Domino's to shake up menu, scrap discounts after first annual loss in 20 years
Domino's Pizza Enterprises, Australia's largest pizza chain, has posted its first annual profit loss in about 20 years, prompting promises of a major restructure.
The chain, which operates more than 3800 stores in Australia, New Zealand, Asia, and Europe, suffered a loss of $3.7 million in net profit after tax for the 2024-2025 financial year.
Dividends for shareholders also fell to 21.5 cents, down from 50.4 cents the previous year.
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Dominos has posted an annual loss for the first time in years. Instagram
Earnings before interest and tax across the chain fell 4.6 per cent to $198.1 million.
Executive chair Jack Cowin, billionaire fast food magnate and Hungry Jacks founder, has reportedly responded with a plan to slash Domino's array of discounts and specials, and instead offer reduced prices more broadly.
"You don't know what the hell you're going to get," Cowin said in an interview, as reported by the Australian Financial Review.
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The chain will simplify its menu offerings. Supplied
"One of the problems is people getting clarity about what is a good deal – it's 50 per cent off what?"
In a release, Cowin said the company would make Domino's a "leaner, more efficient business".
"That means reducing costs – and using those savings to support our franchise partners and invest in marketing that drives sales," he said.
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Domino's executive chair Jack Cowin. Nine
"We will share the rewards when we get it right – with customers, with partners, and with shareholders."
Despite the chain's global pressures, it remains strong in Australia and New Zealand, boasting record profits in the past financial year.
"A structured menu reduction program is now underway, aimed at improving product quality scores, as measured by customers, and simplifying store operations – both to improve franchisee profitability," Domino's end-of-year release said.
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The company also saw growth in Taiwan, Malaysia, Cambodia, and Singapore in Asia, and Germany and Benelux (an economic partnership between Belgium, the Netherlands, and Luxembourg) in Europe.
But there were ongoing "challenges" in France and particularly in Japan.
In the latter country, Domino's shuttered hundreds of stores in the past financial year, contributing a whopping $118.4 million in one-off expenses (of a total $162.3 million) in a group-wide restructure.
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