Domino’s CEO Richard Allison said the company expects to deal with “unprecedented increases” in food prices, explaining that the costs of its ingredients are increasing 8% to 10% compared to last year. That is substantially higher than the usual hike of 3% to 4% the chain normally forecasts.
Moving the deal online has “several benefits” for the company, he added, because the more customers order food online the higher the average receipt. There’s also a cost-cutting benefit because fewer workers are needed to answer the phones.
The changes will take effect in a couple of weeks, Allison said.
Food costs also went up — rising 0.5% — but at a slightly slower pace than in recent months. Prices rose in nearly all major grocery categories, with fruit and vegetable costs rising the most.