Domino’s Pizza Slashes Discounts and Reshapes Menu After Annual Loss

August 28, 2025 | Dubai, UAE: Domino’s Pizza has declared radical alterations to its worldwide plan after recording its first Domino’s Pizza Annual loss in the last 20 years or so. The fast-food empire, which has more than 3,800 shops spread over Australia, New Zealand, Asia, and Europe, was last year in the red by $3.7 million for the 2024–2025 fiscal year.

The dividends were substantially lower resulting in 21.5 cents compared to 50.4 cents the previous year, and earnings before interest and tax fell by 4.6% reaching $198.1 million. Jack Cowin, the Executive chair, the founder of Hungry Jack’s, and the leading person of the fast-food industry, made clear a conception of combining simplification of operations with cutting of excessive promotions and also offering customers a more comprehensive and material pricing.

In an interview with the Australian Financial Review, when asked how the customers would know what they will get with the company’s new strategy, Cowin replied, “You don’t know what the hell you’re going to get. One of the problems is people getting clarity about what is a good deal – it’s 50 per cent off what?”

Domino’s Pizza Changes Its Strategy after a Loss to Regain ground

The Domino’s Pizza annual loss is the beginning of a new era for the company, leading the team to announce a “structured menu reduction program” as the first step towards streamlining operations, raising product quality, and enhancing franchisee profit.

Jack Cowin said that the company would be concentrating on creating “a leaner and more efficient business” and said that they had plans to decrease costs and use the savings to stimulate the company through marketing.

“Domino’s Pizza will share the rewards when it gets it right – with customers, with partners, and with shareholders,” Cowin stated in the company’s year-end report.

The menu changes will see the discarding of discounts and specials that have in recent times been a source of confusion for customers in terms of value perception and have been inconsistent in terms of value. Instead, Domino’s Pizza will also use clear pricing and targeted promotions that will attract customers and franchise owners.

The company, however, suffered great restructuring costs globally, including $118.4 million in one-off expenses from closed stores in Japan but, on the positive side, it still performs well in Australia and New Zealand where it made record profits last year.

Global Operations Show Mixed Results Amid Domino’s Pizza Annual Loss

The Domino’s Pizza Annual loss notwithstanding, the brand is still strong in certain parts of the world such as Taiwan, Malaysia, Cambodia, and Singapore in Asia, as well as in Germany and Benelux (Belgium, the Netherlands, and Luxembourg) in Europe where it has shown good growth.

That said, some troubles remain in France and Japan, where many stores have been closed over the past financial year. The shutting down of these stores is only a part of the group-wide restructure, which has led to $162.3 million in one-off expenses.

The executives are positive that these changes will enable Domino’s Pizza to stabilize its international operations and at the same time deepen its stronghold in the Australian and New Zealand market. 

The company’s statement read that the structured menu reduction program was already in progress. It will raise customer quality ratings, simplify store operations, both of which will result in franchisee profitability, the statement added.

The company has made a commitment that it would concentrate again on creating value. The franchisees, as a result of the restructuring, will be relieved from the operational part as the processes will be simplified and the complexity will be reduced. The changes to come signify for customers a more uniform product range, pricing that is easier to understand, and a better experience of eating out.

In a discussion about the situation, Cowin, the person who was in charge of the growth of Domino’s Pizza for the past many years, mentioned that he was still very optimistic: “We are really altering the way we do business for the next chapter. It will not only change our next 20 years of success but also the quality of success.”

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