Pizza brands like Domino's and Papa John's are struggling as Americans shy away from delivery — and attempts to lure customers back are falling short
In a call with investors, Domino's CEO Russell Weiner attributed the decline to consumers resuming "pre-COVID eating habits," inflation's impact on higher delivery and tip fees, and staffing issues."We believe this dynamic will continue to pressure the delivery category in the short term, as long as consumers' disposable income remains pressured by macroeconomic factors," Weiner said in the call.
Bayron Solorzano, a Salvadorian immigrant, works as pizza delivery man for Dominos in Washington Heights, New York.And while Papa John's reported that international sales were up and the company managed to narrowly beat Wall Street expectations, its middling results — in tandem with Domino's performance — led shares to drop 6% on Thursday.
A courier worker is seen delivering an order as he leaves the American pizza restaurant franchise Papa John's Pizza in Spain.As Weiner stated on the call, pizza companies are not alone in their struggle: According to NPD data for 2022, food delivery was down in high single digits across the board.Some pizza companies also were hesitant to team with third-party services like DoorDash and Uber Eats, which tend to offer faster and cheaper delivery, ramping up competition.
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