Smaller slice of the pie no pizza the action for Alberto
The nation’s biggest pizza chain, Domino’s, may be about to shrink its meal sizes.
There could be fewer slices of pizza to fight over at dinner time if the nation’s biggest pizza chain, Domino’s, decides to shrink its meal sizes in an attempt to cover the impact of higher rent, electricity and labour costs while keeping a lid on its customer price.
A growing trend overseas, “food shrinkage” has hit Australia and is targeting some of our more loved foods, sweets and treats. Pizzas could be next.
Recently, Allen’s cut its famed Killer Python lolly in half, citing health concerns, while popular Swiss chocolate brand Toblerone shaved 10 per cent from the size of its chocolate bar in what some consumer activists called a sneaky way to shrink the product while charging the same price to cope with higher input costs.
The company nearly caused a global furore last year when it tried to widen the spacing between its “Swiss Alps” triangles of chocolate to cover rising commodity costs.
Now a report says the Domino’s chain is trialling smaller pizzas. “We also understand Domino’s is planning to reduce the size of its pizzas to provide additional cost relief,’’ said Deutsche Bank analyst Michael Simotas in a report to his wealthy clients.
It came as Domino’s is reported to have dumped Coca-Cola from its menu for the cheaper Pepsi, to combat higher prices and stagnant household income that has seen Australian workers register the slowest growth in wages for 30 years.
Domino’s operates four labs, known inside the company as “love labs”, in Brisbane, Paris, Tokyo and The Netherlands, where expert chefs experiment with pizza toppings, among other things.
A spokesman for Domino’s yesterday refused to confirm or deny it was experimenting with smaller pizza sizes, but confirmed its “development kitchen” was trialling new products. “It is unfortunate that the Deutsche Bank note today provides information on our menu development that has been taken out of context.
“Domino’s development kitchen is working on an enhanced menu to cater for our customers’ diverse taste requirements, including new pizzas, sides and desserts.”
For independent pizza store owners such as Alberto Talarico, the cost pressures are similar but he has resisted raising prices at his pizzeria in Newtown, in inner-western Sydney, which has been running for 37 years.
“We haven’t changed prices in two years, but I think eventually I will have to … it could even be this month or maybe next month,’’ the 76-year-old former professional piano accordion player said.
“My other costs have gone up 10 or 15 per cent, things like electricity, rent, staff … have gone up a lot actually. Everything goes up, mate, up and up, and we have to work hard to keep things going.’’
Mr Talarico said he would never skimp on the quality of his ingredients or play sneaky tricks such as reducing his pizza sizes.
“It wouldn’t work to make it smaller or use less toppings … no, mate, that’s not my style of doing things.
“I won’t change that — people like my pizzas as they are.’’