Domino’s is ready to raise the price of its economy pizzas due to inflation and the rising cost of some ingredients.
The fast-food chain made the announcement Thursday, with the price of cheese a huge component in the direction its margins could take going forward.
Chief Executive Don Meij said not all products would be affected by the price increases, specifically its recently minted “supreme value” options.
However, the chain’s popular range of $5 value pizzas will now cost $8 but will include a host of additional toppings as some sort of compensation.
“Customer pricing is complex and there is no ‘one size fits all’ approach. We had to slightly increase some of our prices and we will probably have to increase some more, just like all companies at the moment,” Meij said.
“We’ve given customers options.”
Meij said the battle to keep prices down was “ongoing” due to a variety of factors within the company’s supply chain.
“Domino’s offers hot, fresh food delivered quickly at an affordable price,” he said.
“This is an ongoing process and we appreciate the support of our current and new customers during these extraordinary times.”
The accounts show that Domino’s profit fell 10.5% in 2022 to $262.9 million.
Worldwide, the chain opened 294 new stores, an average of more than five stores per week.
Twenty stores were opened in Australia and New Zealand over the past year along with the franchise renewal of 30 stores.
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