Domino’s Pizza will cut its $7.99 wings from 10 to EIGHT pieces of chicken due to rising costs

Domino’s Pizza says it will cut the amount of wings in its usual $7.99 carry-out offer from 10 to eight pieces as it battles ‘unprecedented increases’ in food costs due to inflation, which rose by 7 percent in the US last year.

The Michigan-based pizza chain said wings will become an online exclusive, which will save the company money because customers spend more online and because stores will need less people to answer calls from wing-crazed fans.

Domino’s CEO Richard Allison told CNN Business that the cost of ingredients is rising by eight to 10 percent compared to last year. The company usually forecasts a hike of three to four percent.

The Labor Department said Wednesday that the consumer price index rose 0.5 percent last month after surging 0.8 percent in November, with Biden highlighting the slowing rate of growth as an achievement. 

That increase pushed annual inflation to 7 percent in December, which is the highest level since June 1982. 

‘Today’s report – which shows a meaningful reduction in headline inflation over last month, with gas prices and food prices falling – demonstrates that we are making progress in slowing the rate of price increases,’ Biden said. 

Domino’s Pizza says it will cut its signature $7.99 chicken wing deal from 10 to eight pieces as it battles rising food costs

The Michigan-based pizza chain said it expects the cost of ingredients to rise by eight to 10 percent compared to last year, as opposed to the usual three to four percent

The Michigan-based pizza chain said it expects the cost of ingredients to rise by eight to 10 percent compared to last year, as opposed to the usual three to four percent

Annual inflation hit 7 percent in December, the highest 12-month increase since June 1982

Annual inflation hit 7 percent in December, the highest 12-month increase since June 1982

Domino’s said the changes to the chicken wings on its menu will take effect in a couple weeks. 

Inflation, or rising prices, has been a concern for the US economy since the early days of the COVID-19 pandemic in 2020. 

Much of the economy was halted by shutdowns enacted to keep people safe, which slowed down production as people spent more in online and other shopping.

Experts have also said that the economy has struggled to keep up with rising demand during the staggered return to work and normal life, which is hampered by new COVID variants and spikes in cases and hospitalizations.

Domino’s isn’t the only pizza chain tightening its belt during the rise of Omicron.

Little Caesar’s raised the price of its iconic $5 Hot-N-Ready pizza to $5.55 – an 11 percent increase and its first price hike in nearly 25 years. The company, however, says it will offer 33 percent more pepperoni, CNN Business reports. 

Domino's says it will make its wings an online special only, saving the company money in labor costs and ensuring higher order prices from online orders

Domino’s says it will make its wings an online special only, saving the company money in labor costs and ensuring higher order prices from online orders

In a statement, Biden called inflation 'a global challenge' and claimed the latest numbers were good news, showing the monthly rate of price increases slowed in December from the prior month

In a statement, Biden called inflation ‘a global challenge’ and claimed the latest numbers were good news, showing the monthly rate of price increases slowed in December from the prior month 

The annual US inflation rate (dark blue) is seen alongside that of the other G7 nations. US inflation has outpaced all other countries in the group of wealthy nations since January 2021, the month Biden took office

The annual US inflation rate (dark blue) is seen alongside that of the other G7 nations. US inflation has outpaced all other countries in the group of wealthy nations since January 2021, the month Biden took office

Nationwide, gas prices dropped 2.2 percent in December from the prior month, but remained 50 percent higher than a year ago. 

Food prices were up 0.5 percent on the month and 6.3 percent higher than a year ago, making it unclear what falling food prices Biden was referring to. 

‘This report underscores that we still have more work to do, with price increases still too high and squeezing family budgets,’ Biden admitted. 

A labor shortage is boosting wages, sending costs higher for businesses, and chaos in the supply chain is showing little sign of easing as Omicron sidelines workers by the millions, suggesting that high inflation could persist well into 2022.

In his response, Biden also blamed inflation on global issues outside of his control, even though inflation in the US has remained persistently higher than any other Group of Seven nation since he took office last year.

‘Inflation is a global challenge, appearing in virtually every developed nation as it emerges from the pandemic economic slump,’ said Biden. 

‘America is fortunate that we have one of the fastest growing economies—thanks in part to the American Rescue Plan—which enables us to address price increases and maintain strong, sustainable economic growth. That is my goal and I am focused on reaching it every day,’ said Biden.

