![]() Allison said the company can only lead by example. So that's where its direct reach ends.ĭomino’s doesn’t monitor franchise staffing levels and has no say in how operators implement menu price increases or changes in pay. The fast casual has a 100 percent company-owned model, so it controls the pricing and wages at all of its units. Chipotle revealed in June it planned to raise menu prices 3.5 to 4 percent to offset raising the average wage of workers to $15 per hour. Other quick-service chains are facing the same dilemma. “The only thing that is sacred is that we’re going to bring value to the consumer because that’s what drives order counts, and ultimately order counts over time are correlated with sales and profitability at the store level.” “ $5.99 and $7.99 are not sacred,” he continued. ![]() “ $5.99 and $7.99 have continued to emerge from the many, many offers that we continue to test on a frequent basis, but what I will tell you is, if we find an offer or if the dynamics change that a different offer drives higher levels of profits for our franchisees, then we would move to that offer.” “Not just looking at which offers would drive the most top line, but more importantly, what’s going to drive the strongest four-wall EBITDA for our stores,” Allison said Thursday during Domino’s Q2 earnings call. In regard to national offers around the chain’s $5.99 Mix and Match and $7.99 Carryout deals, Allison said the brand has “continued to test those on a very frequent basis.” comps, growth was driven by more items per order, but also modest menu price and delivery fee increases. READ MORE: How Domino's Plans to Compete Against its 2020 Boomįor U.S. And when the chain thinks about how to offset wage hikes and still maintain a solid four-wall economic model, Allison noted pricing is “certainly one of the levers out there.” ![]() However, the labor crisis' shadow looms large, and Domino’s solution is one shared by many-implementing wage increases across corporate store markets. That represented the 41st straight quarter of domestic comps growth and the 110th consecutive period of international gains. International units lifted 13.9 percent, the highest in at least 18 years, and 14.2 percent on a two-year basis-the best since Q1 2016. same-store sales increased 3.5 percent, and 19.6 percent on a two-year stack. Even while lapping a hugely successful Q2 2020, U.S. It puts significant pressure on operators to meet pent-up demand while also maintaining a superior level of service, the CEO said. ![]() Domino’s operated with fewer employees than it would like to have in many stores across the country. Domino’s CEO Ritch Allison isn’t pleased margins increased 140 basis points to 24.5 percent at company-run stores in the second quarter. ![]()
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