Smaller pizza trial looms in bid to cut costs
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.”