How Domino’s is taking on tipping fatigue

Would you tip if you got a tip back? Domino’s is testing that notion in a new campaign that takes on tip fatigue. When a customer tips their delivery driver $3 or more online, Domino’s will give them a $3 coupon towards an online delivery order for the following week. The campaign comes as consumers are feeling overwhelmed by what has been dubbed the guilt-tip boom, marked by a rise in electronic payment screens that ask for tips on everything from a cup of coffee to a takeout order. Buyers are feeling the pain of inflation, higher food prices and student loan repayments, making tip demands even more intolerable. It has sparked hot takes and debates online about when it’s ok not to tip or what industries should always get a tip. “There’s no doubt that you can feel a collective sigh when the subject of tipping arises, and the average consumer is starting to feel some real tipping fatigue,” said Hailey Simon, associate creative director at WorkInProgress, the agency behind the campaign. “But we saw this as an opportunity to show our gratitude for the customers that continue to tip their hard-working delivery drivers.” See all of Ad Age’s 2024 Creativity Award winners here The new ads show a man encountering tip screens in increasingly ridiculous scenarios—at the gym, the grocery store, trying on clothes, even his wedding—showing how rampant tip culture has become. “Domino’s drivers have been hustling to deliver hot, delicious pizzas since 1960, and we love that customers have been tipping them for their great service since day one,” said Kate Trumbull, Domino’s senior VP and chief brand officer. “But these days, everywhere you go, there’s a tip screen. The pressure to tip is real, even when no extra service is provided. So, we decided to flip the script and show our appreciation by tipping customers back.” This isn’t the first time Domino’s has tipped customers. In early 2022, the chain’s Carryout Tips also gave customers a $3 coupon towards their next pickup order. The move was a way to cut down on deliveries ahead of the Super Bowl, and encourage customers to get their pizzas themselves. Domino’s “You Tip, We Tip” campaign will run across linear TV and streaming, digital, social media and print through August. The campaign could drive more sales as consumers order their discounted pizzas. Domino’s U.S. same-store sales grew 2.8% in the fourth quarter of 2023, after declining 0.6% in the third quarter. By comparison, Pizza Hut’s U.S. same-store sales were down 4% in the fourth quarter, and Papa Johns’ North America comparable sales were up 2% in the fourth quarter.

How Domino’s is taking on tipping fatigue

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