Domino's CEO on how consumers' shift towards digital, delivery provides more job opportunities
In This Article:
Domino's CEO Richard Allison, joins Yahoo Finance's The First Trade with Alexis Christoforous and Brian Sozzi to discuss digital sales growth, menu innovation, growing franchisee interest and much more.
Video Transcript
BRIAN SOZZI: All right. Domino's Pizza is delivering on a major hiring plan as its sales heat up during the pandemic. Here to discuss all things Domino's is its CEO, Richard Allison. Richard, always good to speak with you here.
20,000 people. That is a lot of people. What are you seeing in your business to warrant that type of hiring?
RICHARD ALLISON: Hi, Brian. We certainly are. We're out there looking to hire 20,000 team members across the country. And, you know, as we've continued to navigate through this pandemic, we've had the privilege of being able to continue safely serving our customers.
And with, you know, so many consumers shifting more toward digital and delivery, you know, it's led to some increased demand across our business. And that gives us a great opportunity to go out there and offer jobs and pathways to careers for so many folks, many of whom perhaps may have lost the job that they had previously.
BRIAN SOZZI: And, Richard, you mentioned the digital component. It's been pretty mind-blowing to me how the digital uptake has been during the pandemic. What percentage your business is digital now?
RICHARD ALLISON: So, Brian, it has been interesting. And as you know, we've been investing in digital for over a decade now. So at the end of 2019, we were running, in the US, about 70% of our sales through digital channels. And when COVID hit earlier this year, that immediately leapt up into the mid to upper 70s. So we've been tracking along at about 75% digital and have had some individual weeks where that number gets even-- gets up closer to 80%.
ALEXIS CHRISTOFOROUS: Richard, I know at a time when lots of restaurants, especially smaller, privately-owned restaurants are-- are closing their doors forever, you-- you actually expand. You added 40 new stores. You closed just one store last quarter?
How are you able to do it? And what are you hearing from franchisees? Are-- is there interest and demand from perhaps new folks wanting to come in and-- and get a piece of the pie there at Domino's?
RICHARD ALLISON: So, Alexis, we had-- in 2019, we closed the year with the strongest financial performance we've ever had as a brand in terms of EBITDA at the store level. We averaged, in the US, about $143,000 at the store level. So we were in a very, very healthy place in terms of store economics.
And that gets franchisees excited about continuing to open new units. And you start with a strong base, and then here through the course of the pandemic, we've had the privilege of being able to continue to stay open and operating. And our franchisees have seen this as an opportunity to continue investing in the business and building new stores.