Very interesting article from the Sydney Morning Herald:
http://www.smh.com.au/interactive/2017/the-dominos-effect/
Do I think it's happening in NZ as well? With 40-50% off pizza coupons, I'm guessing yes. Perhaps it's something for you to think about before you order your next pizza.
They are just following Caltex and 7-11's tactics in Oz.
Also considering Domions' HQ takes 20% off each sale and charges the Franchisee ridiculous fees on top; its no surprise really….
I wonder if Domino's makes a loss from a 40-50% off Pizza? If there weren't any 40-50% off coupons I probably wouldn't buy one.
Yar your the only reason i've brought pizza from them in the last few months
I also read somewhere NZ and AUS have crazy low prices for domino's already. The article mentioned the pizzas only cost 1.30 euro or something (I doubt that includes rent, depreciation of equipment or wages etc). Ill see if I can find it. Not 100% sure this is the one but looks close enough: http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&o…
According to this article, from a $5 value pizza Domino's make $1 after ingredients and Domino's cut.
And that's without discounts
Not normally discounts for the $5 pizzas though.
http://www.news.com.au/finance/business/retail/dominos-retur…
Some more interesting numbers for the AU market
http://nzherald.co.nz/business/news/article.cfm?c_id=3&objec…
In its results briefing, the company sought to reassure shareholders after revealing it had returned A$4.5m in unpaid wages to staff over the last three years and seen 26 franchisees leave after internal audits.
Meij said the there was "no correlation between store profitability and the underpayment of staff wages" and the company had zero tolerance for unethical behaviour.
"I make no apologies for expecting the highest standards from our franchisees," Meij said.
"Due to our investment in proactive compliance we have identified some franchisees who have wilfully breached their obligations to their team members."
Domino's said over the past three years, it had conducted 456 store spot checks, completed 102 store audits via a third-party audit process, with 42 ongoing, and investigated 88 individual complaints, with 25 ongoing.
Bush said he was aware of the issues in Australia but said the New Zealand branch regularly did audits to ensure this was not happening.
"The [franchise issues] haven't affected New Zealand at all at this stage," Bush said.
"Obviously I'm aware of what's been in the media and everything else but at this point it hasn't affected the New Zealand business and there's no reason why it should."
The Aussie guy said the exact same thing, that it wasn't happening there (To the extent reported). Yet the reports and worker accounts were completely different to the company statement. It is highly likely that it is happening here, and not only a problem with this chain.
One of the problems with high wage countries like NZ and Aus, there are always people out there trying to dodge it.
Who pays full price for a chain pizza? It is a bit like retail chains these days, where you only really buy stuff if it is on special.