January 2021, the month Biden took office, is the last time another G7 nation recorded a higher annual inflation rate than the US, according to a DailyMail.com analysis of Federal Reserve data. 

Since then, the US has far outpaced its peers on price increases, though it is true that most wealthy nations have seen elevated inflation levels as their economies roar back from the pandemic. 

In November, the latest month available, annual inflation stood at 4.6 percent in the UK and 5.2 percent in Germany. 

Japan has kept the tightest rein on inflation among the G7, recording an annual increase in the consumer price index of just 0.6 percent in November.

Republicans were quick to respond to Wednesday’s inflation reading, with House Minority Leader Kevin McCarthy tweeting: ‘This trend isn’t ‘transitory,’ and it’s all happening under Democrats’ one-party control.’ 

McCarthy included an animated graphic showing Biden’s face tracking the annual inflation rate from his January 2020 inauguration through December. 

‘Under Joe Biden everything costs more, store shelves are empty, and small businesses are struggling to hire workers and stay open,’ said Republican National Committee Chairwoman Ronna McDaniel in a statement.

‘Joe Biden does not care about the hurt he’s brought on millions of Americans – with inflation at the highest level since 1982. Americans are paying the price for Biden’s failures, and Biden doesn’t care,’ she added. 

Senator Joe Manchin, a moderate West Virginia Democrat, called the latest inflation data ‘very, very troubling.’

Manchin has cited soaring inflation as his main reason for blocking the Democrats’ proposed $1.7 trillion Build Back Better spending bill. 

Facing pressure to tackle soaring inflation, the Federal Reserve is expected to raise benchmark interest rates four times this year, according to recent research notes from Goldman Sachs, J.P. Morgan, and Deutsche Bank.

Higher interest rates could put a damper on rising prices, but will also increase the rates for mortgages, credit cards, and other consumer borrowing. 

Shelves that held Chef Boyardee products are partially empty at a grocery in Pittsburgh, on Tuesday. Shortages at U.S. grocery stores have grown in recent weeks and scarcity is only driving prices higher for consumers

Shelves that held Chef Boyardee products are partially empty at a grocery in Pittsburgh, on Tuesday. Shortages at U.S. grocery stores have grown in recent weeks and scarcity is only driving prices higher for consumers

On Tuesday, Federal Reserve Chair Jerome Powell said the U.S. central bank was determined to ensure high inflation did not become 'entrenched'

On Tuesday, Federal Reserve Chair Jerome Powell said the U.S. central bank was determined to ensure high inflation did not become ‘entrenched’

J.P. Morgan CEO Jamie Dimon told CNBC on Monday that he ‘would be surprised if it’s just four increases this year,’ insisting that those four hikes ‘would be very easy for the economy to absorb.’   

On Tuesday, Federal Reserve Chair Jerome Powell, in a congressional hearing that pointed to his likely confirmation for a second term in the job, said the U.S. central bank was determined to ensure high inflation did not become ‘entrenched.’ 

He added that rather than diminishing job growth, a policy tightening was necessary to maintain the economic expansion.

But Powell said it may take several months to make a decision on running down the Fed’s $9 trillion balance sheet, and the lack of a faster timetable for rate hikes gave support to riskier assets.

After falling just under 1 percent earlier in the day, the interest rate sensitive technology sector bounced back and brought the broader indexes with it.

Powell’s comments likely reassured investors that the Fed was not going to prioritize inflation reduction above all else, said Shawn Cruz, senior manager of trader strategy at TD Ameritrade in Chicago.

‘The initial concern was the Fed would upset the pace of the recovery,’ Cruz told Reuters. 

But the investor takeaway from Tuesday’s testimony was that ‘he’s not just going to try and crush inflation and not worry about the other effects that could have on the economy. 

‘He’s also going to be sort of cognizant of the potential fallout effect.’ 

The Fed views a controlled amount of inflation as good, because it encourages spending and business investment, rather than hoarding cash. 

But out-of-control inflation can be dangerous, eroding the spending power of consumers and hitting low-income families and elderly pensioners the hardest.

Read more at DailyMail.co.uk

Leave a Reply

Your email address will not be published. Required fields are marked *