Domino's Pizza launch caught up in legal dispute
A Business Day report says the planned launch in South Africa of Domino's Pizza, the world's largest pizza delivery chain, is under dispute after the US firm was accused of reneging on its agreements with a local consortium.
In April, Taste Holdings announced it had acquired the master franchise licence for Domino's. But now a local consortium has served court papers on Domino's and Taste. The report says Taste issued an announcement warning of the dispute with 'certain local aggrieved parties', which was lodged last Monday. 'None of the aforementioned parties have, or had, a written agreement with Domino's Pizza International.' Taste founder and CEO Carlo Gonzaga reportedly said that the legal challenge would be overcome. 'We are not worried about this,' he is quoted in the report as saying. However, the report says in the 353-page court document served on Taste last Monday, there is extensive evidence of talks spanning several months, payments for the master franchise licence, and other written agreements. Included in the dossier is an e-mail from Domino's director Fred Lund, stating: 'We look forward to working with you and the team to launch Domino's Pizza in SA.' This comes against the background of Pizza Hut, the largest pizza chain in the world, being expected to reopen in South Africa in June. Full Business Day report (subscription needed)