This Aussie Fast Food Success Story Could Be In BIG Trouble
Dominos has been increasing in popularity year after year, and is fast becoming Aussie’s pizza place of choice.
Dominos is known for it’s fast and affordable pizza and here in Australia the sky seemed to be the limit for the global company.
However Domino’s profits could be set to take a massive hit because the pizza chain are being forced give their staff a pay rise.
Up until this point Dominos have not been paying staff weekend penalty rates.
It’s believed this will push staff costs up by 14 per cent and this could affect the company’s profits by as much as 24 per cent.
“We believe penalty rates will need to be paid at some point which could have a significant impact on (Domino’s Australian stores) profitability,” a Deutsche Bank report said.
“If Domino’s were forced to pay penalty rates, in line with the award, it would represent a significant cost impost because the hours of operation generally extend into times which attract penalty rates.”