What the sudden sale of two humble Domino's Pizza restaurants tell us about Australia's cost-of-living crisis
- Domino's franchises sold in mortgage-stress area
- Two previous owners both went into liquidation
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Two struggling Domino's takeaway pizza outlets have been sold in an area of Sydney suffering from higher levels of mortgage stress.
The franchises at Fairfield Heights and Moorebank, in the city's south-west, were sold this year to new management before their previous owners went into liquidation.
This occurred as the cost-of-living crisis bites and sees Australians cut back on spending, which means less money for takeaway pizza and garlic bread as petrol prices surge back above $2 a litre.
The Australian Securities and Investments Commission has revealed the extent of the problem with Foodtreat Pty Ltd going into liquidation this week, as the previous owner of Domino's at Fairfield Heights.
Credit ratings agency Moody's Investors Service regards Fairfield as one of Australia's worst areas for mortgage stress, where borrowers struggle to pay their bills.
Two struggling Domino's takeaway pizza outlets have been sold in an area of Sydney suffering from higher levels of mortgage stress
In this part of south-west Sydney, 3.17 per cent of those with a mortgage are 30 days or more behind on their monthly repayments.
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A Melbourne restaurant owner was 'blown away' after losing 90 per cent of his bookings after posting a message of support for the Jewish community in a Facebook group.
The Mediterranean Greek Tavern, based in the south-eastern suburb of Elsternwick which has a large Jewish population, expressed sympathy and solidarity with locals after the atrocities committed by Hamas terrorists in Israel on October 7
That is double the national average of 1.57 per cent.
The ASIC announcements also showed Flavorfood Pty Ltd going into liquidation on October 30 as the previous owner of Domino's at Moorebank.
Moorebank is next door to Casula where 2.92 per cent of borrowers are behind on their repayments.
Shumit Banerjee, a registered liquidator and chartered accountant from Westburn Advisory, said the two companies under his administration had sold the franchises back to Domino's.
'I understand these outlets, stores were sold back to the franchisor, I am unaware of their current trading status,' he told Daily Mail Australia on Wednesday.
'A number of individuals were the owners of the stores.'
Foodtreat and Flavorfood are two separate companies with common shareholders.
'Each entity previously ran separate franchises, stores,' Mr Banerjee said.
Sydney's south-west is the state's third-worst area for mortgage arrears.
This area has three suburbs in the 'worst five' list for mortgage delinquencies in New South Wales, with Cabramatta also on the list.
That data covers May before the Reserve Bank of Australia raised interest rates again in June for the twelfth time in little more than a year.
The RBA is widely expected to raise interest rates again on Melbourne Cup Day next week, with inflation at 5.4 per cent, still well above its two to three per cent target.
Those with a job and paying off a mortgage are the worst affected by the cost-of-living crisis, with new Australian Bureau of Statistics data showing employee living costs surging by a whopping nine per cent in the year to September.
By comparison, pensioner living costs went up by 5.7 per cent, or a level only slightly above inflation with those in the older age group more likely to have paid off a mortgage, sparing them repayment or rent nightmares.
A Compare the Market survey of 1,000 Australians, taken in August, found 28.6 per cent of Australians had no savings, with younger Generation Z individuals more likely to be struggling.
The Australian Securities and Investments Commission has revealed the extent of the problem with Foodtreat Pty Ltd going into liquidation this week, as the previous owner of Domino's at Fairfield Heights
Those with a job and paying off a mortgage are the worst affected by the cost-of-living crisis, with data showing employee living costs surging by nine per cent in the year to September
