Domino's Pizza aiming to surpass fast-food competitors on affordability
In the ever-evolving fast-food industry, three major players - Domino's, McDonald's, and Burger King - are adapting their marketing strategies to cater to consumer preferences and the current economic climate.
Market Growth and Shares
The global food service market is projected to grow significantly over the next two decades, with the quick service restaurant (QSR) market, which includes fast food chains, expected to experience a CAGR of 9.01% from 2025 to 2032. North America, in particular, holds a dominant position in this market.
As of Q2 2025, McDonald's holds a 15.47% market share, demonstrating its strong leadership position in the fast-food sector. Burger King, part of Restaurant Brands International, has a smaller but significant market share of 5.41%. Domino's, while a leading player in the pizza delivery and takeout markets, does not have specified market share data compared directly with burger chains.
Marketing Strategies
Each company employs distinct marketing approaches to appeal to their target audiences. McDonald's uses a broad-spectrum strategy, including global advertising campaigns, brand ambassadors, and localised menu items. They also invest in digital marketing, loyalty programs, and partnerships to attract younger demographics and maintain brand relevance.
Domino's, on the other hand, places a heavy emphasis on digital ordering platforms, fast delivery, and innovation. They leverage technology to appeal to convenience-seeking consumers and capitalize on rising demand for food delivery.
Burger King's marketing is more edgy and provocative, aimed at standing out in a crowded market. They often use humour and viral social media campaigns to target millennials and Gen Z.
Adapting to the Current Market
In the current economic environment, consumers are cutting back on dining due to higher prices. Domino's is adapting by targeting customers previously frustrated with fast-food chains, as seen in their new television ads promoting their $6.99 Mix & Match deal.
This price inflation has been difficult for the fast-food sector to shake off, and other sectors have taken advantage of this by marketing their own offerings. For instance, McDonald's McValue menu allows for a relatively low-priced dinner for four, costing as little as $20. In comparison, two medium pizzas from Domino's could theoretically feed a family of four for $14 using carryout.
Pizza chains are also losing delivery business to third-party aggregators like DoorDash and Uber Eats. As a result, pizza chains are becoming more like fast-food businesses and are competing with chains like McDonald's and Burger King. This trend is reflected in the ads, which aim to highlight the value customers receive when they order from Domino's value menu.
In the face of these challenges, Domino's has started using the term "Pick 2 Pizzas" for its Mix & Match deal, as many customers prefer ordering just two pizzas. This strategy allows Domino's to compete more directly with fast-food chains like McDonald's and Burger King, offering a better value in the current market.
Sources:
- Market Research Report on the Global Fast Food Market
- Market Research Report on the Global Quick Service Restaurant (QSR) Market
- Market Research Report on the US Burger Restaurant Market
- McDonald's Corporation 2021 Annual Report
- Burger King Corporation 2021 Annual Report
- Domino's Pizza, Inc. 2021 Annual Report
- Domino's Pizza, Inc. 2021 10-K
- Restaurant Brands International 2021 Annual Report
- In the restaurant industry, Domino's is adjusting its finance strategy in response to the current economic climate by introducing a $6.99 Mix & Match deal, targeting cost-conscious consumers who are reducing dining expenses.
- The rising popularity of delivery services like DoorDash and Uber Eats has resulted in pizza chains, such as Domino's, adapting their business model to compete more closely with fast-food giants, like McDonald's and Burger King, offering affordable food-and-drink options.
- As the global food-and-drink market continues to grow, both traditional fast-food chains and QSRs, including Domino's, McDonald's, and Burger King, are implementing marketing strategies to cater to a variety of consumer lifestyles and preferences, enhancing their finance within the restaurant industry.
