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Domino’s existing store sales slip for the first time in 10 years | WGN Radio 720

File – On Sunday, March 15, 2020, a deliveryman will depart by bicycle from the Domino’s Pizza restaurant in downtown Seattle. Domino’s Pizza says a shortage of cooks, drivers and other staff is squeezing sales in US stores. The world’s largest pizza chain said on Thursday, October 14, 2021, existing store sales __ or sales at stores that opened for at least a year __ fell 1.9% between July and September. I did. It is the first time in 10 years that the company’s same-store sales in the United States have declined. (AP Photo / Ted S. Warren, File)

Ann Arbor, Michigan (AP) — Domino’s Pizza, which appears to be pandemic, hasn’t escaped the phenomenon that has plagued almost every employer this summer. There is a serious shortage of workers.

The world’s largest pizza chain was a Wall Street star this year, with millions of people evacuating home and ordering lots of pizza, resulting in a surge in revenue.

Investors sent the company’s stock to a height never seen before during the summer.

But on Thursday, Domino’s Pizza Inc. said that for the first time in more than a decade, established store sales went the wrong way, declining 1.9% in the third quarter. Over the same three months last year, same-store sales increased by an unprecedented 17.5%.

The company also quoted a pandemic grant from the United States in the last quarter, but the focus of Ann Arbor, Michigan, is to find enough employees to keep the pie flowing.

Domino’s Pizza has taken steps to seduce cooks, drivers, and cashiers, but it has longer delivery times and tends to be potentially dangerous in a highly competitive environment with delivery apps such as DoorDash and UberEats. ..

“We believe staffing may continue to be an important issue in the short term as the labor market continues to evolve,” Alison said Thursday.

However, staff shortages are widespread, affecting retailers, fast-food outlets and factories.

Many economists still believe that most of the approximately 3 million people who lost their jobs due to a pandemic and stopped looking for a job will resume searching as the COVID-19 releases its grip. They say it took years from the recession of 2008-2009 to return the percentage of people who are working or seeking work.

Indeed.com, a job search site, currently has 14,558 job listings in Domino stores in the United States.

According to a recent report, the National Restaurant Association said US restaurant employment reached 11.3 million in July and is still shy to the pre-pandemic employment of 1 million.

Domino’s Pizza-owned stores are stepping up wages and allowances to attract workers. However, most of the company’s US stores are run by franchisees who determine their own wage rates.

Alison also said the company is trying to make the job easier and more attractive. For example, we are trying to keep drivers on the road more so that they can collect more tips.

But there are factors that are beyond the control of the company, Alison said. For example, a pandemic has choked immigrants, and he hopes it will eventually be alleviated.

“We need to see more immigrants to maintain a solid workforce,” Alison said.

Domino’s third-quarter revenue was up 3% to $ 997.9 million, slightly below Wall Street’s forecast.

Domino’s share price rose 2% on Thursday.

Domino’s existing store sales slip for the first time in 10 years | WGN Radio 720

Source link Domino’s existing store sales slip for the first time in 10 years | WGN Radio 720

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