Australia’s major pizza chains are presently engaged in a war of attrition, with Domino’s and Pizza Hut fighting to the death over who can offer customers the cheapest fix of carbs and pineapple chunks.
In recent times, the traditional ‘Cheap Tuesday’ has stretched to cover all other days of the week, with both chains offering vastly reduced prices on certain pizzas, in a bid to compete with each other.
Things at Pizza Hut have taken a particularly unfortunate turn, with news that last week, franchise owners took their parent company Yum! to court in attempt to block even more drastic price-cutting strategies.
In a bid to stay competitive, Yum! proposed a cap on pricing at Pizza Hut stores, and also a reduction in the number of menu items available, aiming to address the restaurant’s “downward trend in financial performance” and loss of customers.
News Limited report that a group of 80 franchise owners applied for an injunction against the strategy, arguing that it would hugely eat into their ability to make a living selling pizza, and ultimately destroy their businesses.
Yum! argued that their price-cutting strategy is a “good faith” attempt to help the restaurant, and that similar strategies have worked in the United States and Europe. The Supreme Court agreed, and blocked the injunction against them.
On the one hand, this means that you can probably expect to pay even less for your greasy pepperoni fix in the coming months. On the other, franchise owners may find themselves struggling to stay afloat.
World’s saddest pizza party, anyone?
Image via Dominos Australia