Sales down but franchisee profits up as brand ends discounting
Domino’s Pizza Enterprises (DPE), the Australian operator of Domino’s in Australia, New Zealand, Japan, Malaysia, and western Europe, has closed 29 Australian stores and stopped discounting in an effort to protect franchisee profits, according to a media report.
Despite a 4.7% decline of same store sales in Australia, DPE’s new strategy of an everyday low price menu model rather than discounting and promotions, has proven successful in a trial of targeted stores in Western Australia. Profits improved by more than 30% when menus were priced appropriately upfront. A new pricing model is also being tried in Japan.
In July, US-based listed franchisor parent company Domino’s Pizza Inc. singled-out DPE for lower-than-expected international sales. Domino’s believes order counts are essential to same store sales and profit numbers and is working with DPE to create the right kind of value to recapture order counts. DPE will be led by a new CEO, effective August 5. Read more
Liquidated franchise brand sold to new operator
The intellectual property and wholesale inventory of Australia’s largest barbecue and outdoor furniture retail chain Barbeques Galore has been acquired by Melbourne-headquartered camping, outdoor, and military surplus gear wholesaler, ACOM International, according to a media report.
Barbeques Galore was placed into voluntary administration in February, just months after it was bought by a United States-based private equity firm, Gordon Brothers, in late 2025. Upon entering administration, the business owed a total of $49 million to nearly 400 creditors. By May, Barbeques Galore was set to emerge from administration after administrators determined that a proposed restructuring by Gordon Brothers via a deed of company arrangement (DOCA) was the best outcome for all stakeholders. The Gordon Brother’s proposal was supported by creditors but negotiations with other parties, including landlords and suppliers, failed to reach acceptable commercial trade terms resulting in the business transition winding up, effective from 16 June.
Under ACOM’s stewardship, 24 of 27 independent Barbeques Galore stores will transition from a franchisee model to a licence arrangement. Meanwhile, 62 company-owned stores have been closed and the jobs of 500 employees terminated. Read more 1; Read more 2
Food chain turns customer sacking into marketing opportunity
KFC Australia has used the sacking of a customer by his employer into a marketing opportunity that has gone viral on social media, according to a media report.
The dismissal of a veteran Australia Post postman after he made an unscheduled detour to enjoy some KFC for lunch – a dismissal upheld by the Fair Work Commission reportedly because of a broader pattern of misconduct by the former employee – is the basis for KFC’s promotional campaign. KFC is posting postcards addressed to KFC restaurants which need to be delivered in person and can be redeemed for a free Zinger Box, thereby affording the delivering postie a legitimate reason for being on the premises “strictly on official business.” KFC’s announcement of the PR move on Instagram generated 11,000 likes within a few hours, with chocolate brand KitKat also publicly supporting KFC and posties on the social media platform. Read more
Franchise fined $35m for misleading representations
Listed electronics and furniture retail chain Harvey Norman has been fined $35 million for running misleading and deceptive advertising in partnership with financial services company Latitude which was also fined $20 million, according to a media report.
The Federal Court made the orders against both Harvey Norman and Latitude, finalising a case that was launched by the Australian Securities and Investments Commission (ASIC) against both companies in 2022. The case related to Harvey Norman promoting payment plans financed by Latitude which were advertised as “no deposit” and “interest free” but which failed to disclose that customers wanting to access these benefits needed to apply for a Latitude GO Mastercard with associated sign-up and monthly fees. In 2024, the Federal Court established that Harvey Norman and Latitude had engaged in misleading conduct and made false or misleading representations to customers, a ruling which the companies appealed and lost in 2025.
ASIC sought penalties of $50 million against Harvey Norman and $35 million against Latitudewhich were reduced to $35 million for Harvey Norman and $20 million for Latitude $20 million, and weighted by the court according to the difference in attitude by each company in relation to the offences committed. Latitude apologised to customers and provided the Court with evidence that they were improving their compliance processes, but Harvey Norman launched a broadside against the legal system and refused to offer a personal apology to customers.
Plaintiffs in another class action launched in April against the companies are seeking claims for restitution, that relevant consumer agreements with Latitude are declared as null and void, and payment of damages, interest, and costs. Read more
Franchisor fined for three Code breaches
Payment service provider franchise Venue Smart has been fined $59,400 after breaching the Franchising Code of Conduct (2024), according to an Australian Competition & Consumer Commission (ACCC) statement.
The ACCC issued Venue Smart three infringement notices for separate alleged contraventions of the Code, two related to the company’s marketing fund and the third related to the Franchise Disclosure Register.
Specifically, Venue Smart failed to prepare an annual financial statement for its FY24-25 marketing fund; failed to maintain a separate account with a financial institution for its marketing fund for the same period; and failed to provide information to the disclosure register at least 14 days prior to entering into a franchise agreement with a prospective franchisee. Read more
Major auto operator surrenders master license
One of the world’s largest independent automotive distributors, Inchcape, will surrender the right to sell Peugeot cars in Australia effective 2027, according to a media report.
