Tipping Pays Off: Domino’s New Reward System for Supporters

A new promotional offer from one of America’s biggest pizza chains has called out the country’s growing frustration with unnecessary tipping. 

Tipping Fatigue?

Americans are experiencing ‘tipping fatigue’ en masse, as more and more businesses request more tips, more frequently. Companies like Dominoes are looking to address the exhaustion.

“You Tip, We Tip”

The iconic pizza chain has launched “You Tip, We Tip,” a new promotion that simultaneously encourages customers to tip their delivery driver, and pledges to ease the burden of tipping through a rewards system.

Rewarding Customers Who Tip

From April 29 through to mid-September, the company will reward customers who tip, by granting $3 discounts on future orders for every $3 or more tipped to delivery drivers.

Domino’s Announces New Promotion

The initiative was announced in a public statement by Domino’s senior vice president Kate Trumbull. “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,” the statement reads.

The Rise of Tipping

Trumbull went as far as to acknowledge the rising burden of US tipping culture, as everyday people are expected to tip higher amounts even as mounting living costs drain their paychecks.

“Everywhere You Go, There’s a Tip Screen”

“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,” it continued.

The First of It’s Kind

According to Domino’s, they are the first quick-service restaurant to employ an initiative where customers are tipped for tipping.

One Week Lifespan

While the promotion may be a welcome change for customers who feel beleaguered by tipping requests, Domino’s customers should keep in mind that “You Tip, We Tip” discounts have a short lifespan, expiring in just one week.

Clever Marketing

Regardless of the short time span, some experts believe that the new initiative is a clever marketing move by Domino’s.

A “Crafty” Campaign

Kimberly Whitler, a marketing professor at the University of Virginia’s Darden School of Business, described the ad campaign for the “You Tip, We Tip” initiative as “crafty,” referring specifically to a video advertisement where people are required to tip at gyms and weddings.

“Better Chance of Breaking Through”

“When ads connect with consumers on a meaningful societal issue in a humorous way (the minister asking for a tip at the end of a wedding is clever), they can have a better chance of breaking through,” Whitler told reporters.

Less Happy Tippers

The promotion and subsequent ad campaign have come at a time when Americans are more tired of tipping than ever, according to recent surveys.

Annual Tipping Survey

In June 2023, consumer financial services company Bankrate released their annual tipping survey, which showed that American tipping rates are plummeting, despite being asked to tip higher amounts and more often.

Only Tipping Sometimes

According to the survey, only 65% of restaurant diners tip their waitstaff every time they go to a sit-down establishment. 12% tip sometimes, and 5% never tip at all.

Significant Decrease

This is compared to Bankrate’s 2019 survey which showed that 77% of diners always tipped waitstaff. Over the course of just 4 years, millions of Americans have significantly decreased how often they tip.

Industry-Wide

Tipping rates have declined significantly across most service industries, including food deliveries, ride-share and taxi services, and hairdressers.

Negative Opinions Grow

The survey also showed that two-thirds of Americans now have at least one “negative opinion” about US tipping culture. Bankrate senior analyst Ted Rossman pointed to “tip creep” as one of the main culprits. Tip creep refers to the growing trend of services asking for tips where they previously were not warranted, such as through self-checkout machines.

“Giving Tipping a Bad Name”

“I believe that tip creep is giving tipping a bad name,” Rossman writes. “And there’s evidence that unconventional tip prompts (plus other issues such as inflation) are leading Americans to tip less even in situations when tipping is much more customary.”

Similar Initiatives on the Way?

With the growing pushback against excessive tipping, it’s plausible that consumers will see other brands launch similar initiatives that reward tipping.

Second Move for Domino’s

It’s not the first time Domino’s has implemented initiatives like “You Tip, We Tip.” Back in 2022, the pizza chain offered a similar $3 credit to customers who chose to pick up orders in person over having them delivered.

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The content of this article is for informational purposes only and does not constitute or replace professional financial advice.