Additionally, wings will only be available for ordering online, no longer by phone.
Domino's CEO Richard Allison told CNN Business that the company has had to deal with "unprecedented increases" in food prices. He illustrated that the costs of its ingredients have increased eight to ten percent compared to last year. That is significantly higher than the usual hike of three to four percent.
He also explained that having them available only online equals a higher average receipt and fewer workers are needed to answer phones.
Other fast-food chains, including Domino’s rivals, have also increased their prices due to rising costs.
On Wednesday, the Bureau of Labor Statistics reported that inflation hit a 39-year high. The U.S. consumer price index rose seven percent over the past year before seasonal adjustments, the steepest climb in prices since June 1982. Food costs also rose 0.5 percent.
Inflation plowed ahead at its fastest 12-month pace in nearly 40 years during December, according to a closely watched gauge the Labor Department released Wednesday.
Economists surveyed by Dow Jones had been expecting the gauge to increase 7% on an annual basis and 0.4% from November.
The annual move was the fastest increase since June 1982 and came amid a shortage of goods and workers and on the heels of unprecedented cash flowing through the U.S. economy from Congress and the Federal Reserve.
Despite the strong gain, stocks rose following the news, while government bond yields were mostly negative.
“The December CPI report of a 7% increase over the last 12 months will be shocking for some investors as we haven’t seen a number that high” in almost 40 years, said Brian Price, head of investment management at Commonwealth Financial Network. “However, this print was largely anticipated by many, and we can see that reaction in the bond market as longer-term interest rates are declining so far this morning.”
Fed officials are watching the inflation data closely and are widely expected to raise interest rates this year in an effort to combat increasing prices and as the job’s picture approaches full employment. Though the central bank uses the personal consumption expenditures price index as its primary inflation measure, policymakers take in a wide range of information in making decisions.
“This morning’s CPI read really only solidifies what we already know: Consumer wallets are feeling pricing pressures and in turn the Fed has signaled a more hawkish approach. But the question remains if the Fed will pick up the pace given inflation is seemingly here to stay, at least in the medium-term,” said Mike Loewengart, managing director for investment strategy at E-Trade. “With Covid cases continuing to rise, the impact on the supply chain and labor shortages could persist, which only fuels higher prices.”