Domino's CEO pleads for menu-labeling flexibility

The FDA's law requiring restaurant chains with 20 or more locations to provide detailed nutritional information on menus could take effect as early as 2012, but some restaurant operators are not on board with the requirements. The National Restaurant Association filed comments in July asking for more flexibility, but the latest pleas came from Domino's Pizza CEO J. Patrick Doyle in a letter published on Thehill.com.

Although Doyle said he agrees that restaurants should give consumers nutritional information, he wants the government to be flexible with the law that he calls "A one-size-fits-all approach that will be both expensive to implement and ineffective." Only one of the 27 comments sparked by the letter thus far disagreed with Doyle. The other 26 came from Domino's franchisees, who, like Doyle, are concerned with the cost and logistics with some of the government's requirements.

Most customers don't see menus

The proposed regulations would require franchises to provide calorie information on in-store menu boards, a mandate which would cost each store thousands of dollars every year, starting at $1,600 and going up to $4,700 per year, according to Doyle.

"As a delivery-oriented business, 90 percent of orders are placed by phone and online. As a result, the vast majority of our customers never even step foot in a store, much less look at the menu board," he said.

Doyle also said that there has been no change in customer ordering behavior in New York and other municipalities, where stores have already been forced to menu label.

"Unfortunately, the FDA's regulations are indifferent to these facts, and could result in millions of dollars of annual expenditures that a fraction of consumers actually see," he said

What about customization?

Doyle pointed out in his letter that the FDA unsatisfactorily addresses the challenges posed by customizable or "variable menu items" like pizza. For example, there are more than 34 million ways to order a Domino's pizza, according to the company.

"Under the proposed rules, we would have to label entire pizzas, and provide a calorie range that could be as wide as 2,000 calories," he said. "How is that helpful?"

Unfair to small franchisees

While Domino's is a global brand, Doyle said the reality is that it's a network of small, family-owned businesses. The average Domino's franchisee owns four stores, and half of the U.S. operators only own one store.

"Yet because they are affiliated with a 'chain,' they have to bear the cost of the regulations whereas their independent in-town rival – also a single store owner – would not," Doyle said. "When you factor in all of the restaurants that will not have to comply with the legislation, you soon discover that more than 70 percent of all restaurants in America will not have to share this cost burden."

Go online

Providing nutritional info online and via in-store brochures are not only more cost-effective solutions, it also makes more sense for consumers, according to Doyle. Domino's website has an application called the Cal-O-Meter that displays specific calories and other nutrition information for all 34 million possible pizza combinations.

"It is absurd to impose rules that will increase costs to business in a manner that will never be seen by 90 percent of our customers, and will be so confusing as to be ignored by the very few who ever see it," Doyle said. "We strongly support the spirit of what the FDA is trying to provide to consumers. The FDA should let us continue to give customers relevant nutritional information where they actually order, in an efficient and fair way, so we can get back to growing our businesses.

Do you agree with Doyle? Why or why not? Leave your comment below.

For more info on health and nutrition, click here.

Related Content

User Comments – Give us your opinion!
  • lynn liddle
    84290615
    Lynn from Domino's here. This is a problem common to many pizza peers. Pizza is a food that's hard to label. We need flexibility in the interpretation of this law, or it's going to be a substantial expense for any company with more than 20 stores. Write to your congresspeople and urge them to contact the FDA for flexibility in this law. We don't have much time left, so do it today!
  • Kenneth Schelper
    84211714
    We are a restaurant group with 21 locations. We face the same issues that Domino' does with regard to customization or variable menu items regarding not only our pizzas, but also with our sandwiches as well. The difference is aren't able to spread the significant cost of administering this over as many units. We were among the first restaurants in the country to provide our customers with an interactive nutritional calculator for all of our menu items on our website. The mandate to provide nutritional information in a written vs. electronic format is costly, unnecessary in these "connected" times - not to mention very "ungreen".
  • Laurie Wilks
    84113596
    I agree with Patrick Doyle 100%; we have way to much government involved where it should'nt be & costing our small business owners way to much money. I will support Patrick Doyle in this.
  • Denise Yohn
    83905201
    agree -- definitely.

    lawmakers shouldn’t be determining what nutritional information is important enough to warrant being called out on a menu.

    here are more thoughts on the topic: http://deniseleeyohn.com/bites/2010/05/27/the-problem-with-menu-labeling/

    -- denise lee yohn
  • Kenneth Schelper
    83873228
    Denise - good article. There are many problems with this law. The market place works! Many restaurant groups such as ours were providing this information in ways that made sense before this law started being discussed. Why? Because it was important to some of our customers - a reason for them to dine with us rather than someone else. For a more complete take from me, see the interview I did with Ed Morrisey or Hot Air.
    http://hotair.com/archives/2010/04/01/exclusive-the-new-federal-menu-mandate-meets-the-real-world/

  • Denise Yohn
    83869054
    i enjoyed your article and video, kenneth -- a good dose of reality! -- denise lee yohn
  • Kim Blum
    83846517
    Great article and the frustration of restaurant owners to meet FDA regulations is understandable.

    For assistance in following regulations and providing nutrition information, contact KB Nutrition Consulting at 972-987-0050 or visit www.kb-nutrition.com. We can make this an easy process!
Products & Services

Solutions

http://global.networldalliance.com/new/images/products/4551.png

4551/Solutions

Restaurant Digital Signage Advertising Network

http://global.networldalliance.com/new/images/products/6691.png

6691/Restaurant-Digital-Signage-Advertising-Network

See the latest in restaurant POS

http://global.networldalliance.com/new/images/products/1926.png

1926/See-the-latest-in-restaurant-POS

Javarama coffee

http://global.networldalliance.com/new/images/products/6961.png

6961/Javarama-coffee

Put your menu in your customers' pocket

http://global.networldalliance.com/new/images/products/1293.png

1293/Put-your-menu-in-your-customers-pocket

Quad Core Menu Board Media Player - $199

http://global.networldalliance.com/new/images/products/6679.png

6679/Quad-Core-Menu-Board-Media-Player-199

DriverAdvisor Fleet Monitoring

http://global.networldalliance.com/new/images/products/DriverAdvisor_iix.gif

1425/DriverAdvisor-Fleet-Monitoring

Group Purchasing Services

http://global.networldalliance.com/new/images/products/6403.png

6403/Group-Purchasing-Services

POS health test: do a quick check

http://global.networldalliance.com/new/images/products/1288.png

1288/POS-health-test-do-a-quick-check

Meatballs

http://global.networldalliance.com/new/images/products/6789.png

6789/Meatballs

Digital Menu Boards and ROI
Fast Casual Executive Summit
Request Information From Suppliers
Save time looking for suppliers. Complete this form to submit a Request for Information to our entire network of partners.