Domino's Pizza implements new pricing strategy

Domino's Pizza Inc. is looking to entice more value-focused customers to order its pies through a new pricing strategy, said the pizza delivery chain's chief executive at an investor conference Monday.

In a webcast of the 7th Annual Cowen & Co. Consumer Conference, David Brandon said in recent years the company lost a number of its "single pizza customers" _ those who place an order for just one pie and are looking for a cheaper dinner alternative _ by increasing its prices.

Brandon said to bring those customers back to Domino's, the chain is now implementing a "barbell" pricing strategy. In that model, some products are priced lower to appeal to customers searching for a good deal while other more premium products cost more for those customers who are less price-sensitive.

The company did not offer any specifics on whether it has lowered its prices on some of its menu items, but Brandon did say the chain's new hot sandwiches, which are priced at $4.99, are an example of the chain's new strategy.

"The burger guys have their 99 cent offering," he said. "We feel like we have to be in that space and in that game" by offering some lower-priced alternatives like the hot sandwiches.

Brandon also said the chain is moving away from offering limited-time-only deals and will instead add items to its menu that will become lasting products.

Domino's shares rose 17 cents to $6.30 in morning trading.