ANN ARBOR, MICH. — Inflation has Domino’s Pizza, Inc. changing deals involving carryout orders and chicken menu items.
“I think many of you are aware of the significant inflation across the US economy and how that is hitting many of the inputs that we have for our business from meats, to cheese to some of the grains that go into the production of our products,” said Richard E. Allison, president and chief executive officer, during the ICR Conference Jan. 11. “So 8% to 10% (inflation) versus 2021. We also expect to continue to see wage inflation across the industry, and that will certainly impact us at Domino's as well.”
The first change involves the $7.99 carryout order.
“We're not going to change the headline number because the equity around that $7.99 is so important, but we are going to move that offer to online-only, and we are going to change the count on our chicken, our wings and boneless, from 10-piece to 8-piece to recognize some of these costs that we're incurring,” he said.
Online orders generally mean a higher ticket, and they free up employees since they do not have to answer the phones, he said.
Digital sales make up more than 75% of total sales in the United States for Ann Arbor-based Domino’s.
“We've launched anywhere ordering platforms, really allowing our customers to access Domino's Pizza anytime and anywhere they want,” Mr. Allison said. “In the US, that's over a dozen-and-a-half different ways that customers can order.”
Mr. Allison said the company expects capital expenditures of $120 million in the 2022 fiscal year.“As we continue to invest in our business, we'll continue to invest in technology that's helped us to drive growth,” he said. “We are going to continue to invest in our supply chain infrastructure. We have a new supply chain center in Merrillville, Ind., that’s currently under construction and that will open this year, and we've got ongoing investments in our existing infrastructure and supply chain to modernize our legacy facilities, along with continuing to build new corporate stores.”