Domino's Cuts Back On Promotional Offers As Costs Bite

By Dave Simpson
Domino's Cuts Back On Promotional Offers As Costs Bite

Higher food costs due to record levels of inflation has forced Domino's Pizza Inc to scale back some of its promotional offers for 2022 in the United States, the company has said.

The First Of A Few Changes

The pizza chain said that it will cut the number of chicken wings in its $7.99 carryout offer to eight pieces from 10 pieces, the first of a few changes the company is making to counter higher labour costs and prices of meats, cheese, and some grains.

CEO Statement

"We expect unprecedented increases in our food basket costs (for fiscal 2022) versus 2021 of 8% to 10%, which is 3 to 4x what we might normally see in a year," Chief Executive Officer Richard Allison said at ICR Conference.

Moving The Offer To Only Its Online Sales Channel

Domino's is also moving the offer to only its online sales channel as it could cut costs by not having its workers answer the phones.

Costs Of Ingredients Driven Up

Global supply-chain bottlenecks have driven up costs of ingredients, forcing U.S. restaurants to increase prices, while they have also had to pay their workers more to keep them from leaving for higher-paying jobs.

News by Reuters, edited by Hospitality Ireland. Click subscribe to sign up for the Hospitality Ireland print edition.