Domino's Pizza Malaysia to launch "Pay Same or Less" campaign

SHAH ALAM: Malaysians can soon expect a cheaper pizza, as Domino's Pizza Malaysia will be launching a new campaign called "Pay Same or Less" from March 16, which is two weeks earlier before the Goods & Services Tax (GST) implementation on April 1, 2015.
"Currently, we collect a 6% sales tax for the government. After April 1, we will continue to collect the 6% for the government, but this time we can claim input tax credit," Domino's Pizza Malaysia and Singapore general manager, Shamsul Amree Ab Rahman told reporters at a press conference here yesterday.
Domino's Pizza Malaysia plans to pass back a minimum of about RM2.4 million savings per year from a reduction of its prices coupled with improving its operating systems, including inventory system and training to reduce wastage.
Its senior manager, marketing Linda Hassan added that 92% of its product offering will see price reductions, which include all value meals and a-la-carte items, sides, desserts and beverages, set meals, other promotions and coupons, while prices for the remaining 8% will be maintained.
"It's either you pay for the same price or you pay less," she said, noting the group will still maintain its free delivery service, despite the GST implementation.
For the new tax regime preparation, Shamsul noted that the group has invested over RM800,000 to conduct GST training for its staff, to provide GST-compliant accounting software as well as adjusting its supply chain.
Moving forward, he expects the consumers to be cautious in their spending this year, however, he said the change in spending pattern may be temporary since consumers usually get used to new price levels.
Meanwhile, Shamsul said the group is targeting to achieve double-digit growth in revenue this year, driven by its bigger retail network, after hitting RM200 million sales in 2013.
"Overall, our sales were better about 16% for 2014," he said, but he declined to disclose the total sales for last year.
He added that the group intends to open 25 new outlets in the country, to add to its existing 128 outlets, by investing RM500,000 to RM700,000 on each outlet.
"We hope to grow our top line by opening more new outlets," he added.