At an investor update day in Brisbane yesterday, chief executive Don Meij revealed that $5.4 million had been recovered for unpaid wages and superannuation since 2014.

By Joe McDonough

Posted on October 10, 2017

Domino’s Pizza Enterprises says it has reimbursed its underpaid Australian staff to the tune of $5.4 million, with two months of its national audit still to run.

At an investor update day in Brisbane, chief executive Don Meij, revealed the total that had been recovered and redistributed to staff for unpaid wages and superannuation since 2014.

It has finalised the audit of 322 of its 666 stores nation-wide.

In March, the investigation was extended across its national network after the Fair Work Ombudsman came on board, following media reports of underpayments to staff. The investigation is likely to be completed by the end of December.

Mr Meij said the findings thus far had been positive, with only one franchisee being referred for further examination during the Deloitte-led audit. “The media was talking as if this was all Domino’s – that’s very unfair – the fact that only a single store has been referred for further audit illustrates that its not the majority, it’s the minority of the franchisees,” he said.

“The fact that we found only one person out of the last 322 stores audited is very encouraging to us, its certainly looking very good at the moment compared to where we were in the first three years.”

At the investor day, Mr Meij also outlined the improvements to the fast-food chain’s ‘360-degree’ performance management software used in its franchises.

“This is not an auditing program, it’s a self-assessment tool which allows franchisees to view their business as part of their peer group and on top of that we also get to look at the business and encourage people to chase better performances,” he explained.

Other changes include customers being able to have pizzas delivered without using a specific street address, i.e. to parks and beaches, by simply dropping a location pin using GPS. And incredibly, Mr Meij said “delivery by drone will soon be commonplace”, with plans in motion to see suitable New Zealand stores adopt the technology early next year.

Delivery by drone will soon be commonplace

Australian Drone designer Flirtey has been engaged to design a second-generation drone that will be able to carry more pizzas, drinks and side orders over longer distances.

Mr Meij told the Australian Financial Review its Australian and New Zealand business is on the improve, after Morgan Stanley reported that its profit margins were way down on the rest of the world despite generating the highest sales per store globally.

“In any large system there’s always room for improvement,” Mr Meij told The Australian Financial Review. “All businesses should be going through an endless improvement process – I don’t think we’re unique in that. This is the Domino’s way of doing that.

“At another period of time Australian franchisees might be more profitable,” he continued. “We can say that the majority of our franchisees are growing their profitability, be it in windows of time.”