Latest news with #Barrenjoey
The Advertiser
31-07-2025
- Business
- The Advertiser
Mortgage rate relief prospects welcome, says Chalmers
Another interest rate cut will be "welcome relief" for mortgage holders, says Treasurer Jim Chalmers, as a top central banker prepares to speak in the wake of a promising inflation result. Reserve Bank of Australia deputy governor Andrew Hauser will give a speech at an economic forum hosted by investment bank Barrenjoey on Thursday. It comes less than 24 hours after the Australian Bureau of Statistics revealed the central bank's preferred measure of inflation, the trimmed mean, eased to an annualised 2.7 per cent in the June quarter. The outcome reflected the "remarkable progress" Australia has made in cutting inflation in the last three years, Dr Chalmers said. The result was slightly softer than economists had expected and was widely interpreted as being consistent with the RBA board lowering the cash rate to 3.6 per cent, from a current 3.85 per cent, at its next board meeting in August. "But it's never mission accomplished because the global environment is uncertain - we've got some persistent structural issues in our economy, growth in our economy is soft, and people are under pressure," Dr Chalmers told ABC television on Thursday. In a bid to address those structural issues in the economy, Dr Chalmers has convened a roundtable of experts, business and unions to discuss Australia's productivity woes. They will gather in late August. Building more homes sooner will be a central focus of the roundtable, the treasurer hopes. "That's the government's priority. The primary focus there, I think, at the roundtable will be around how we speed up approvals and get the zoning for housing right, because we desperately need more homes," he said. But fault lines have opened up between businesses and unions on artificial intelligence. Peak union body, the ACTU, has called for tougher regulations to ensure AI does not lead to job losses, while business groups have warned against regulation that could stifle the adoption of the technology. Independent MP Zali Steggall has called for the government to appoint a special envoy for AI and the future of work to drive adoption of the technology while addressing growing public distrust. "I am concerned it's going to be unions trying to put a lid on it," Ms Steggall told AAP. "Look, I am supportive of guardrails. It has to be done safely, but to suggest that you can put the genie back in the bottle is unrealistic." The former Winter Olympian on Thursday launched her economic plan to re-energise the economy while speeding the transition to net zero, by encouraging clean energy investment and reducing the cost of housing. The RBA stunned analysts by leaving rates on hold in July, with governor Michele Bullock telling an event last week that the board preferred a "measured and gradual" approach to easing interest rates. While less pivotal than inflation or jobs data, retail sales figures released by the ABS on Thursday will provide an update on the vitality of the Australian consumer. The recovery in household spending has been softer than the RBA had expected, the board said in minutes from its last meeting. But sales are expected to rebound to the highest level since the beginning of 2024, following a run of softer months. The retail print is the last the bureau will produce before it switches over to a more comprehensive measure of consumption, the monthly household spending indicator. Opposition frontbencher Michaelia Cash said while it was a good thing inflation was falling, Australians were still doing it tough because prices had grown faster and for longer compared to the rest of the world. "So Jim, take all the credit you like. But the bad news is you're the architect of the cost of living crisis that Australians live under your government," she told Nine television on Thursday. Another interest rate cut will be "welcome relief" for mortgage holders, says Treasurer Jim Chalmers, as a top central banker prepares to speak in the wake of a promising inflation result. Reserve Bank of Australia deputy governor Andrew Hauser will give a speech at an economic forum hosted by investment bank Barrenjoey on Thursday. It comes less than 24 hours after the Australian Bureau of Statistics revealed the central bank's preferred measure of inflation, the trimmed mean, eased to an annualised 2.7 per cent in the June quarter. The outcome reflected the "remarkable progress" Australia has made in cutting inflation in the last three years, Dr Chalmers said. The result was slightly softer than economists had expected and was widely interpreted as being consistent with the RBA board lowering the cash rate to 3.6 per cent, from a current 3.85 per cent, at its next board meeting in August. "But it's never mission accomplished because the global environment is uncertain - we've got some persistent structural issues in our economy, growth in our economy is soft, and people are under pressure," Dr Chalmers told ABC television on Thursday. In a bid to