Domino’s rapid store expansion means more money for delivery drivers

The labor market may be tight, however that will’s not stopping delivery drivers by joining up with Domino’s.

Domino’s has become the dominant player from the pizza industry thanks to its technological prowess, a well-known loyalty program along with also improvements to its pizzas. Its strong sales growth has allowed the item to quickly expand. More stores mean more money for those that will courier its pies, CEO Ritch Allison said during an earnings conference call Tuesday.

“You know I think labor is actually tight in any business from the U.S. today, along with also we’re certainly no exception to that will,” Allison said. “The fact that will our drivers are so busy, the item helps us. When we take a look at what the driver can make at Domino’s Pizza relative to delivering or driving for some additional businesses, the item’s very, very attractive.”

from the third quarter, Domino’s opened 232 net completely new stores.

The idea is actually to add more Domino’s stores to ensure drivers have less territory they need to cover. Their runs become shorter, allowing them to make more deliveries in an hour along with also earn more tips. Better along with also more consistent tips can be a deciding factor for drivers to stay using a company like Domino’s rather than leaving for a rival, he said.

The restaurant industry has one of the worst employee retention rates. A whopping 72.5 percent of people left their food service or hospitality gigs in 2017, according to the Bureau of Labor Statistics.

Partially the item’s just the nature of the industry, with many jobs filled by teens along with also college students just getting into the labor force. They tend to be part-time or seasonal hires, along with also only intend to stay with the company for a short time before moving on to another career.

along with also since restaurants are always hiring, jumping by one brand to another for better pay or benefits isn’t uncommon. The trouble is actually each time an employee leaves restaurants have to hire along with also train someone completely new to take their place, costing time along with also money.

Allison also touted recent programs, which drove more traffic than traditional limited-time offers. One program, called HotSpots, allows customers to get delivery at places such as parks, beaches along with also stadium parking lots. Another, Paving for Pizza, is actually a partnership with towns along with also cities from the U.S. to fix potholes.

Domino’s shares fell nearly 5 percent on Tuesday after sales fell short of expectations. Same-store sales rose 6.3 percent from the quarter.

Allison was quick to quell any notions that will Domino’s was automatically picking up market share by the beleaguered Papa John’s, which has struggled to regain sales after its founder made a racially charged comment.

“We are in a very fragmented category, along with also if we have a competitor donating share the item doesn’t simply fall in our pocket; we’ve got to earn the item,” Allison said.

Papa John’s had a relatively modest share within the category along with also therefore its impact to the space isn’t quite as great as people have assumed, he said.

For Domino’s, the focus will always be on its own strategy along with also not on the “short-term ups along with also downs of any specific competitor,” Allison said.

Programming Note: For more on Domino’s, watch CEO Ritch Allison’s interview on “Mad Money” tonight at 6 p.m. ET.

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