The Reason Domino's Pizza Is So Cheap

While perhaps not the healthiest meal (two cheese slices from a large Domino's pizza contains 580 calories and 1,180 milligrams of sodium according to their cal-o-meter), we can all agree there is something special about ordering a big, greasy, cheesy, fast-food pizza, having a few beers, and inviting some friends over for a night in. According to Fast Food Menu Prices, the average price of a Domino's large cheese pizza is $9.99, with the chain frequently offering deep discounts and deals that bring the price down even lower. 

Jenny Fouracre, Domino's director of public relations, told the Los Angeles Times that the amount charged for a single pizza can vary based on where you are ordering from and what the franchise owners choose to set it at as they're free to decide their own prices. However, national discounts and combination deals tend to keep the costs relatively similar across state lines. With deals this good, we have to wonder how they keep the cost down and their pizza so cheap.

Cheap pizza can lead to low wages at Domino's

Workers appear to be some of the people shouldering the burden of the extremely low prices of Domino's pizza, with HuffPost reporting the pizza industry to be some of the biggest offenders when it comes to low wages. There was even a lawsuit filed by the New York attorney general, accusing Domino's of fraud and systematic wage theft by repeatedly shortening workers pay (via HuffPost). This lawsuit alleges that Domino's headquarters instructed franchise owners to purchase the software system PULSE for payroll, which led to them shorting workers on wages. Domino's headquarters allegedly knew about this issue, but deemed it to be a "low priority" problem.

Franchise owners are claiming to being hit as well, telling News.Com.Au that the reduction of prices around 2014 began cutting into profits and forcing shops to sell pizzas at or below cost. Many of the people who opened shops before the price decreases had to close up, citing the hard work and time they were putting into building their businesses was not making sense given the debt they were building up due to costs. They were told the price cuts were a temporary promotion, but it quickly became clear to them that the low prices and deep discounts were here to stay. A Domino's spokesperson told the reporter that since introducing a value deal in Australia, where the article was reported from, stores saw increased profits and sales.