Domino’s Pizza forecasts soaring food costs in 2022, reiterates long-term sales outlook

 

·         Domino’s Pizza is expecting “unprecedented” food-cost increases in 2022.

·         The company is forecasting an 8% to 10% jump in its food basket costs, three to four times the inflation for a typical year, CEO Ritch Allison said.

·         To address those rising costs, Domino’s plans to modify some of its national promotions.

 

Amelia Lucas, CNBC

Jan 11, 2022

 

Domino’s Pizza said it expects higher food prices to persist this year, putting pressure on the chain to cope with rising costs without alienating consumers.

 

“We expect unprecedented increases in our food basket costs versus 2021,” CEO Ritch Allison told attendees of the virtual ICR Conference on Tuesday.

 

The pizza chain is forecasting an 8% to 10% jump in its food basket costs for 2022, three to four times the inflation for a typical year. Prices for meat, cheese and certain grains are on the rise, making its pizzas more expensive to make.

 

Food input costs aren’t the only cause for concern. Higher labor costs in the restaurant industry are also expected to persist this year, Allison said.

 

“That will certainly impact us at Domino’s as well,” Allison said.

 

During its third quarter, staffing issues put financial pressure on the chain, with some locations shortening hours and missing sales opportunities. Innovations — such as rolling out a new applicant tracking system and updating franchisees on ways to use workers’ time more efficiently — are in the works to address that problem...

 

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https://www.cnbc.com/2022/01/11/dominos-pizza-expects-soaring-food-costs-in-2022-backs-long-term-outlook.html