Smaller pizza trial looms in bid to cut costs

Townsville Bulletin - - NEWS -

THE na­tion’s largest pizza chain, Domino’s, could be set to slice the size of its piz­zas, an an­a­lyst re­port says.

Deutsche Bank an­a­lyst Michael Si­mo­tas says he un­der­stands the com­pany will shortly be­gin a trial of smaller piz­zas as part of a strat­egy to cut food costs in an at­tempt to re­duce cost pres­sure stem­ming from re­cent changes that in­creased penalty rates for em­ploy­ees.

“We ... un­der­stand Domino’s is plan­ning to re­duce the size of its piz­zas to pro­vide ad­di­tional cost re­lief,” Mr Si­mo­tas said in a brief­ing note yes­ter­day. “Domino’s has al­ready con­ducted tri­als on sell­ing Pepsi prod­ucts and is about to con­duct tri­als on the smaller piz­zas, but we see some risk to con­sumer per­cep­tion from both of these ini­tia­tives.”

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