Pizza size shrinks as price rises
Pizzas from Domino’s are getting smaller and more expensive as the pizza chain struggles.
Australian-based company Domino’s Pizza Enterprises recently changed its menu in Australia and the New Zealand chain of franchises is following suit.
Domino’s New Zealand general manager Scott Bush said a new Quality Fresh menu was being rolled out in all New Zealand stores over the next 20 weeks. It includes 20 new pizzas and sides.
The new menu will scrap Chef’s Best rectangular pizzas and introduce a new Premium range.
The Premium pizzas will be slightly larger than the Chef’s Best but all other pizzas, which make up 60 per cent of the menu, will be smaller.
‘‘Prices are set individually by each store, so they can vary. However, at one store a premium pizza is $15.99, a traditional $12.99, and an extra value is currently $5,’’ Bush said.
Domino’s pizza prices differ depending on the store. The Premium pizzas will, however, be among the most expensive. ‘‘Most of our customers use special offers or coupons,’’ Bush said.
In a document sent to franchisees the company said the new menu would help emphasise quality and freshness over price.
Domino’s made A$105.8 million (NZ$114 million) in profit after tax in the year to July 2, up from A$86.6m the previous year.
But this fell significantly short of its full-year profit expectations on Tuesday due to sluggish sales in Japan and France.
The result announcement saw the pizza giant’s shares plunge A$10 to A$41.50 on Tuesday.
The shares were trading at A$43.33 yesterday afternoon.