CEO reports sales gains despite longer wait times
Domino’s delivery times have “slipped a minute or two,” according to the popular fast food pizza chain.
CEO Richard Allison acknowledged the company is dealing with staffing shortages, during an analyst call to discuss the company’s second quarter earnings last month.
“There’s clearly an opportunity to continue to grow delivery by driving those service times down,” Allison said, as reported by CNN Business. “Some of that will come from getting our staffing levels back to where we need them to be.”
Restaurants nationwide have been dealing with a staffing shortage since the pandemic forced many to shutter their doors or alter their business models. Owners are finding employees aren’t as keen to return to work for bare minimum wages. Employees who weathered the pandemic have also been quitting at higher rates.
Domino’s has made efforts to retain more staff by raising its hourly rate at its corporate locations. Allison said he empathizes with Domino’s franchisees who are feeling the heat as well.
“One of the most important things about running corporate stores is that we’re out there across the country feeling exactly what our franchisees are feeling,” Allison said. “So when they’re feeling pinched on staffing and wages and other things, we feel it in our own business, as well, and it allows us to maintain a level of alignment that’s just impossible to have if you’ve sold all of your corporate stores over time.”
The brand is very particular in general with how many employees work at a location, and even uses machine learning to identify the perfect number of team members at any given time.
The franchise has also made efforts to increase efficiency by implementing new standards such as not requiring employees to pre-fold boxes and outfitting delivery drivers with fine-tuned GPS software.
Despite the challenges and slower service, Domino’s continues to see positive sales growth. The company reported a sales increase of 3.5% in the quarter for stores that have been open at least a year.