Domino's Pizza cuts promotional offers to curb costs

The company is trying to counter higher labour costs, rising costs for meat and cheese
calendar icon 11 January 2022
clock icon 2 minute read

The pizza chain said 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, reported Reuters.

"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.

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.

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

Thomas Reuters Foundation

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