address those structural issues in the economy, Dr Chalmers has convened a roundtable of experts, business and unions to discuss Australia's productivity woes. They will gather in late August. Building more homes sooner will be a central focus of the roundtable, the treasurer hopes. "That's the government's priority. The primary focus there, I think, at the roundtable will be around how we speed up approvals and get the zoning for housing right, because we desperately need more homes," he said. But fault lines have opened up between businesses and unions on artificial intelligence. Peak union body, the ACTU, has called for tougher regulations to ensure AI does not lead to job losses, while business groups have warned against regulation that could stifle the adoption of the technology. Independent MP Zali Steggall has called for the government to appoint a special envoy for AI and the future of work to drive adoption of the technology while addressing growing public distrust. "I am concerned it's going to be unions trying to put a lid on it," Ms Steggall told AAP. "Look, I am supportive of guardrails. It has to be done safely, but to suggest that you can put the genie back in the bottle is unrealistic." The former Winter Olympian on Thursday launched her economic plan to re-energise the economy while speeding the transition to net zero, by encouraging clean energy investment and reducing the cost of housing. The RBA stunned analysts by leaving rates on hold in July, with governor Michele Bullock telling an event last week that the board preferred a "measured and gradual" approach to easing interest rates. While less pivotal than inflation or jobs data, retail sales figures released by the ABS on Thursday will provide an update on the vitality of the Australian consumer. The recovery in household spending has been softer than the RBA had expected, the board said in minutes from its last meeting. But sales are expected to rebound to the highest level since the beginning of 2024, following a run of softer months. The retail print is the last the bureau will produce before it switches over to a more comprehensive measure of consumption, the monthly household spending indicator. Opposition frontbencher Michaelia Cash said while it was a good thing inflation was falling, Australians were still doing it tough because prices had grown faster and for longer compared to the rest of the world. "So Jim, take all the credit you like. But the bad news is you're the architect of the cost of living crisis that Australians live under your government," she told Nine television on Thursday. Another interest rate cut will be "welcome relief" for mortgage holders, says Treasurer Jim Chalmers, as a top central banker prepares to speak in the wake of a promising inflation result. Reserve Bank of Australia deputy governor Andrew Hauser will give a speech at an economic forum hosted by investment bank Barrenjoey on Thursday. It comes less than 24 hours after the Australian Bureau of Statistics revealed the central bank's preferred measure of inflation, the trimmed mean, eased to an annualised 2.7 per cent in the June quarter. The outcome reflected the "remarkable progress" Australia has made in cutting inflation in the last three years, Dr Chalmers said. The result was slightly softer than economists had expected and was widely interpreted as being consistent with the RBA board lowering the cash rate to 3.6 per cent, from a current 3.85 per cent, at its next board meeting in August. "But it's never mission accomplished because the global environment is uncertain - we've got some persistent structural issues in our economy, growth in our economy is soft, and people are under pressure," Dr Chalmers told ABC television on Thursday. In a bid to address those structural issues in the economy, Dr Chalmers has convened a roundtable of experts, business and unions to discuss Australia's productivity woes. They will gather in late August. Building more homes sooner will be a central focus of the roundtable, the treasurer hopes. "That's the government's priority. The primary focus there, I think, at the roundtable will be around how we speed up approvals and get the zoning for housing right, because we desperately need more homes," he said. But fault lines have opened up between businesses and unions on artificial intelligence. Peak union body, the ACTU, has called for tougher regulations to ensure AI does not lead to job losses, while business groups have warned against regulation that could stifle the adoption of the technology. Independent MP Zali Steggall has called for the government to appoint a special envoy for AI and the future of work to drive adoption of the technology while addressing growing public distrust. "I am concerned it's going to be unions trying to put a lid on it," Ms Steggall told AAP. "Look, I am supportive of guardrails. It has to be done safely, but to suggest that you can put the genie back in the bottle is unrealistic." The former Winter Olympian on Thursday launched her economic plan to re-energise the