of papa Giovanni is seeing an improvement in staffing levels for delivery drivers, CEO Rob Lynch told CNBC’s Jim Cramer on Monday.
“April was a busy month, but our staff situation has progressively improved. We are starting to convince drivers to come in and take orders … Our demand is still huge and it has been a challenge to fulfill those orders,” he said. Lynch stated in an interview on “crazy money“, adding that the collaborations with DoorDash, GrubHub and Uber Eats helped mitigate the challenges of the job.
of papa Giovanni reported better than expected earnings and revenues in the last quarter. The company said supply availability and labor shortages were some of the biggest headwinds for the company.
The pizza company’s stock fell 4.37% on Monday, hitting a new 52-week low earlier in the day.
As for other obstacles in Papa John’s operations, Lynch said that while inflation is driving up costs for the company, he is cautious about accepting price increases. Papa John’s raised prices on average about 7% in its corporate stores last quarter.
“We haven’t seen this level of food inflation for about 40 years … We are taking a long-term view here. We continue to attract new customers,” he said.
“So we don’t take all the potentially necessary pricing to cover the full cost, because we want to make sure that when we get through these tough times and go back to a more normalized cost rate, we will have those customers,” he added.
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