Domino’s Australia turnaround faces new pressure as 400 stores fall behind on tax payments

Domino's Pizza Enterprises' turnaround strategy in Australia is facing renewed pressure as approximately 400 of its 600 franchisee-operated restaurants reportedly have operators who are behind on tax payments, according to a Financial Review report.

Mounting financial pressures and declining sales have left a significant portion of the franchise network struggling to meet its obligations, raising concerns about the financial health of individual operators and the company's broader recovery plans, according to a letter sent to franchisees by Australian Association of Franchisees CEO Mike Sullivan.

The financial strain comes as Domino's works to recover from a prolonged sales slump and a strategic shift away from heavy discounting toward a simpler, everyday-value approach. The change has reportedly created friction with franchisees, who have argued that declining sales and ongoing operating costs are making it increasingly difficult to maintain profitability.

Domino's has introduced a financial assistance program in response, providing franchisees with $15,600 per restaurant, funded through the company's advertising fund, according to a Franchise Executives report. The support is intended to help operators cover staffing and operational expenses, although the decision to use franchisee-funded advertising contributions has reportedly generated additional frustration among operators. The assistance will be distributed in two payments, with overdue invoices deducted from individual franchisees' allocations.