economy while speeding the transition to net zero, by encouraging clean energy investment and reducing the cost of housing. The RBA stunned analysts by leaving rates on hold in July, with governor Michele Bullock telling an event last week that the board preferred a "measured and gradual" approach to easing interest rates. While less pivotal than inflation or jobs data, retail sales figures released by the ABS on Thursday will provide an update on the vitality of the Australian consumer. The recovery in household spending has been softer than the RBA had expected, the board said in minutes from its last meeting. But sales are expected to rebound to the highest level since the beginning of 2024, following a run of softer months. The retail print is the last the bureau will produce before it switches over to a more comprehensive measure of consumption, the monthly household spending indicator. Opposition frontbencher Michaelia Cash said while it was a good thing inflation was falling, Australians were still doing it tough because prices had grown faster and for longer compared to the rest of the world. "So Jim, take all the credit you like. But the bad news is you're the architect of the cost of living crisis that Australians live under your government," she told Nine television on Thursday. Another interest rate cut will be "welcome relief" for mortgage holders, says Treasurer Jim Chalmers, as a top central banker prepares to speak in the wake of a promising inflation result. Reserve Bank of Australia deputy governor Andrew Hauser will give a speech at an economic forum hosted by investment bank Barrenjoey on Thursday. It comes less than 24 hours after the Australian Bureau of Statistics revealed the central bank's preferred measure of inflation, the trimmed mean, eased to an annualised 2.7 per cent in the June quarter. The outcome reflected the "remarkable progress" Australia has made in cutting inflation in the last three years, Dr Chalmers said. The result was slightly softer than economists had expected and was widely interpreted as being consistent with the RBA board lowering the cash rate to 3.6 per cent, from a current 3.85 per cent, at its next board meeting in August. "But it's never mission accomplished because the global environment is uncertain - we've got some persistent structural issues in our economy, growth in our economy is soft, and people are under pressure," Dr Chalmers told ABC television on Thursday. In a bid to address those structural issues in the economy, Dr Chalmers has convened a roundtable of experts, business and unions to discuss Australia's productivity woes. They will gather in late August. Building more homes sooner will be a central focus of the roundtable, the treasurer hopes. "That's the government's priority. The primary focus there, I think, at the roundtable will be around how we speed up approvals and get the zoning for housing right, because we desperately need more homes," he said. But fault lines have opened up between businesses and unions on artificial intelligence. Peak union body, the ACTU, has called for tougher regulations to ensure AI does not lead to job losses, while business groups have warned against regulation that could stifle the adoption of the technology. Independent MP Zali Steggall has called for the government to appoint a special envoy for AI and the future of work to drive adoption of the technology while addressing growing public distrust. "I am concerned it's going to be unions trying to put a lid on it," Ms Steggall told AAP. "Look, I am supportive of guardrails. It has to be done safely, but to suggest that you can put the genie back in the bottle is unrealistic." The former Winter Olympian on Thursday launched her economic plan to re-energise the economy while speeding the transition to net zero, by encouraging clean energy investment and reducing the cost of housing. The RBA stunned analysts by leaving rates on hold in July, with governor Michele Bullock telling an event last week that the board preferred a "measured and gradual" approach to easing interest rates. While less pivotal than inflation or jobs data, retail sales figures released by the ABS on Thursday will provide an update on the vitality of the Australian consumer. The recovery in household spending has been softer than the RBA had expected, the board said in minutes from its last meeting. But sales are expected to rebound to the highest level since the beginning of 2024, following a run of softer months. The retail print is the last the bureau will produce before it switches over to a more comprehensive measure of consumption, the monthly household spending indicator. Opposition frontbencher Michaelia Cash said while it was a good thing inflation was falling, Australians were still doing it tough because prices had grown faster and for longer compared to the rest of the world. "So Jim, take all the credit you like. But the bad news is you're the architect of the cost of living crisis that Australians live under your government," she told Nine television on Thursday.
