Domino’s Blames Staff Shortage for Decline in Sales

by Shelby Scott
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Following the heights of the COVID-19 pandemic, numerous employee terminations and lay-offs resulted in a nationwide labor shortage. Now, as companies struggle to attract new employees, restaurants across the industry fight an upkeep in sales. Most recently, Domino’s Pizza reported its first decline in sales in more than a decade on Thursday. As companies continue to cite, the franchise blamed an ongoing staff shortage for the sales decline.

Fox News reported the company’s quarterly results reveal a common issue among the restaurant and retail industry as COVID restrictions and benefits have begun to conclude.

Resulting impacts due to the labor shortage at Domino’s specifically have led to several operational issues. The news outlet stated a lack of employees created reduced operating hours. It additionally led to longer delivery times at certain locations. Domino’s Treasurer Jessica Parrish affirmed the fact stating, “a very challenging staffing environment…had certain operational impacts such as shortened store hours or customer service challenges in many of our stores.”

The news outlet reported Domino’s sales declined 1.9% during the third quarter. Contrastly, previous reports showed a 17.5% sales growth at the same time last year. Other factors resulting in the sales reduction could additionally come from the conclusion of federally dispersed stimulus checks.

Domino’s CEO Ritch Allison noted an earlier in boost in sales following the dispersal of the stimulus checks. However, now the conclusion of that dispersal creates a likely halt in additional sales since Americans won’t have that additional income.

Staff Shortages Lead to Walkouts

Since the arrival of COVID-19, the media has continued to report on the struggles of big name brands companies and their inability to hire and maintain regular staff. However, on the other hand, the staffing shortage has created physical and emotional stress among hundreds of thousands of American employees.

For those working in retail and food especially, the environment has become even more stressful following the pandemic. In industries already iconic for their stressful environments, the pandemic has only worsened conditions. And with a major slump in employee hiring and retention, previously dedicated employees have lost patience and drive. Many Americans have reported minimum wages versus heavily increased hours, one major contribution to employee retention across industries.

However, the staff shortages themselves have further led to mass employee walkouts after too long spent overworking.

One restaurant made the news earlier last month when the entire staff quit. The employees reportedly walked off in protest from a Macon, Georgia Barberitos. They additionally left a sign on the door of the establishment stating management had forced employees to work seven days a week for an entire month. The sign quickly went viral across social media.

Simultaneously, management at the GA restaurant stated the claims were untrue. They added they were saddened by the employees’ decision to leave.

Outsider.com