Margins are being hammered by inflation, so suit up before ya dig into that Peri Peri.
Background: Domino’s Pizza is the largest pizza chain in Australia based on stores and sales. It also owns the Domino's franchise in 10 other countries (like NZ, France, Japan and Germany).
What happened: Domino's' CEO has warned that price inflation will cause an increase in the cost of the company's raw materials (think: cheese, tomatoes and meat).
What else: Rather than increase the price of their tasty, tasty core pizzas, Domino's will introduce a premium range of pizzas to make up some of the lost margin on the core pizzas (due to inflation).
💡In most businesses, the pricing model will fall into one of two categories.
💡Domino’s has always specialised in driving many customers to purchase with low margin pizzas - but will now upsell with the créme de la créme, premium pizzas.
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