Domino’s Pizza Facing Parliamentary Inquiry Into Its Franchising

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Some of the most delicious pizzas you can find in Australia are not from the big well known brands but small businesses like Gymea pizza that cooks the Italian dish to perfection. Pizza which is a traditional Italian dish is made from flatbread with toppings that include tomato sauce, cheese, vegetables and meats before it baked in an oven.

One of the well known brands of pizza is Domino Pizza that is now facing a parliamentary inquiry into its franchising. According to market analysts, aside from the downgraded shares of Domino’s Pizza, there is also an investigation into allegations of worker exploitations. City analysts have slapped a “sell” rating on the Australian fast food chain. Credit Suisse has also downgraded the company to “underperform” and sparked a sell-off that saw share prices sinking by more than 9%.

According to Credit Suisse, Domino’s moving of its staff in Australia on to award wages in January and the crackdown of underpayment as per Fair Work Ombudsmen investigation into the fast food chain has resulted into a reduction in profitability in a part of its network. However, these issues appear to be under appreciated by the market.

In fact, the market has shown remarkable lack of concern on the unknown impact of the franchise’s profitability on wages compliance which resulted into the review undertaken by Fair Work. The parliamentary investigation on franchising certainly carried a lot of risks for Domino Pizza because it could result into new rules that will force greater transparency in agreements with store owners.

According to Credit Suisse, Domino’s Pizza in Japan is also facing issues with industry feedback that suggests pizza delivery market has fallen in the last 6 months because local Japanese cuisines are gaining their market share. Sales have fallen by 0.1% since 2015 which means that the company has to examine store locations and hasten their move to a franchising structure.

An intimate setting awaits you at Gymea pizza with booths and family dining tables to enjoy pizza made by Italian chefs. Aside from pizza perfection, there are other options like the American burger, fried chicken and hotdogs. However, do not forget to leave some room for coffee and gelato.

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