to your pizza. For instance, bacon, chicken, steak, and feta cheese are considered premium toppings at some Domino's stores and may incur an extra charge of around a dollar.
The price of premium toppings can vary depending on the type of topping and the size of the pizza. For example, extra cheese pricing depends on pizza size and cheese type, typically costing between $0.50 and $1.50 per pizza. Similarly, specialty meats or fancy veggies usually cost more than standard toppings, with prices ranging from $0.75 to $1.50 per topping.
Domino's offers clear portion guidelines when customizing your pizza. Each topping is carefully measured to ensure consistent flavour and quality. Customers can choose from light, normal, or extra portions for most ingredients. This allows customers to match their taste preferences and budget accordingly.
Domino's also offers half-and-half topping options, which are perfect for sharing or satisfying different tastes on a single pizza. Additionally, they provide detailed nutrition information for all toppings, which can be found on their website, mobile app, or by inquiring in-store.
Parmesan Cheese: Pure Substance or Mixture?
You may want to see also
Customer expectations: Customers expect free parmesan cheese
Customers expect free parmesan cheese when ordering pizza, and this has traditionally been the case in the United States. However, some Domino's stores have started charging for parmesan cheese, which has led to disappointment and frustration among customers. This change has been attributed to the increasing costs of ingredients and the need for store owners to maintain profitability, especially with Domino's "special" pizza prices remaining unchanged for almost a decade.
Customer expectations for free parmesan cheese are rooted in the belief that it is a standard condiment provided by pizza restaurants. In the past, Domino's and other pizza chains have typically offered parmesan cheese at no additional cost, establishing a precedent that customers now expect to be upheld. This expectation is further reinforced by the perception that parmesan cheese is a fundamental component of the pizza-eating experience, enhancing the flavor and overall enjoyment of the dish.
Charging for parmesan cheese represents a departure from the norm, and customers may perceive it as a form of nickel-and-diming or cost-cutting by Domino's. Customers expect value for their money, and when they are asked to pay extra for something that was once complimentary, it can create a sense of dissatisfaction and negatively impact their dining experience. Moreover, customers may feel that the cost of a small packet of parmesan cheese is not worth the price being charged, especially if they are already spending a significant amount on their pizza order.
Domino's, like any business, needs to balance customer satisfaction with financial viability. While charging for parmesan cheese may help offset rising costs and maintain profit margins, it risks disappointing customers and potentially driving them towards competitors who still offer complimentary parmesan cheese. Ultimately, Domino's must weigh the financial benefits against the potential impact on customer loyalty and brand perception.
To align with customer expectations, Domino's could consider alternative approaches to managing the costs of providing parmesan cheese. For instance, they could offer parmesan cheese in bulk or grated form, allowing customers to help themselves to their desired amount. This self-service option could reduce waste and the number of individual packets required, thereby lowering costs without passing the expense directly to customers. Additionally, Domino's could explore partnerships with suppliers to negotiate better rates for parmesan cheese, enabling them to continue offering it for free without sacrificing profitability.
Provolone vs Parmesan: What's the Difference?
You may want to see also
Frequently asked questions
Domino's has stopped providing parmesan cheese due to the cost of purchasing and supplying it. The franchisee has to pay for condiments like parmesan cheese and red peppers, which can be expensive, especially for stores with a high volume of orders.
It is unclear if charging for parmesan cheese is company-wide or limited to specific locations. Some customers have reported being charged for parmesan cheese, while others have not mentioned this issue.
Yes, Domino's offers a variety of other toppings and sides that can be added to your pizza. You can also try their Parmesan Stuffed Crust pizza, which includes parmesan cheese in the crust.
