Domino’s PizzaIt stated that it expected higher food prices this year. This will put pressure on the chain, which must be able to keep up with increasing costs while not alienating customers.

Ritch Allison, CEO of ICR Conference said that he expects unprecedented food basket cost increases compared to 2021.

For 2022, the company expects a 8% to 10% rise in its food prices. That’s three to four times what inflation would be for an average year. Allison stated that the prices of meats, cheeses, and some grains are increasing, which will make its pizzas more costly to produce.

Domino’s doesn’t expect to spend less on food this year. Allison stated that Domino’s believes this year will see an increase in labor costs for the restaurant sector.

Allison added, “That will surely impact us all at Domino’s also.”

During its third quarter,Domino’s U.S. operations were put under stress by staffing problems. Some stores had to cut hours which could have a negative impact on their sales. They are working to solve their labor problems, which includes updating their franchisees and rolling out an applicant tracking system.

To maintain its profit margins despite increasing costs, the pizza chain will change certain national promotions by 2022. Domino’s will not offer this deal to anyone ordering from the internet when Domino’s $7.99-a-week carryout promotion ends in just a few weeks. Customers tend to spend more when ordering digitally. Domino’s also has access to consumer data, so it won’t be necessary to call customers to place orders. Domino’s also plans to cut down on the amount of chicken wings or boneless wings that are available as part of the deal, from 10 to 8.

It reiterated its outlook for the next two to three years, saying it anticipates net growth of 6%-8% and retail sales growth of 8%- 10%. Refinitiv’s Wall Street analysts have predicted that Domino’s would experience an increase in earnings of 12.9% by 2022, and revenue growth of 7.1% through 2022.

Domino’s stock was down almost 1% during morning trading. Stock has increased 28% in the last twelve months to reach $18.3 Billion market value.