Answer Happy

Introduction Domino's pizza is an American multinational pizza restaurant chain founded in 1960 and has stores in more than 83 countries as of today. It is the largest pizza chain in Australia in terms of network stores numbers and network sales as well as the largest franchisee for the us dominos pizza brand in the world. As we know the case is about the period of pandemic when most of the food production and sales industries had to suffer a lot because of lockdowns and contactless involvement. This resulted in changes in demand, supply and prices for pizza and other food production and sales in the industry. Price elasticity of demand for Domino's pizza The definition of Price Elasticity of Demand (PED) is the responsiveness and elasticity, of the quantity demanded of a good or service to a change in its price. More precisely, it gives the percentage change in quantity demanded in response to a one percent change in price. The PED is a unit-free measure. Domino's pizza is well received and consumed food chain in Australia and also has a very large market share. It has captured the market share of pizza due to its fast delivery, cheaper range of pizza prices compare to competitors and more varieties of pizzas available in the market. Before pandemic Due to this the responsiveness of its customer towards the change in price is high for dominos pizza. As per the records of early 2019, the sales of pizza increased by 50% while the prices had only dropped by 28%. percentage in demand 50 Price elasticity of demand = = 1.79 Percentage change in price 28 The given data clearly shows the price elasticity of dominos pizza is elastic.
During pandemic In the period of pandemic things weren't the same for food restaurant. Most of them struggled to reach there customers. Domino's large digital presence, integrated supply chain, robust delivery, and carry out capabilities made the company ideally situated to strengthen its market position during covid-19 pandemic. While other competitors struggled to reach customers during pandemic, dominos market share soared from 1.6% in 2019 to 2.2% in 2021. As people had no options and also due to lockdown they weren't able to go out of there homes and buy necessary supplies that led them to go for online purchasing. Demand for dominos pizza soared because of these reasons. Due to rise in production and delivery cost customer had to face slight increase in prices. Even though with no substitute consumption quantity demand for dominos pizza was high. Price elasticity of demand for dominos pizza was ........ For example the price of pizza rise by 15%, percentage change in demand rise by 40%. Problems face by domino's pizza during pandemic • Labor limitations Availibility of raw material like cheese, breads, vegitables etc. • Higher wage pay and sick pay • Limitations in pizza varities and also other substitute product such as burger, fries etc. Solutions