The Advertiser
30-07-2025
- Business
- The Advertiser
All eyes on top bank official as rate-cut hopes inflate
A fireside chat starring a top Reserve Bank of Australia official will be closely watched as mortgage holders look for more signs confirming another interest rate cut. RBA deputy governor Andrew Hauser will speak at an economic forum hosted by investment bank Barrenjoey on Thursday. The event comes less than 24 hours after the Australian Bureau of Statistics revealed the Reserve Bank's preferred measure of inflation, the trimmed mean, eased to 2.7 per cent in the June quarter. The result was slightly softer than economists had expected and was widely interpreted as consistent with the RBA board lowering the cash rate to 3.6 per cent at its next meeting in August. Money markets are fully pricing in a 25 basis point cut and have upped the odds of a back-to-back cut in September to about 40 per cent, said Chief CommSec economist Ryan Felsman. But Mr Hauser could "offer some push-back about the need for rapid easing" at the Barrenjoey event in Sydney. The RBA stunned analysts by leaving rates on hold in July, with governor Michele Bullock telling an event last week that the board preferred a "measured and gradual" approach to easing interest rates. While less pivotal than inflation or jobs data, retail sales figures released by the ABS on Thursday will provide an update on the vitality of the Australian consumer. The recovery in household spending has been softer than the RBA had expected, the board said in minutes from its last meeting. But sales are expected to rebound to the highest level since the beginning of 2024, following a run of softer months. The retail print is the last the bureau will produce before it switches over to a more comprehensive measure of consumption, the monthly household spending indicator. As the government prepares for an economic roundtable aimed at fixing Australia's productivity woes, fault lines have opened up between businesses and unions on artificial intelligence. Peak union body the ACTU has called for tougher regulations to ensure AI does not lead to job losses, while business groups have warned against regulation that could stifle adoption of the technology. Independent MP Zali Steggall has called for the government to appoint a special envoy for AI and the future of work to drive adoption of the technology while addressing growing public distrust. "I am concerned it's going to be unions trying to put a lid on it," Ms Steggall told AAP. "Look, I am supportive of guardrails. It has to be done safely, but to suggest that you can put the genie back in the bottle is unrealistic." The former Winter Olympian on Thursday launched her economic plan to re-energise the economy while speeding the transition to net zero, by encouraging clean energy investment and reducing the cost of housing. A fireside chat starring a top Reserve Bank of Australia official will be closely watched as mortgage holders look for more signs confirming another interest rate cut. RBA deputy governor Andrew Hauser will speak at an economic forum hosted by investment bank Barrenjoey on Thursday. The event comes less than 24 hours after the Australian Bureau of Statistics revealed the Reserve Bank's preferred measure of inflation, the trimmed mean, eased to 2.7 per cent in the June quarter. The result was slightly softer than economists had expected and was widely interpreted as consistent with the RBA board lowering the cash rate to 3.6 per cent at its next meeting in August. Money markets are fully pricing in a 25 basis point cut and have upped the odds of a back-to-back cut in September to about 40 per cent, said Chief CommSec economist Ryan Felsman. But Mr Hauser could "offer some push-back about the need for rapid easing" at the Barrenjoey event in Sydney. The RBA stunned analysts by leaving rates on hold in July, with governor Michele Bullock telling an event last week that the board preferred a "measured and gradual" approach to easing interest rates. While less pivotal than inflation or jobs data, retail sales figures released by the ABS on Thursday will provide an update on the vitality of the Australian consumer. The recovery in household spending has been softer than the RBA had expected, the board said in minutes from its last meeting. But sales are expected to rebound to the highest level since the beginning of 2024, following a run of softer months. The retail print is the last the bureau will produce before it switches over to a more comprehensive measure of consumption, the monthly household spending indicator. As the government prepares for an economic roundtable aimed at fixing Australia's productivity woes, fault lines have opened up between businesses and unions on artificial intelligence. Peak union body the ACTU has called for tougher regulations to ensure AI does not lead to job losses, while business groups have warned against regulation that could stifle adoption of the technology. Independent MP Zali Steggall has called for the government to appoint a special envoy for AI and the future of work to drive adoption of the technology while addressing growing public distrust. "I am concerned it's going to be unions trying to put a lid on it," Ms Steggall told AAP. "Look, I am supportive of guardrails. It has to be done safely, but to suggest that you can put the genie back in the bottle is unrealistic." The former Winter Olympian on Thursday launched her economic plan to re-energise the economy while speeding the transition to net zero, by encouraging