Inchcape’s decision follows years of decline with annual Australian sales for the French marque expected to fall below 1,000 cars for the first time in decades. From a peak of 8,807 vehicles in 2007, sales have been on a steady decline to just 1,350 in 2025. Only 373 Peugeot vehicles have been delivered in the first five months of 2026. Declining sales are attributed to competition from Chinese imports with more than 220,000 Chinese manufactured vehicles being imported into and sold in Australia in 2025.
Inchcape, best known as Australia’s Subaru importer, has confirmed it will continue to support existing Peugeot servicing, stock, and warranties, and Peugeot’s parent company Stellantis has confirmed the brand will continue in Australia under a new arrangement. Read more
Burger chain pulls ad campaign after staff complaints
Australian burger chain Grill’d has removed an advertisement from its website and instructed staff to remove in-store promotional material after receiving staff complaints, according to a media report.
Grill’d employees demanded that the business retract and apologise for the advertising campaign which they deemed sexualised women and put female staff at risk of harassment. The advertisement depicted a burger resting on the lower back of a female in activewear with her midriff exposed and the headline “Super Buns to Brag About.” Complaints were lodged through Grill’d Workers United, a worker advocacy group organised by members of the United Workers Union. Five women were reportedly involved in in creating and signing off on the campaign.
Grill’d Workers United has described the capitulation as a win for staff but feel they are still owed an apology and an explanation. They have also expressed concern that employees who spoke against the advertisement may by disciplined, pressured, or targeted for doing so. The advertisement ran concurrently with a second version depicting a burger balanced on a man’s bicep with the text stating, “Super Buns, Super Guns.” No complaints were received about that version, and it has not been pulled. Read more
Franchise giant to offload international pizza brand
Yum! Brands, parent company of Pizza Hut in the United States, is selling the pizza chain to two separate buyers for a combined USD $2.7 billion, according to a media report.
Yum China will buy the mainland China business for USD $1.2 billion, while private equity firm LongRange Capital will acquire the remainder of the Pizza Hut stores in the United States and the rest of the world, for USD $1.5 billion.
Yum China is a spinoff of Yum! Brands backed by private equity firms including Primavera Capital and Ant (which is linked to the founder of online commerce platform AliBaba) and has been Pizza Hut’s longtime independent operator in mainland China since 2016, and which has grown revenue, profit per store, footprint and customer fan base.
Meanwhile, LongRange Capital is acquiring a globally-recognised brand in the USA and the rest of the world which is struggling to maintain market share as higher commodity costs, an increase in health-conscious consumers, and rising inflation negatively impact profitability. Read more
2,000 coffee stores close for sensitivity training
Starbucks Korea closed more than 2,000 of its stores for a half-day mandatory history lesson and sensitivity training following a recent marketing blunder which led to the sacking of its CEO and sparked public and political backlash, according to a media report.
The training curriculum was driven by Starbuck Korea’s disastrous May 18 “Tank Day” promotion for the company’s Tank Series of oversize coffee tumblers. May 18 is also the anniversary of the start of the 1980 Gwangju Uprising crackdown which lasted 10 days and resulted in the deaths of hundreds of demonstrators, and in the rape and sexual assault of others. Many Koreans reportedly felt Starbucks Korea’s “tank” motif related to military government vehicles deployed to crush the pro-democracy protestors rather than large coffee cups.
It is estimated that the half-day closures cost Starbucks Korea $1.4 million in sales. The billionaire chair of Shinsegae Group, which operates Starbucks under licence from its US parent company, also undertook the training with other executives, further demonstrating the seriousness of the mistake. Marketers for the company reportedly created the promotion using AI suggestions, with managers approving the campaign without opening emails to check the content. Read more
Franchisee seeks court order against corporate competitor
A franchisee of hardware chain Mitre 10 is seeking a Federal Court order which would allow him to legally contest the proposed opening of a Bunnings outlet next door to his premises in south east Queensland, according to a media report.
The court order would allow the small business operator to take Bunnings to court without the threat of paying the Bunnings’ legal bills if he loses.
The franchisee, who bought the Mitre 10 store in Jimboomba in 2018 in conjunction with his father and brother, is using the Competition and Consumer Act in his attempt to stop Bunnings from developing and opening a store on the block adjacent to his business. He is seeking damages for losses and an injunction to stop Bunnings from opening its store, arguing that Bunnings conduct has, or is likely to, substantially lessen competition in the local retail hardware market around Jimboomba. Bunnings, which is owned by listed Australian company Wesfarmers, has not commented on the matter but has previously defended itself against anti-competitive concerns. Read more
