Domino's to take WA model national after removal of loss-leading deals lifts store EBITDA 30%
The move follows the brand's earlier announcement to axe discounting.
Domino's Pizza Enterprises (DPE) will progressively roll out a new operating model across the rest of Australia during FY2027, after a Western Australian pilot lifted average store EBITDA by approximately 30% over the five months to May.
The WA trial combined simplified pricing, operational improvements and the removal of loss-leading promotional activity. The EBITDA improvement was achieved even as advertising spend, weekly unit sales and order volumes declined, the group said.
WA made progress in recovering sales and order counts as the trial progressed, outperforming the rest of Australia as it ended FY2026, with carry-out sales higher and delivery sales still recovering but ahead of the rest of the country.
The pilot sits within a broader ANZ shift away from blanket discounting toward targeted, margin-accretive promotions. Same-store sales across Australia and New Zealand fell 4.7% year-on-year, reflecting deliberate pricing resets and reduced reliance on low-margin promotional activity, whilst higher ticket values, food savings and cost discipline supported a healthier operating base.
New Zealand franchisee EBITDA increased 22.1% to the end of the third quarter of FY26, despite lower volumes.
Marketing innovation was also tested alongside the pricing changes. The relaunched Mix 'n' Match Box generated more than $4m in influenced sales by broadening the value proposition despite being an existing product, whilst the Pistachio Papi Lava Cake collaboration reinforced the brand's ability to engage customers beyond price alone.
Domino's has also tightened labour and overhead costs, reduced support headcount, optimised inventory and warehouse structures, and will close 29 underperforming stores across ANZ.
Merrill Pereyra was appointed ANZ CEO and Abhishek Jain NZ CEO during the period, with both focused on embedding a more disciplined operating model centred on franchisee success.
This follows the release of DPE Group's FY2026 financial statement, which reported a statutory loss after tax of $134.2m from continuing operations, driven by $255.7m in after-tax significant items.
