Andrew Gregory, the newly appointed chief executive of Domino’s Pizza Australia, is set to travel to France this week to meet with senior executives from Domino’s Pizza Inc, the company’s US-based parent and franchisor, in an effort to mend a strained relationship between the two entities. The Nasdaq-listed Domino’s Pizza Inc has recently attributed weaker local sales in Australia to the Australian operator’s shift away from discount promotions, a strategy the US parent says has negatively impacted the broader global Domino’s network.

Gregory, who brings three decades of experience in the restaurant industry—including eight years leading McDonald’s Australian operations—believes that rebuilding trust and transparency is essential to improve cooperation between the ASX-listed Domino’s Australia and its US parent. “We have to work together,” he said, emphasizing the importance of a constructive partnership to restore growth.

The tension between the two companies has centered on the Australian approach to pricing and promotion. Billionaire Jack Cowin, chairman and major shareholder of Domino’s Australia, has defended the local strategy of reducing promotional discounts in favor of an “everyday low prices” model. Cowin argues this approach is necessary to regain customer loyalty, despite criticism from the US parent. Domino’s Australia is the largest international franchisee of Domino’s Pizza Inc, operating approximately 3,500 stores across Australia, New Zealand, Asia, and Europe.

Sandeep Reddy, chief financial officer of Domino’s Pizza Inc, recently informed US investors that the Australian business’s decision to limit discounting had resulted in a “drag” on the parent company’s financial performance. This contributed to Domino’s Inc missing analyst expectations in its most recent quarterly earnings, further straining the relationship.

Gregory outlined his plan to visit markets outside Australia in the coming weeks, including France, where he will engage directly with Domino’s Inc leadership. He views their role as supportive partners and expects collaboration to refine tactics and restore sales growth. “If we are successful, their concerns will obviously reduce,” Gregory said, noting that the franchisor benefits when sales and store openings increase.

The Australian group’s move away from heavy discounting, which has been in place since late last year, was intended to create a sustainable pricing model akin to other successful retail chains. However, it led to nearly a 10 percent decline in sales as customers searched for value elsewhere. This downturn has also impacted royalty and franchise fee revenue streams received by the US parent.

Russell Weaver, CEO of Domino’s Pizza Inc, expressed optimism about Gregory’s appointment, highlighting his extensive experience in the restaurant industry. “We’re really looking forward to working with Andrew,” Weaver said, adding that Gregory’s leadership is expected to address promotional challenges and their broader effects on performance.

With Gregory at the helm, Domino’s Australia aims to rebuild its foundation and revert to growth by the end of the financial year, signaling a potential easing of tensions and a renewed focus on collaboration between the Australian operator and its US parent.