The former owner of Mudgee Pizza Hut is among of group of franchisees who have launched a class action against the company over a price war with rival Dominos, which they claim lost profits and lead to business failures.
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David Tiggemann’s store is one of 288 represented in the action against parent company Yum! Restaurants Australia.
In 2013 Pizza Hut slashed the price of its pizzas as low as $4.95 to match Domino’s $8 premium range.
Mr Tiggemann said the majority of franchisees were against the strategy that cut prices by up to 50 per cent.
“We predicted that it would jeopardise any possibility to make a profit from the business in both the short and long term,” Mr Tiggemann said.
'I am skirting bankruptcy due to the closure of my stores and struggle to survive while I try to build a new career for myself so I can move on.'
“Since the implementation of the price strategy over 30 stores have closed (including my own) with many others struggling to make ends meet.”
Mr Tiggemann’s store closed in 2014, two years after opening.
“On a personal level I have been emotionally damaged by the experience which has strained my relationships with family and friends,” he said.
“I am skirting bankruptcy due to the closure of my stores and struggle to survive while I try to build a new career for myself so I can move on.
“I sincerely hope that Yum! Restaurants recognise the damage they are causing to the Pizza Hut brand and the lives of their franchisees and do everything they can to rectify the situation; however their actions to date lead me to think that this will not happen unless they are ordered to by the courts.”
Pizza Hut Australia general manager Graeme Houston said in a statement that the company was unable to make comment while the case was before the court.
“We are looking forward to finally resolving this matter in court and moving on so we can focus on our core role of helping our franchisees build their businesses,” he said.
The matter is expected to be heard in the Federal Court later this month.
