Americans are increasingly frustrated with the new tipping culture that has emerged, with digital screens prompting for tips even for minor transactions like a cup of coffee or self-checkout at grocery stores. Pizza chain Domino’s has decided to capitalize on this frustration by launching a promotion that encourages tipping even more. Customers who tip $3 or more to Domino’s delivery drivers will receive $3 off a future online delivery order as part of the “You Tip, We Tip” deal running through mid-September.
The promotional strategy serves multiple purposes for Domino’s. First, it allows the brand to engage with consumers on a meaningful societal issue in a humorous way, potentially breaking through to customers in a more effective manner. Second, the $3 promotion may help Domino’s boost sales by offering customers a way to save money in a time when prices have been rising due to the Covid-19 pandemic. Finally, the advertisement also serves as a labor recruitment strategy, helping Domino’s attract new drivers and retain existing ones in a competitive environment.
Some surveys show that Americans are tipping less while being asked to do so in more places, leading to tip fatigue for both Domino’s delivery drivers and the company’s business model. While tips make up a significant portion of delivery drivers’ pay and are crucial for their income, there are concerns that Domino’s is relying on tips to avoid paying traditional wages to workers. Domino’s, like many companies in the restaurant and hospitality industry, pays delivery drivers a subminimum wage for tipped workers in 43 states, which is lower than the federal minimum wage.
Critics, such as Saru Jayaraman, the president of advocacy group One Fair Wage, argue that Domino’s ad campaign is encouraging customers to tip more instead of paying their workers an actual minimum wage. This practice shifts the burden of wages from the employer to the customers in the form of tips and can lead to wage theft and other violations. However, some Domino’s delivery drivers have expressed gratitude for the promotional campaign, fearing that wages would be cut or earnings would go down if Domino’s raised base pay for workers.
Overall, Domino’s “You Tip, We Tip” promotion highlights the complexities and challenges of the tipping culture in America, where tipping is becoming increasingly expected in various settings. While the promotion may help drive sales and attract and retain drivers for Domino’s, it also raises questions about fair wages, labor practices, and the impact of tipping on workers’ livelihoods. As consumers navigate the new tipping landscape, it is essential to consider the implications of tipping on workers and the broader economy.
