The largest restaurant chains in America are struggling to overcome waning demand as the economy continues to slow down. Even giants like Domino’s Pizza, which operates almost 19,000 stores worldwide, are reporting a series of challenges and financial losses in 2023.
The chain is now closing thousands of underperforming locations after recent price hike controversies depressed domestic and international sales and sent its shares plummeting to the lowest level in over a decade. The latest data shows that the pizza company is in far more trouble than we all thought, and experts say that if it fails to fix its problems before the current downturn gets worse, the American pie chain may rapidly become overwhelmed by its debt and fall victim to the Great Retail Collapse.
In February, conditions for the company have gone from bad to worse. In a single day, share prices plunged by a whopping 16%, marking the largest price decline since 2010. From that point on, share prices have continued to trend down, settling around $310 per share, or about 39% lower than during the same period a year ago. Now, thousands of stores have started to close, with Domino’s making the tough decision to shutter its entire operations in some areas due to profitability concerns.
It all started when just like many other US restaurants, the pizza chain started to adjust to the inflationary environment and raise its delivery and menu prices to offset higher labor and commodity costs. In October 2022, executives reported a 7% price hike that prompted many customers to cook at home instead of getting their meals delivered. Overall, the chain’s prices remain 12% higher than pre-pandemic levels, according to Eat This, Not That.
Industry experts argue that its pricing strategy was not efficient given that the company failed to consider changing consumer spending habits and how competitors’ price increases compared to its own. A new report reveals that Americans became very dissatisfied with the new prices, which led sales to sink all across the country.
Delivery problems are also weighing on Domino’s bottom line. The Michigan-based pizza brand is still experiencing a serious shortage of delivery drivers. With workers seeking out higher wages and better working conditions en masse, many just aren’t interested in delivering pizzas anymore. Despite this clear shift in the US labor market, Domino’s has been hesitant to partner with third-party delivery options like GrubHub or DoorDash, thus, losing customers to other rivals.
In America, the chain is losing ground and market share. Over the past six months, Domino’s significantly underperformed rivals including Pizza Hut and Papa John’s, which actually benefited from new menu news and third-party delivery marketing and driver service.
Its unwillingness to adapt to the current market and while rivals get stronger and snap more market share may throw the company over the edge. Considering how high its debt currently is and the depth of its profitability concerns, Domino’s must come up with better strategies to rebalance its finances soon because not even the largest pizza chain in the world is infallible and immune to the impact of recessions and downturns. This could be the beggining of the end for the company as the US retail apocalypse continues to claim more and more struggling businesses that fail to differentiate themselves in this wildy competitive market.
Video and article cross-posted from Epic Economist.
Five Things New “Preppers” Forget When Getting Ready for Bad Times Ahead
The preparedness community is growing faster than it has in decades. Even during peak times such as Y2K, the economic downturn of 2008, and Covid, the vast majority of Americans made sure they had plenty of toilet paper but didn’t really stockpile anything else.
Things have changed. There’s a growing anxiety in this presidential election year that has prompted more Americans to get prepared for crazy events in the future. Some of it is being driven by fearmongers, but there are valid concerns with the economy, food supply, pharmaceuticals, the energy grid, and mass rioting that have pushed average Americans into “prepper” mode.
There are degrees of preparedness. One does not have to be a full-blown “doomsday prepper” living off-grid in a secure Montana bunker in order to be ahead of the curve. In many ways, preparedness isn’t about being able to perfectly handle every conceivable situation. It’s about being less dependent on government for as long as possible. Those who have proper “preps” will not be waiting for FEMA to distribute emergency supplies to the desperate masses.
Below are five things people new to preparedness (and sometimes even those with experience) often forget as they get ready. All five are common sense notions that do not rely on doomsday in order to be useful. It may be nice to own a tank during the apocalypse but there’s not much you can do with it until things get really crazy. The recommendations below can have places in the lives of average Americans whether doomsday comes or not.
Note: The information provided by this publication or any related communications is for informational purposes only and should not be considered as financial advice. We do not provide personalized investment, financial, or legal advice.
Secured Wealth
Whether in the bank or held in a retirement account, most Americans feel that their life’s savings is relatively secure. At least they did until the last couple of years when de-banking, geopolitical turmoil, and the threat of Central Bank Digital Currencies reared their ugly heads.
It behooves Americans to diversify their holdings. If there’s a triggering event or series of events that cripple the financial systems or devalue the U.S. Dollar, wealth can evaporate quickly. To hedge against potential turmoil, many Americans are looking in two directions: Crypto and physical precious metals.
There are huge advantages to cryptocurrencies, but there are also inherent risks because “virtual” money can become challenging to spend. Add in the push by central banks and governments to regulate or even replace cryptocurrencies with their own versions they control and the risks amplify. There’s nothing wrong with cryptocurrencies today but things can change rapidly.
As for physical precious metals, many Americans pay cash to keep plenty on hand in their safe. Rolling over or transferring retirement accounts into self-directed IRAs is also a popular option, but there are caveats. It can often take weeks or even months to get the gold and silver shipped if the owner chooses to close their account. This is why Genesis Gold Group stands out. Their relationship with the depositories allows for rapid closure and shipping, often in less than 10 days from the time the account holder makes their move. This can come in handy if things appear to be heading south.
Lots of Potable Water
One of the biggest shocks that hit new preppers is understanding how much potable water they need in order to survive. Experts claim one gallon of water per person per day is necessary. Even the most conservative estimates put it at over half-a-gallon. That means that for a family of four, they’ll need around 120 gallons of water to survive for a month if the taps turn off and the stores empty out.
