That sales weakness led Domino to miss analyst profit estimates for the quarter. same-store sales in Q2 was driven by declining order counts, which continued to be pressured by the challenging staffing environment, which had certain operational impacts such as shortened store hours and customer service challenges in many stores, both company-owned and franchise," Weiner explained. International sales also fell 2.2%, worse than the 13.9% gain a year earlier. stores dropped 9.2% while franchise-owned stores dropped 2.5%. Same-store sales at company-operated U.S. same-store sales fell 2.9%, a sharp reversal from a 3.5% increase during the same quarter last year. Domino's reported delivery sales crashed 11.7% in the second quarter versus a year ago. The effort, while clever, may be having a minimal impact in terms of addressing lost sales from the labor shortage. “Until we’ve fully answered this question, all options will remain on the table.”ĭomino’s Pizza did not respond to Fortune’s request for comment.A pizza comes out of the oven at Domino's Pizza restaurant in Los Angeles, California, U.S. “The question remains, can we close the gap in performance and get back to fully meeting demand, utilizing our current delivery model as it has evolved over many decades?” Weiner said. He added the company was continuing to evaluate best practices to keep up with orders. Domino’s top stores are meeting demand and outperforming the system, signaling it is possible to overcome the present challenges. stores were utilizing call centers in some capacity,” Weiner said, leading to far fewer unanswered calls than in the first quarter.īut the CEO was upbeat, saying that Domino’s has turned a corner, and the answers to the company’s labor shortage are already in place. At the end of the second quarter, “around 40% of our U.S. “This allows team members to focus on making and delivering pizza without having to worry about answering phones, especially during the busiest times in the store,” Weiner said on the earnings call on July 21.ĭomino’s has already implemented their call center strategy for restaurants across the country. The company says it has contracted third party call centers to answer phone orders, in hopes of freeing up employees to complete other responsibilities. The solution to Domino’s delivery problems? Using call centers to get all those late night pizza orders on the road. “However, I have tremendous confidence in the team that we have assembled to leverage some of our current successes, address our current pressures and proactively work to mitigate the negative impact of those external factors that we can’t control.” “I can assure you that nobody at Domino’s is happy with our recent performance,” Weiner said. The rising cost of goods-and therefore the price of their pizza- has also led to a drop in sales. labor market is just one of the company’s problems, according to CEO Russell Weiner. The company reported a 11.7% drop in delivery sales in Q2 compared to the previous year, with total global retail sales dropping 3% over that time period, mostly due to staffing problems.Īnd the tight U.S. People keep putting in orders for cheesy bread, but there just isn’t enough staff to answer the phone, make the pizza, and deliver it, according to the company’s earnings call last week. It’s not that people don’t want it, according to Domino’s Pizza.
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