#Dominos locations drivers#
#Dominos locations driver#

Papa Johns is investing in technology to help its drivers be more productive and earn more money. Domino's outgoing CEO Ritch Allison said the company is looking at scheduling, including shorter shifts and more flexibility. In other words, pizza chains need to rethink their entire delivery model to compete for labor and maintain or gain sales through the channel. According to equity research firm BTIG, pizza companies seem to be losing the competition for delivery drivers to third-party companies that offer more schedule flexibility and, in some cases, higher pay. It's worth noting that while third-party partnerships might be helping Papa Johns outperform its peers, executives said sales could be even higher if it had even more staffing. Competition with third-party delivery companies Without sufficient staffing, that number could shrink, and fast. In February 2020, Domino's commanded 50% of the pizza delivery market. There is likely a sense of urgency for Domino's to come up with some sort of solution.

#Dominos locations driver#

Domino's said it is conducting a 'deep dive on driver labor,' noting that nothing is off the table, including partnerships with third-party delivery companies. Pizza Hut is adding third-party delivery companies during peak hours and adding its presence on their marketplaces to expand customer reach, for example. Furthermore, not having enough delivery capacity could lead to longer wait times or inaccurate orders, which could damage their reputations.īoth Pizza Hut and Domino's have indicated a shift in their business to fix their driver shortages. Without enough drivers to bring customers their delivery orders, Domino's and Pizza Hut are leaving sales on the table. Therein lies the advantage Papa Johns has at the moment. Fast-forward five quarterly conference calls, and Papa Johns executives said third-party delivery orders are 'incremental, profitable otherwise may have gone unfulfilled.' Pizza chains start to rethink their delivery models It helps us manage our labor, but also helps us manage our throughput as they can show up and take delivery.' And adding a significant number of drivers through models like DoorDash ( DASH -1.37%) helps us in a big way. In November 2020, CEO Rob Lynch said, 'Our No. Those third-party networks have left the chain better able to fulfill delivery orders during peak hours. Not coincidentally, Papa John's was an early adopter of third-party aggregate partnerships, while its peers stuck to their own drivers.

Domino's ( DPZ -1.03%) executives noted they 'have a lot of work to do to restore growth' in the delivery channel, pointing to efforts – like outsourcing its call centers – to help stores be more efficient when they're short staffed.īut Papa John's was positive on the quarter. Executives attributed the loss to 'capacity constraints' mainly from delivery driver shortages. Pizza Hut experienced a 6% drop in same-store sales. This trend became especially clear during Q1 2022 earnings calls. The restaurant industry's workforce remains about 700,000 people below pre-pandemic numbers, according to the U.S. But Papa John's ( PZZA -0.60%) has been able to overcome that obstacle, and get ahead of its rivals, because of some forward thinking. For major pizza chains, that labor shortage has specifically translated to a shortage of drivers and an inability to meet increased delivery demand. The increased demand became a challenge, however, as labor shortages took hold across the entire restaurant industry. As restrictions remained in place across much of the country forbidding dine-in business, pizza delivery grew to nearly $20 billion in 2021.