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!

Domino's Pizza -- Indonesia

I am sure Domino's Pizza opened up in Indonesia once before and did not do so well! If I am not mistaken it morphed into something called Pizza Express. I am pretty sure that I once ordered a couple of pizzas for the office from Pizza Express and the delivery bloke was kitted out in Domino's gear.

Whatever. It seems that the current franchise holders, PT Mitra Adiperkasa, have decided to throw some cash at re-opening the Domino's chain by throwing a considerable sum of cash at it. The first store is scheduled to open on 15 August in Pondok Indah.

Why does this interest me? I used to work for Domino's in Australia and managed a couple of stores there. I did well enough at it that I had the opportunity to meet the founder of the company, Tom Monaghan. The fella gave me a real expensive pen and pencil for reaching some ludicrously high sales target that no one thought was possible (at least in the amount of time that I did it in). So, maybe they can give me a job at a local store.

Domino's Pizza is all about delivery and take out. Therefore, it is also all about location. So, it will be interesting to see where the franchise holder will open other stores. The other issue is price and that is one of the reasons Domino's has done well in other markets in the past. Good pizza at a good price is hard to find.

Nevertheless, and in my most sarcastic voice, more fast food is just what Indonesia needs, right?