Being near a fresh water source, whether it’s a river, lake, or well, is a best practice among experienced preppers. It’s necessary to have a water filter as well, even if the taps are still working. Many refuse to drink tap water even when there is no emergency. Berkey was our previous favorite but they’re under attack from regulators so the Alexapure systems are solid replacements.
For those in the city or away from fresh water sources, storage is the best option. This can be challenging because proper water storage containers take up a lot of room and are difficult to move if the need arises. For “bug in” situations, having a larger container that stores hundreds or even thousands of gallons is better than stacking 1-5 gallon containers. Unfortunately, they won’t be easily transportable and they can cost a lot to install.
Water is critical. If chaos erupts and water infrastructure is compromised, having a large backup supply can be lifesaving.
Pharmaceuticals and Medical Supplies
There are multiple threats specific to the medical supply chain. With Chinese and Indian imports accounting for over 90% of pharmaceutical ingredients in the United States, deteriorating relations could make it impossible to get the medicines and antibiotics many of us need.
Stocking up many prescription medications can be hard. Doctors generally do not like to prescribe large batches of drugs even if they are shelf-stable for extended periods of time. It is a best practice to ask your doctor if they can prescribe a larger amount. Today, some are sympathetic to concerns about pharmacies running out or becoming inaccessible. Tell them your concerns. It’s worth a shot. The worst they can do is say no.
If your doctor is unwilling to help you stock up on medicines, then Jase Medical is a good alternative. Through telehealth, they can prescribe daily meds or antibiotics that are shipped to your door. As proponents of medical freedom, they empathize with those who want to have enough medical supplies on hand in case things go wrong.
Energy Sources
The vast majority of Americans are locked into the grid. This has proven to be a massive liability when the grid goes down. Unfortunately, there are no inexpensive remedies.
Those living off-grid had to either spend a lot of money or effort (or both) to get their alternative energy sources like solar set up. For those who do not want to go so far, it’s still a best practice to have backup power sources. Diesel generators and portable solar panels are the two most popular, and while they’re not inexpensive they are not out of reach of most Americans who are concerned about being without power for extended periods of time.
Natural gas is another necessity for many, but that’s far more challenging to replace. Having alternatives for heating and cooking that can be powered if gas and electric grids go down is important. Have a backup for items that require power such as manual can openers. If you’re stuck eating canned foods for a while and all you have is an electric opener, you’ll have problems.
Don’t Forget the Protein
When most think about “prepping,” they think about their food supply. More Americans are turning to gardening and homesteading as ways to produce their own food. Others are working with local farmers and ranchers to purchase directly from the sources. This is a good idea whether doomsday comes or not, but it’s particularly important if the food supply chain is broken.
Most grocery stores have about one to two weeks worth of food, as do most American households. Grocers rely heavily on truckers to receive their ongoing shipments. In a crisis, the current process can fail. It behooves Americans for multiple reasons to localize their food purchases as much as possible.
Long-term storage is another popular option. Canned foods, MREs, and freeze dried meals are selling out quickly even as prices rise. But one component that is conspicuously absent in shelf-stable food is high-quality protein. Most survival food companies offer low quality “protein buckets” or cans of meat, but they are often barely edible.
Prepper All-Naturals offers premium cuts of steak that have been cooked sous vide and freeze dried to give them a 25-year shelf life. They offer Ribeye, NY Strip, and Tenderloin among others.
Having buckets of beans and rice is a good start, but keeping a solid supply of high-quality protein isn’t just healthier. It can help a family maintain normalcy through crises.
Prepare Without Fear
With all the challenges we face as Americans today, it can be emotionally draining. Citizens are scared and there’s nothing irrational about their concerns. Being prepared and making lifestyle changes to secure necessities can go a long way toward overcoming the fears that plague us. We should hope and pray for the best but prepare for the worst. And if the worst does come, then knowing we did what we could to be ready for it will help us face those challenges with confidence.
They have a better crust now but like all of the I hate the forced tips on you. And like all of them overpriced for what you get. The deal is PH New Yorker pizza but they put a weird crust on it recently. Don’t like it as much. Weird crust.
Bidenomics.
Who wants to deliver pizza for minimum wage and no benefits, when gas is four bucks a gallon and you could get mugged or killed for the cash? Raising prices isn’t the answer.
Corporate mentality – always a business killer.
Actually, the delivery drivers don’t even get minimum wage. They work for tips only.
Plus, they’re such chintzes with their toppings including all the way down to the amount of sauce they spread on the pizza. It was almost to the point where you had to order double toppings just to get any toppings at all. And, who in their right mind wants to deliver pizza to customers that won’t tip. Also, who wants to drive their vehicle into the dust for minimum wage, whatever it is, those miles add up you know. And, who wants to deliver to cheap, ungrateful customers that are too lazy to get off their fat a$$es and drive up to the store and pick it up. Whenever I used to order pizza I would always go pick it up. I refuse to wait for some person to deliver my pie cold. Depending upon the day of the week and the time of day you could be waiting a couple of hours to receive your food. I know, I used to deliver pizza back in late ’80s early ’90s. On a Friday night a driver would sometimes deliver 10 or more pizzas in one trip. And, when you got back to the store the pizzas would be stacked on the shelf waiting to be delivered. Of course, those days are gone forever.