Business

According to the CEO, Papa John’s cadre of delivery drivers is getting “gradually better.”

Papa John’s is seeing an improvement in its delivery driver workforce, CEO Rob Lynch told CNBC’s Jim Cramer on Monday.

“April was a difficult month, but our staffing situation has gradually improved. We are starting to bring in drivers and take orders… Our demand is still huge and it has been a challenge for us to serve those orders,” Lynch said. in an interview with Mad Money, adding that partnerships with DoorDash, GrubHub and Uber Eats have helped mitigate labor issues.

Papa John’s reported higher-than-expected earnings and earnings in the latest quarter. The company said supply availability and labor shortages were among the company’s biggest hurdles.

The pizza company’s shares fell 4.37% on Monday, hitting a fresh 52-week low earlier in the day.

As for other problems in Papa John’s operations, Lynch said that while inflation is driving up the company’s costs, it is cautious about raising prices. Last quarter, Papa John’s raised prices by an average of about 7% in its corporate stores.

“We haven’t seen this level of food inflation in about 40 years… We’re looking at the long term here. We continue to attract new customers,” he said.

“So we are potentially not charging as much as we need to cover all costs because we want to make sure that when we get through these difficult times and get back to a more normalized cost rate, we will have those customers,” he added. .

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