Domino’s Pizza scraps extra delivery fee as customers cut back buying pizzas

Domino’s Pizza has backflipped on a controversial policy as fewer customers flocked to the popular food chain.

Domino’s Pizza has backflipped on a controversial policy that lumped customers with an extra seven per cent fee if they ordered a delivery.

The popular fast food giant has scrapped its so-called ‘Delivery Service Fee’, less than a year after introducing it amid Australia’s cost of living crisis.

In July last year, news.com.au reported the service fee added an extra $1.80 to an average $30 pizza delivery purchase.

At the time, Domino’s blamed passing the price increase onto customers on the “rising cost of fuel, food and utilities, and (to) ensure we can continue to train and retain our team members”.

But on Tuesday, the pizza chain announced it was canning the service fee, calling the move a “win” for customers as inflation runs rampant.

The news comes as just several months earlier, Domino’s Pizza was caught in the throes of a share price bloodbath as the company revealed the cost of living crisis was causing customers to cut back on buying pizzas and repeat orders dropped after it lifted prices.

Its share price plunged by 23.8 per cent in late February off the back of the revelation.

Overall, in recent years its shares have plummeted after reaching a peak at more than $160 in September 2021 amid the post-Covid boom before slumping to around $72 in the past year.

Domino’s Pizza suffered a share price bloodbath as less cash-strapped customers frequented the global chain.

Domino’s Australian and New Zealand chief executive Josh Kilimnik said the removal of the extra fee was to help out customers doing it tough in Australia’s cost of living crisis.

“We introduced this fee because we felt it was the best option at the time to protect the livelihoods of our franchisees, who are small business owners in their local communities,” Mr Kilimnik said.

“However, we know that our customers are feeling the pinch too – with interest rates, rents and household bills going up and up.

“At the end of the day, what is a win for our customers is a win for our franchisees – as the best way for our stores to grow profits is by serving more customers.

“We have made the decision to remove this fee because we want more customers to be able to enjoy the convenience of delivery, and we hope this change goes a long way to making that possible.”

The pizza giant’s delivery pricing has now reverted back to what it was prior to the additional service fee.

There is still a public holiday and Sunday surcharge, as well as a late night surcharge and extra money to ensure the pizza/s arrives within a 15 or 20 minute window.

The more pizza you order, the more reduced the delivery fee is.

Domino’s has removed the 7 per cent extra charge. Picture: NewsWire / Sarah Marshall

According to recent data from the Bureau of Statistics, up until the 12 months to April, Australia’s inflation rate is up 6.8 per cent compared to last year.

Fast food and grocery giants have sparked outrage from customers as they pass the rising costs onto their customers.

Last year, KFC caused ire by putting cabbage in their burgers amid rising costs of lettuce and a shortage.

Then just last month, Woolworths admitted to “reluctantly” lifting the price of its hot roast chickens, to $12, up considerably from the $8 price tag in 2015.

Originally published as Domino’s Pizza scraps extra delivery fee as customers cut back buying pizzas