Americans are facing a new tipping culture that includes digital screens for tipping at various establishments, leading to frustration among many. Pizza chain Domino’s has launched a promotion to reward customers for tipping their delivery drivers more. For every $3 or more tip, customers receive $3 off a future online delivery order through mid-September. The campaign aims to engage consumers, grow sales, and attract and retain delivery drivers.
The ad campaign is seen as a crafty way for Domino’s to connect with consumers on a societal issue in a humorous manner. With consumers seeking deals to save money after rising prices due to the pandemic, the $3 promotion may help increase sales. Additionally, the advertisement serves as a labor recruitment strategy to attract new drivers and retain existing ones. It is a clever marketing tactic to break through the advertising clutter and engage with consumers.
Many Domino’s delivery drivers rely heavily on tips for their income, making tip fatigue a significant issue for them and the company’s business model. While some view the promotion as a way to avoid paying workers a traditional wage and shifting the burden to customers, others are grateful for the opportunity to earn more through tips. Domino’s pays its delivery drivers the subminimum wage for tipped workers in most states, with the federal subminimum wage set at $2.13 per hour.
The promotion has sparked a debate about the reliance on tips in the service industry and the need for fair wages for workers. Some see the promotion as a way to encourage higher tipping instead of paying a proper minimum wage with tips on top, potentially leading to wage theft and other violations. Despite the controversy, the Domino’s driver interviewed expressed gratitude for the promotional campaign and feared potential wage cuts if the company raised wages. Overall, the promotion highlights the ongoing challenges faced by workers in the service industry and the impact of tipping culture on their livelihoods.
