dominos sign

Global pizza delivery chain Domino's Pizza is headquartered in Ann Arbor Township, where it employs between 550 and 600 people.

(Melanie Maxwell | The Ann Arbor News)

With the job market tightening and wage increases announced by companies like Walmart and McDonald's, Domino's CEO Patrick Doyle said the company will have to follow suit and raise employees' pay.

Doyle's statement came during an interview on CNBC's "The Squawk Box" last week.

"The reality is the labor market is tightening up, and we've got to respond to that. It's getting harder to hire people," Doyle said. "That drives wages up and that's a great thing. We have to do what the market demands."

During the interview, Doyle said the wage increase would come at the stores owned by Domino's. Currently, the company owns about 400 locations - roughly 10 percent of all Domino's - with the rest being franchised locations.

The wage increase at franchised locations would be up to the owner of the individual stores and not mandated by Domino's, which is based in Ann Arbor.

"We're majority franchised so they make that decision themselves," Doyle said. "But for our own stores... we've got to pay more to get the right people."

Earlier this month, both McDonald's and Walmart announced they would be increasing wages for workers above minimum wage. Walmart employees in Michigan are now making $13 an hour and all associates nationwide make at least $9.

McDonald's employees at corporate-owned stores make at least $1 an hour more than minimum wage, putting Michigan workers at a minimum of $9.15 currently.

Doyle did not say what Domino's pays employees at its corporate-owned restaurants.

Matt Durr is a business reporter for The Ann Arbor News. Email him at mattdurr@mlive.com or follow him on Twitter.