Australia's largest pizza chain is set to cut the number of short-term promotions in a bid to boost long-term demand.
Recently appointed Domino’s Pizza Enterprises chief executive Andrew Gregory addressed the company’s annual meeting in Brisbane on Wednesday.
He said it had seen major improvements in the share price - from $15.10 to $22.83 - in the past financial year, as well as a $47.4 million increase in free cash flow.
This was due to a “reset” ordered by billionaire chair Jack Cowin in 2025 in response to a slump in sales, Mr Gregory said.
Mr Gregory said his plan for the growth of the fast-food chain focused on reducing the number of limited-time offers.
Such offers created supply-chain issues and made shops more difficult to run for franchisees, he said.
“That can give us a short-term burst of sales, but we need to build demand that lasts,” Mr Gregory told the meeting.
“Short-term promotions will still have a role, but there will be fewer of them, and they will be proven and tested.”
He said the company had also made a major change in September, now offering Coca-Cola-branded beverages rather than Pepsi products.
"This is a consumer-led decision," Mr Gregory said.
Mr Cowin, in his speech, addressed media reports in the Australian Financial Review of growing tensions between the company and its franchisees as “totally uncalled for”.
The outlet reported that many struggling franchisees were behind on their tax payments amid stalled mediation talks with the company over their franchising fees.
“We have regular, robust discussions about how we can work better and be better together,” Mr Cowin said.
“That is a healthy franchise system.”
He said store margins had improved, resulting in confidence being rebuilt across the franchisee network.
