Fast food giant swaps out Pepsi for Coca-Cola ending 11-year partnership

Domino’s Australia has dropped its decade-long Pepsi partnership to return to Coca-Cola, in line with the US arm of its business.

And the pizza chain isn’t the only fast-food brand making the switch.

KFC in the US has followed suit, ditching its 41-year partnership with PepsiCo. As it stands, KFC Australia is sticking with Pepsi, for now, and for all markets outside the US.

Pepsi is also served at Taco Bell in Australia. However, McDonald’s, Hungry Jack’s, Subway, and Pizza Hut all serve Coca-Cola.

McDonald’s Australia has served Coca-Cola since the fast-food chain opened its very first Australian restaurant in May 1971 at Yagoona, Sydney, marking the beginnings of a 55-year partnership.

Unlike competitors Domino’s and KFC, which have periodically switched beverage suppliers or tested different market arrangements, McDonald’s global supply framework has maintained an exclusive partnership with Coca-Cola across its entire footprint since the franchise’s inception.

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Domino’s Australia last served Coca-Cola in 2015 before changing to Pepsi. Nathan Scholz, Chief Customer Office at Domino’s Australia told nine.com.au this latest change back to Coca-Cola is a “natural choice” for the pizza giant.

“It’s the most popular soft drink brand within Australia and, based on customer feedback, it matches what our customers are looking for,” he said.

Australia was one of the last remaining Domino’s markets not serving Coca-Cola. Most of the brand’s international markets had already made the change.

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Scholz said the significance of the switch wasn’t lost on them, with drinks an “integral part of the meal” for Domino’s customers in addition to its iconic pizzas and desserts.

The fast food giant found that the vast majority of its customers had a “clear preference” for Coca-Cola when it came to their preferred beverage brand.

“That’s a really fascinating part of what we see because when we look at customer data and customer feedback, there are some people who are somewhat agnostic, but the vast majority of people do actually have a clear preference,” he said.

Others, were dedicated Coca-Cola drinkers and with Domino’s biggest competitor, Pizza Hut, serving Coca-Cola during Domino’s Australia’s Pepsi era, it made sense for Domino’s to switch.

“Some customers would go and order their Domino’s meal, and then go to a nearby convenience store or supermarket to get Coca-Cola beverages. It’s completely absolute. You see that in the data as well.“

Data by Domino’s Australia found differing drink preferences across the country.

“The ACT actually has by far the highest Coke No Sugar preference across our business. When they’re choosing it as part of their meal choice, it’s 20 per cent higher than other states. And the Northern Territory is most strongly the other way. So they most strongly favour full sugar Coke, and they have the lowest Coke No Sugar in the country.

“So there’s clearly something about different personalities and the drink choice and what they identify with ... if it’s Coke, Coke No Sugar, or if it’s Fanta, we just want to give them what they’re looking for.”

So far customer feedback on the switch has been positive, he said.

Domino’s announced earlier this year its shift away on a historic focus from cheap single pizzas to offering value through meals to its customers grappling with cost of living pressures.

“What we’re seeing is a real shift towards that full meal,” he said. “So customers aren’t just ordering a pizza, they’re getting a full spread.”

Its most popular meal deal is pizza, a bottle of soft drink and a side of garlic bread.

“We’re the largest seller of garlic bread in Australia and so it’s an important part of a Domino’s meal,” he said.