America's Biggest Pizza Chain Is Losing Customers

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Domino’s is the largest pizza chain in the US and the globe, yet it struggles to attract customers.

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Today, the chain reported decreased order volumes and a $40.6 million, or 3.8%, revenue reduction in Q2 2023. This suggests that Domino's price increases

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After supply chain concerns and inflation elevated food, labor, and other commodity prices, several big restaurant and fast-food businesses

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According to Market Watch, CEOs expected a 7% price increase in the fourth quarter of 2022. Those price hikes resumed in 2023. Domino's

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CFO Sandeep Reddy reported 3.9% US price increases in the latest quarter in an earnings call this morning.

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Reddy predicts pricing to be comparable in the third quarter and moderate to 2% in the fourth quarter of 2023.

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These pricing increases have hurt Domino's food sales. After raising the price of its Mix and Match deal in 2022, some consumers stated they

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were done with the chain. In the second quarter of 2023, same-store sales rose 0.1%, but Reddy said increased pricing drove it.

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Domino's delivery business is another key issue. The most recent quarter saw a 3.5% drop in same-store delivery sales.

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Domino's officials blame delivery driver shortages and budget-conscious clients who want to save delivery fees and tips.

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