Customers outraged over Domino's new penalty rates

"Either raise your prices to accommodate the cost or take the hit."

Lily McCaffrey

2 min read

June 18, 2024 - 1:31PM

Domino's to close under-performing stores

Family Life

Don't miss out on the headlines from Family Life. Followed categories will be added to My News.

Domino’s customers have vented their frustration online after signs were spotted in one of the pizza chain’s stores informing patrons they would be hit by a 10 per cent Sunday surcharge and a 1.4 per cent eftpos fee.

A photograph of the signs was posted on Reddit on Saturday, sparking a heated online debate about surcharge fees in Australia.

The first sign informed customers that on Sundays the store would apply “up to a 10 per cent surcharge on all orders, to allow for penalty rates for our team members”, while the second sign said a 1.4 per cent surcharge would apply to all eftpos transactions processed in store.

Want to join the family? Sign up to our Kidspot newsletter for more stories like this.

“Note this does not apply to orders prepaid online,” the sign also stated.

Both signs thanked patrons for their support and said their feedback was welcomed.

A Sunday surcharge and eftpos surcharge in a Domino's store has sparked outrage. Picture: Reddit

"Can we just outlaw surcharges like other countries have"

One commentator on Reddit criticised the pizza chain, telling it to “either raise your prices to accommodate the cost or take the hit”.

“Can we just hurry up and outlaw surcharges like other countries have,” the commentator said.

Another called it “bulls**t” but said “at least they acknowledge it with a clear sign”.

“You realise this is standard in most cafes and fast food now right?” they wrote.

“Blame the government and their banks not the business,” another wrote.

The signs led to an online debate about surcharges. Picture: NewsWire / Brenton Edwards

"Running a small business involves numerous expenses"

It turned out that the Sunday surcharge was nothing new, with a Domino’s spokesperson confirming to NewsWire that the surcharge was introduced eight years ago, in 2016.

The spokesperson said the majority of its more than 750 stores were independently owned and operated by local community members.

“As many know, running a small business involves numerous expenses, including delivering high-quality products, convenient services and, crucially, fair compensation for dedicated team members,” the spokesperson said.

Introducing our new podcast: Mum Club! Listen and subscribe wherever you get your podcasts so you never miss an episode.

“At Domino’s, our team members aren’t just the backbone of our operations, they are the secret sauce, and on Sundays they receive wages that are up to 50 per cent higher than on weekdays.

“As a result, in 2016 we introduced a small Sunday surcharge to allow for these higher wages, which are amongst the highest in our industry, while keeping our prices lower on other days.”

"We know every dollar counts for our customers"

While the Sunday surcharge applies nationwide, the eftpos surcharge is only in place in some stores at the discretion of the franchise partner.

“Some franchise partners may apply a small eftpos surcharge to offset the costs charged by banks and card providers,” the spokesperson said.

“This is managed at a store level and will always be clearly communicated, with alternative payment options like cash or ordering online readily available.

“We know that every dollar counts for our customers and are committed to delivering unbeatable value and service with every Domino’s experience.”