clean energy investment and reducing the cost of housing. A fireside chat starring a top Reserve Bank of Australia official will be closely watched as mortgage holders look for more signs confirming another interest rate cut. RBA deputy governor Andrew Hauser will speak at an economic forum hosted by investment bank Barrenjoey on Thursday. The event comes less than 24 hours after the Australian Bureau of Statistics revealed the Reserve Bank's preferred measure of inflation, the trimmed mean, eased to 2.7 per cent in the June quarter. The result was slightly softer than economists had expected and was widely interpreted as consistent with the RBA board lowering the cash rate to 3.6 per cent at its next meeting in August. Money markets are fully pricing in a 25 basis point cut and have upped the odds of a back-to-back cut in September to about 40 per cent, said Chief CommSec economist Ryan Felsman. But Mr Hauser could "offer some push-back about the need for rapid easing" at the Barrenjoey event in Sydney. The RBA stunned analysts by leaving rates on hold in July, with governor Michele Bullock telling an event last week that the board preferred a "measured and gradual" approach to easing interest rates. While less pivotal than inflation or jobs data, retail sales figures released by the ABS on Thursday will provide an update on the vitality of the Australian consumer. The recovery in household spending has been softer than the RBA had expected, the board said in minutes from its last meeting. But sales are expected to rebound to the highest level since the beginning of 2024, following a run of softer months. The retail print is the last the bureau will produce before it switches over to a more comprehensive measure of consumption, the monthly household spending indicator. As the government prepares for an economic roundtable aimed at fixing Australia's productivity woes, fault lines have opened up between businesses and unions on artificial intelligence. Peak union body the ACTU has called for tougher regulations to ensure AI does not lead to job losses, while business groups have warned against regulation that could stifle adoption of the technology. Independent MP Zali Steggall has called for the government to appoint a special envoy for AI and the future of work to drive adoption of the technology while addressing growing public distrust. "I am concerned it's going to be unions trying to put a lid on it," Ms Steggall told AAP. "Look, I am supportive of guardrails. It has to be done safely, but to suggest that you can put the genie back in the bottle is unrealistic." The former Winter Olympian on Thursday launched her economic plan to re-energise the economy while speeding the transition to net zero, by encouraging clean energy investment and reducing the cost of housing. A fireside chat starring a top Reserve Bank of Australia official will be closely watched as mortgage holders look for more signs confirming another interest rate cut. RBA deputy governor Andrew Hauser will speak at an economic forum hosted by investment bank Barrenjoey on Thursday. The event comes less than 24 hours after the Australian Bureau of Statistics revealed the Reserve Bank's preferred measure of inflation, the trimmed mean, eased to 2.7 per cent in the June quarter. The result was slightly softer than economists had expected and was widely interpreted as consistent with the RBA board lowering the cash rate to 3.6 per cent at its next meeting in August. Money markets are fully pricing in a 25 basis point cut and have upped the odds of a back-to-back cut in September to about 40 per cent, said Chief CommSec economist Ryan Felsman. But Mr Hauser could "offer some push-back about the need for rapid easing" at the Barrenjoey event in Sydney. The RBA stunned analysts by leaving rates on hold in July, with governor Michele Bullock telling an event last week that the board preferred a "measured and gradual" approach to easing interest rates. While less pivotal than inflation or jobs data, retail sales figures released by the ABS on Thursday will provide an update on the vitality of the Australian consumer. The recovery in household spending has been softer than the RBA had expected, the board said in minutes from its last meeting. But sales are expected to rebound to the highest level since the beginning of 2024, following a run of softer months. The retail print is the last the bureau will produce before it switches over to a more comprehensive measure of consumption, the monthly household spending indicator. As the government prepares for an economic roundtable aimed at fixing Australia's productivity woes, fault lines have opened up between businesses and unions on artificial intelligence. Peak union body the ACTU has called for tougher regulations to ensure AI does not lead to job losses, while business groups have warned against regulation that could stifle adoption of the technology. Independent MP Zali Steggall has called for the government to appoint a special envoy for AI and the future of work to drive adoption of the technology while addressing growing public distrust. "I am concerned it's going to be unions trying to put a lid on it," Ms Steggall told AAP. "Look, I am supportive of guardrails. It has to be done safely, but to suggest that you can put the genie back in the bottle is unrealistic." The former Winter Olympian on Thursday launched her economic plan to re-energise the economy while speeding the transition to net zero, by encouraging clean energy investment and reducing the cost of housing.
