Domino’s plans to donate $174 million from ‘checkout charity’
The world’s top-selling pizza chain is betting big on the generosity of its customers. And it is not alone.
Domino’s recently pledged $174 million over the next ten years to benefit St. Jude Children’s Research Hospital, expecting the funds to come from its longstanding roundup campaign that invites customers to donate the difference between their purchase total and the next-highest dollar amount. The pizza chain has already raised more than $126 million this way across the past two decades for ALSAC, the fundraising organization for the Tennessee-based hospital.
Domino’s is the latest and largest example of “checkout charity” success. The fundraising tool raked in 24% more money in 2022 than 2020 among the highest making programs, for a total of $749 million, according to the professional association Engage for Good.
That staying power has franchises hopeful that consumers will continue giving their spare change despite shifts toward online shopping, negative economic headwinds and fears that more frequent solicitations will cause fatigue. Meanwhile, some retailers are fleshing out partnerships first formed after the 2020 racial reckoning pushed corporate citizenship toward the forefront of business practices.
WHY IT WORKS
Studies suggest that asking customers to round up is generally more effective than requesting a fixed amount — even when the totals are the same. That’s because the framing lessens the sting of parting with one’s money, according to a paper published in the Journal of Consumer Psychology.
“It feels less painful,” said Katie Kelting, a Saint Louis University marketing professor who led the research team.
The timing of the appeal introduces several other psychologically potent factors, according to Ike Silver, a marketing professor at Northwestern University. Buyers tend to imagine their purchases in whole numbers anyway; a $24.75 bill codes as $25, for example.
Plus, Silver said, it makes the act of giving “a bit more mindless.” Shoppers rushing to get through the checkout line don’t have much time to consider reasons against the donation.
“They capitalize on a purchase inertia where you’re just spending your money and you’re not really thinking too much about it,” Silver said.
HELPING PETSMART HELP ANIMALS
Champions of the strategy credit the asks for engaging everyday, would-be donors in an approachable form of giving with low barriers to entry. The practice is so commonplace that shoppers’ cumulative gifts have even become a key funding stream for some issue areas.
Petsmart Charities, which reports that over 80% of its cash donations come through the PIN pad at checkout, is considered the largest grantmaker for animal welfare causes. The pet superstore, which has been running its continual PIN pad donation program for 20 years, asks customers to give a fixed dollar amount starting at $2.
The money supports causes directly related to pets, such as increased access to veterinary care and animal evacuation services during natural disasters. That authentic connection is one reason that Petsmart Charities President Aimee Gilbreath believes their average donation is just under $3 — which is projected to add up to $40 million by the end of this year.
Without the closely aligned missions, Gilbreath expects they’d have a slightly harder time getting customers to donate.
“It’s just much easier for people to say yes when they get, ‘I’m here shopping at Petsmart. I love pets. If I donate to Petsmart Charities, I’m going to support pets who need a family, I’m going to support pets in other ways’,” she said.
Indeed, Kelting said the fit between the charity and the seller is “huge.” Customers can perceive point-of-sale solicitations as a violation of their social contract with a company, according to researchers, but partnerships among likeminded organizations are viewed in a more positive light.