27 November 2010

Domino's Pizza: A Franchising Oops Moment...


A Domino's Pizza store in Quakers Hill has copped a fine from the NSW Food Authority. The fine just happens to be a big one, the biggest so far in 2010. The fine is a hefty AUD 116,000 for the franchisee, Austotal Enterprise Partners. In addition, the director was fined a further AUD13,500 for some 24 breaches of the NSW Food Act.

The breaches primarily related to the endangering of customer health through the preparation of food in unsafe conditions. These conditions included preparing food amongst filthy appliances and rotting food. These breaches might not have been uncovered but for the complaints of customers who became violently ill from food poisoning after having eaten Domino's products.

This begs the question, "does the bad performance of a franchisee in a case such as this harm the brand as a whole?"

The reality is that this is a franchise store. It is owned by someone other than Domino's who are trading under the Domino's name.  Perhaps I should declare my past affiliations. I once managed a company-owned and then a franchisee-owned Domino's Pizza store back in a past life. Both of which were stores where the owners took their responsibilities and obligations very seriously. I believe that this is a store-specific issue and does not represent a brand-wide practice to skimp on health and safety issues in store.

Yet, that said, Domino's Pizza is Domino's Pizza no matter whose name appears in the small print on the shop-front window. So, will this harm the brand name and sales over the long term? Needles to say the store and the franchisee will be listed now on the NSW Government's name and shame file for those that breach the acceptable standards noted under the NSW Food Act.

I will order Domino's again!

8 comments:

lawbugger said...

prolific banget kamu..

I include a snippet from early last week. Sounds Indonesian to my untrained ears....

Late on Friday Commonwealth Director of Public Prosecutions Chris Craigie said evidence did exist but Mr Grech's health and the possibility of gaining a conviction were also considered.

''I am satisfied that there are some alleged disclosures which meet the evidentiary requirements of the prosecution policy of the Commonwealth …,'' Mr Craigie said.

Rob Baiton said...

@ Lawbugger...

Thanks, I think!

So, you're back? And, back to your old ways of leaving comments completely unrelated to the substance or subject matter of the post! ;)

A bit harsh on Indonesia, don't you think? I am sure that this sort of thing happens all around the world.

Perhaps the latest cache of Wikileaks documents / cables will prove that point.

Nevertheless, I will respond.

It is pretty simple really, the CDPP thought about taking this to trial, thought about what the defense might argue, accepts that there is sufficient evidence to prove that a crime was committed, and the health of Grech, and then came to the conclusion that is this case went to trial then there is a significant likelihood that Grech would not be convicted.

That does not sound Indonesian to me, unless one factors in a deponering angle. Otherwise, this just sounds like the usually legal assessment that is done on whether to take any case to trial.

Andrew said...

Hey guys, this is Andrew from Domino’s. I just wanted to say that Domino’s takes health concerns and violations very seriously. We strive to deliver the best tasting product in a healthy environment and make sure that our stores are consistently up to health standards. Thanks!

Rob Baiton said...

@ Andrew...

Thanks for dropping by and leaving a comment.

I think the original post makes the point that this is not a company-wide deal. The post also distinguishes between company-owned and franchisee-owned stores.

I followed your link and found a blank blog called "The Party Pit". Blank in that there are no posts.

Be interested in learning what your interest is in the Domino's brand with respect to The Party Pit.

But, I am wondering why the pies on the advertising material are always so much better topped than the pie I go an pick up from my local store.

Yes, I understand that there is a formula and all product is measured and weighed. That said, the last time I was in a Domino's store, I watched my order getting made, and the person making it weighed none of the toppings that went on it.

When I opened the box and checked the pie I pointed out to the young fellow that I could see the sauce and that in some places you could actually point to individual bits of shredded cheese. I also pointed out that on the 7 meats pizza that I ordered I could count only 5 different types of meat, and one of those meats was a mere 5 pieces of pepperoni...

You mentioned consistent standards. I wonder if there is such a thing. Using the example above, the franchisee must be making a killing in terms of profits!

comprar yate said...

I read so much helpful data above!

Joseph Carr said...

@Andrew: It’s good to hear that you guys from Domino’s Pizza are doing your best to provide your customers with great products and services. Regardless of the incident, I hope that it will not get in the way of you maintaining a good reputation in the pizza industry.

Rob Baiton said...

It has been a long time since I worried about responding to comments...easy come, easy go; at least in the sense of not being a regular blogger for quite some time.

@ Comprar: glad to have been an information service.

@ Joseph: As I said this really was a post about a particular incident at a particular store. I used to work for the company. I have no complaints about my time there. So much so that once I left a full time management position with them I went and got myself re-employed as a driver.

Clint Shaff said...

Franchise-owned or company-owned, a company must assure that they’ll satisfy the customers. Well, things happen sometimes, but they happen rarely. Domino’s Pizza is one of my choices for best pizza, though I experienced mishaps with the service in some of their branches. I guess the way I love their pizza will always be the reason for me to keep coming back. :D

- Clint Shaff -