Yahoo
30-07-2025
- Business
- Yahoo
All eyes on top bank official as rate-cut hopes inflate
A fireside chat starring a top Reserve Bank of Australia official will be closely watched as mortgage holders look for more signs confirming another interest rate cut. RBA deputy governor Andrew Hauser will speak at an economic forum hosted by investment bank Barrenjoey on Thursday. The event comes less than 24 hours after the Australian Bureau of Statistics revealed the Reserve Bank's preferred measure of inflation, the trimmed mean, eased to 2.7 per cent in the June quarter. The result was slightly softer than economists had expected and was widely interpreted as consistent with the RBA board lowering the cash rate to 3.6 per cent at its next meeting in August. Money markets are fully pricing in a 25 basis point cut and have upped the odds of a back-to-back cut in September to about 40 per cent, said Chief CommSec economist Ryan Felsman. But Mr Hauser could "offer some push-back about the need for rapid easing" at the Barrenjoey event in Sydney. The RBA stunned analysts by leaving rates on hold in July, with governor Michele Bullock telling an event last week that the board preferred a "measured and gradual" approach to easing interest rates. While less pivotal than inflation or jobs data, retail sales figures released by the ABS on Thursday will provide an update on the vitality of the Australian consumer. The recovery in household spending has been softer than the RBA had expected, the board said in minutes from its last meeting. But sales are expected to rebound to the highest level since the beginning of 2024, following a run of softer months. The retail print is the last the bureau will produce before it switches over to a more comprehensive measure of consumption, the monthly household spending indicator. As the government prepares for an economic roundtable aimed at fixing Australia's productivity woes, fault lines have opened up between businesses and unions on artificial intelligence. Peak union body the ACTU has called for tougher regulations to ensure AI does not lead to job losses, while business groups have warned against regulation that could stifle adoption of the technology. Independent MP Zali Steggall has called for the government to appoint a special envoy for AI and the future of work to drive adoption of the technology while addressing growing public distrust. "I am concerned it's going to be unions trying to put a lid on it," Ms Steggall told AAP. "Look, I am supportive of guardrails. It has to be done safely, but to suggest that you can put the genie back in the bottle is unrealistic." The former Winter Olympian on Thursday launched her economic plan to re-energise the economy while speeding the transition to net zero, by encouraging clean energy investment and reducing the cost of housing.
Perth Now
30-07-2025
- Business
- Perth Now
All eyes on top bank official as rate-cut hopes inflate
A fireside chat starring a top Reserve Bank of Australia official will be closely watched as mortgage holders look for more signs confirming another interest rate cut. RBA deputy governor Andrew Hauser will speak at an economic forum hosted by investment bank Barrenjoey on Thursday. The event comes less than 24 hours after the Australian Bureau of Statistics revealed the Reserve Bank's preferred measure of inflation, the trimmed mean, eased to 2.7 per cent in the June quarter. The result was slightly softer than economists had expected and was widely interpreted as consistent with the RBA board lowering the cash rate to 3.6 per cent at its next meeting in August. Money markets are fully pricing in a 25 basis point cut and have upped the odds of a back-to-back cut in September to about 40 per cent, said Chief CommSec economist Ryan Felsman. But Mr Hauser could "offer some push-back about the need for rapid easing" at the Barrenjoey event in Sydney. The RBA stunned analysts by leaving rates on hold in July, with governor Michele Bullock telling an event last week that the board preferred a "measured and gradual" approach to easing interest rates. While less pivotal than inflation or jobs data, retail sales figures released by the ABS on Thursday will provide an update on the vitality of the Australian consumer. The recovery in household spending has been softer than the RBA had expected, the board said in minutes from its last meeting. But sales are expected to rebound to the highest level since the beginning of 2024, following a run of softer months. The retail print is the last the bureau will produce before it switches over to a more comprehensive measure of consumption, the monthly household spending indicator. As the government prepares for an economic roundtable aimed at fixing Australia's productivity woes, fault lines have opened up between businesses and unions on artificial intelligence. Peak union body the ACTU has called for tougher regulations to ensure AI does not lead to job losses, while business groups have warned against regulation that could stifle adoption of the technology. Independent MP Zali Steggall has called for the government to appoint a special envoy for AI and the future of work to drive adoption of the technology while addressing growing public distrust. "I am concerned it's going to be unions trying to put a lid on it," Ms Steggall told AAP. "Look, I am supportive of guardrails. It has to be done safely, but to suggest that you can put the genie back in the bottle is unrealistic." The former Winter Olympian on Thursday launched her economic plan to re-energise the economy while speeding the transition to net zero, by encouraging clean energy investment and reducing the cost of housing.
