October 28, 2021
For first time in a decade, Domino's same-store sales slip

For first time in a decade, Domino’s same-store sales slip

ANN ARBOR, Mich. — Domino’s, a firm seemingly tailormade for a pandemic, has not been spared from a phenomenon plaguing virtually each employer this summer season: A extreme scarcity of staff.

The world’s largest pizza chain has been a star on Wall Avenue this yr with revenues hovering as thousands and thousands sheltered at house and ordered a lot of pizza.

Buyers despatched firm shares to heights beforehand unseen over the summer season.

On Thursday, nonetheless, for the first time in greater than a decade, Domino’s Pizza Inc. stated that sales at established shops went in the flawed route, falling 1.9% in the third quarter. Throughout the identical three-month stretch final yr, comparable-store sales rocketed an unprecedented 17.5% greater.

The corporate additionally cited pandemic help cash from the U.S. tapering off throughout the latest quarter, however the focus on the Ann Arbor, Michigan, firm, is discovering sufficient staff to maintain the pies flowing.

“We believe that staffing may remain a significant challenge in the near term as the labor market continues to evolve,” Allison stated Thursday.

The staffing scarcity is widespread, nonetheless, effecting retail shops, quick meals eating places and factories.

Many economists nonetheless suppose that many of the roughly 3 million individuals who misplaced jobs and stopped in search of work for the reason that pandemic struck will resume their searches as COVID-19 releases its grip. It took years after the 2008-2009 recession, they word, for the proportion of individuals working or searching for work to return.

The job searching website Certainly.com presently lists 14,558 job openings at Domino’s U.S. shops.

In a latest report, the Nationwide Restaurant Affiliation stated U.S. restaurant employment reached 11.3 million in July, nonetheless a million shy of the quantity employed earlier than the pandemic.

The shops owned by Domino’s have enhanced pay and advantages to draw staff. However the overwhelming majority of the corporate’s U.S. shops are operated by franchisees who decide their very own wage charges.

Allison additionally stated the corporate is making an attempt to make its jobs extra simpler and extra interesting. For instance, it’s making an attempt to maintain drivers on the highway extra to allow them to accumulate extra ideas.

“We need to see more immigration to continue to have a robust workforce,” Allison stated.

Domino’s income rose 3% in the third quarter to $997.9 million, simply wanting Wall Avenue projections.

Domino’s shares rose 2% Thursday.

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