Domino's and its franchisees already had more stores open internationally than domestically, and the trend accelerated in the quarter. Interestingly, the international segment continued taking a more prominent role in the company overall. The segment includes countries like India, Japan, China, and others, each enduring unique phases of the coronavirus pandemic. It seems, while some franchisees did increase incentives to attract workers, others decided to operate fewer hours or at reduced staffing levels.įortunately, Domino's sustained its longer-running streak (111 quarters) of same-store sales growth internationally by reporting an 8.8% increase in the metric from the year before. Remember, Domino's runs on a franchise business model, and its franchisees have lots of discretion on what they pay to attract staff. In addition to having a high bar to jump, Domino's end to the streak can be attributed to widely reported labor shortages. Last year's third-quarter growth rate of 17.5% was the highest it has achieved in its history as a public company. Still, it is not surprising given Domino's report was comparing with a robust growth rate in the previous year. So it was a bit of a disappointment to see the streak end when the company reported a 1.9% year-over-year decrease in the metric in the third quarter. Labor shortages hurting sales in the U.S.ĭomino's long-running streak of same-store sales growth went back to 2009. 13, Weiner said staffing remains a constraint, "but my confidence in our ability to solve many of our delivery labor challenges ourselves has grown over the past few quarters.Image source: Getty Images. On the company's third quarter earnings call with analysts on Oct. Weiner said that the company's hiring metrics including applications and new hires per week are back to pre-Covid numbers, but he added, "there's still gaps to fill, and that's part of why we're doing things like this to bring the inflow and give a few more options." While some of the company's stores require delivery driver applicants to use their own vehicle, some do provide a car. There are many people who work in Domino's stores or potential workers who have driver's licenses, and Weiner said, "all they need is a car… it's a great way for us to bring in incremental labor at a time when that market is tight." "If you think about today, what we do is hire folks with cars, but that's getting really competitive with what's going on." "It just allows us to tap into a different driver pool," Weiner said. Rolling out the new fleet of GM EVs also is expected to help the company with its driver recruitment efforts. In 2014, the company introduced the DXP delivery vehicle, a custom-build Chevrolet Spark that featured a built-in warming oven and special compartments to hold items like sodas. The adoption of this fleet of EVs is not the first time Domino's has looked to optimize how pizza is delivered. 11, with 402 of those being corporate locations. Domino's had 6,643 stores across the U.S. in November, with the additional 700 arriving over the coming months. The new vehicles, which have a 259-mile range, will be custom-branded with Domino's logos.Īn initial 100 vehicles have been arriving at select franchise and corporate stores across the U.S. The Chevy Bolt EV will provide the company with zero tailpipe emissions and lower average maintenance costs than nonelectric vehicles, as well as a reduction in fueling costs, according to Domino's. "This is a way we can get better better service for our customers and better for the environment." "Domino's was founded in 1960 as a delivery company, and we go to bed every night and wake up every morning saying 'how can we get better?'" Weiner told CNBC's Jim Cramer on "Mad Money" last week. Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit
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