Sydney Morning Herald
27-07-2025
- Business
- Sydney Morning Herald
Fast-food fixer: 83-year-old Hungry Jack wants a five-minute plan for Domino's Pizza
But the conditions for success during that era were some of the best the pizza chain could have wished for. COVID-19 lockdowns keeping everyone at home created huge – but temporary – demand for food delivery. Fast-food customers and investors alike were grabbing a slice of Domino's, which reached a share price record high of nearly $160 in September 2021. Since then, it hasn't capitalised on the flash-in-the-pan success. Pizza sales have stalled. Profit predictions were downgraded three times in a year. 'It has been this huge growth story for a long time. The last two or three years hasn't [delivered] any growth,' said Tom Kierath, investment banking firm Barrenjoey's head of consumer research. Investors fled the stock after van Dyck's resignation was announced, sending the share price to little over a tenth of that peak to $16.96. Cowin was aware of the need to reassure rattled shareholders, with van Dyck's departure coming so soon after Meij's. The billionaire businessman has a personal stake – 25.7 per cent – in fixing this. 'The business has got to do better. We're custodians of other people's money,' Cowin said. 'But to make this business successful, we have to have growth, and we have to do it now rather than on a long-term basis.' What's gone wrong at Domino's? Domino's problems didn't appear overnight. Many competitive edges that once made it a market leader have eroded over years. Meij sought to make Domino's website and app best-in-class, spending nearly $23 million in half a year alone on digital platforms. The investment doesn't appear to have generated high returns. 'You had the Peloton bubble, you had the Lululemon bubble with everyone buying casual wear, and we had this Domino's bubble because they were digitally well advanced beyond anyone else,' said food industry consultant and Titanium Food director Suzee Brain. 'That gave them inflated confidence that they were the new flavour of the month. So they started some really massive expansion off the back of a false economy.' The rapid store roll-out across Europe and Asia, once a major sales driver, was reversing. In Australia, Domino's couldn't keep the sales spurt they enjoyed during the pandemic. 'They weren't able to keep a lot of those customers, because there's another problem: the product is not all that great,' said Brain. 'They've never marketed it because they make great pizza … But now, it actually needs to be about the pizza.' Domino's is facing a more competitive and diverse fast-food landscape in which players such as Guzman y Gomez and El Jannah are attracting younger customers and US chains Five Guys and Wingstop are keen for their slice of the market. As Australia's dominant pizza chain, industry watchers believe Domino's must advocate more effectively for the entire pizza category. Loading 'As part of your 'what we do for the kids for a family eating Sunday evening dinner' [considerations], does Domino's become part of the conversation more than it currently is? That's the opportunity,' said one industry analyst who declined to be named. The business must become more profitable, Cowin has told investors. Ideally, this would happen through a sales uplift, but as there's no guarantee of that, costs need to be pulled out of the business. As delivery aggregators Uber Eats and DoorDash eat Domino's lunch, IT spending has been an early target. 'Our technology is not any better than Uber's and the other people that we have to deal with,' said Cowin. 'If you don't have a competitive advantage, let's stop trying to recreate the wheel.' Franchisee profitability is a key priority for Domino's, with weekly store sales ranging from $30,000 to $100,000, Cowin revealed. But margins were eroded by the spurt of high inflation across ingredients such as cheese as well as wages, fuel and electricity. Meij tried to pass this on by imposing a 6 per cent delivery fee, which backfired with customers who punished the move by buying fewer pizzas. 'Relative price point becomes very important,' said Ten Cap co-founder and lead portfolio manager Jun Bei Liu. 'This price increase for the fast-food category was just so wrong.' Several fund managers, stock pickers and analysts believe at least some dead weight needs to be shed. Domino's should sell France and exit Japan, said outspoken stockbroker Angus Aitken. Barrenjoey's Keirath agrees. 'If they get Taiwan, right, is it going to move the dial? No, it's becoming a distraction. The same in Malaysia,' he said. 'What you do by staying in those markets is you dilute the core markets.' Who's up for the job? Recruitment is under way for Van Dyck's replacement. But they will have to be someone who will have to play by the rules laid out by Cowin, who has made it clear he wants to see rapid change. Loading 'If you have a strong chair in place [who has] already said to the market, 'well, that guy is not there because he's not delivering on costs', then the next person has to subscribe to that view,' said Ten Cap's Liu. 'When you have to focus on costs, you got to be a tough person. You can't be a nice guy.' There are plenty who think Domino's is still a good deal, such as Morningstar equity analyst Johannes Faul, who said the leadership instability has injected uncertainty in the short term but described the pizza chain as 'a robust brand of the future'. 'We do think Domino's still has growth ahead of it. Quite significantly so,' Faul said. Aitken said there was still a 'huge mass market' for Domino's products. 'The demise of Domino's as a product is not apparent to us,' he said. 'We think backing the No.1 [quick-service restaurant] money-maker over 50 years, when he has no friends, is a great time to back Jack Cowin and Domino's.' Turning things around could take three years. 'Jack might be in his 80s but he is hands-on and can fix this with the right team.'
