Domino’s Australia is removing its 7 per cent delivery service fee in response to a tough spending climate.
The decision to ditch the fee, introduced in July 2022, will help customers and franchisees, said Domino’s ANZ CEO Josh Kilimnik.
“It was the best option at the time to protect the livelihoods of our franchisees. However, we know that our customers are feeling the pinch too with interest rates, rents and household bills going up and up,” he said.
“At the end of the day, what is a win for our customers is a win for our franchisees. The best way for our stores to grow profits is by serving more customers.”
Asia-Pacific CEO Kilimnik has taken on the ANZ role for a 12 month period. The previous CEO and experienced franchisee David Burness moved to a global support role.
Domino’s removes delivery fee to boost customer spend
“We have made the decision to remove this fee because we want more customers to be able to enjoy the convenience of delivery, and we hope this change goes a long way to making that possible,” Kilimnik said.
Delivery customers can now buy a Domino’s large traditional pizza for $15.
A Domino’s spokesperson said customers “appreciate a fairer, more transparent price”. The spokesperson confirmed menu pricing will not rise to replace the dropped delivery fee.
“We are constantly adjusting our national pricing and deals to ensure we are delivering the best value to our customers.”
Reduced sales hit profit margins
Profits for the half-year to 1 January 2023 fell 21.5 per cent to $71.7 million. Domino’s revealed lower than expected sales had hit profit margins for the period.
In February Domino’s Pizza Enterprises group CEO and managing director, Don Meij, commented on the results. “We talk about the Value Equation’ and are completely obsessed with getting this right, which in turn will deliver for our customers, our franchisees and our shareholders.”
