Domino's Pizza To Scale Back On Promotional Offers

(RTTNews) - Domino's Pizza Inc is planning to cut back on some of its promotional offers for 2022 across the United States amid soaring food costs due to higher levels of inflation.

Chief Executive Officer Ritch Allison at the virtual ICR Conference said the pizza chain expects unprecedented increases in food basket costs in the new year. The company projects an 8%-10% increase in its food costs over the last year, three to four times the inflation for a typical year.

According to the company, pizzas are turning more expensive as prices for meat, cheese and certain grains are increasing. Allison stated that food input costs as well as higher labor costs in the restaurant industry would impact the business.

Reuters reported that the company, in its $7.99 carryout offer, will cut the number of chicken wings to eight pieces from 10 pieces. Meanwhile, the offer is likely to be given to customers ordering online.

By adjusting national promotions, the company expects to maintain profit margins while trying to reduce costs.

In its third quarter, the company had experienced staffing issues with some locations shortening hours.