Din Tai Fung has terminated its franchise rights in Australia, ending its partnership with local operators after facing penalties for underpaying workers.
The Taiwan-based restaurant chain confirmed to 7News that it has withdrawn from its Australian franchise agreement but stated that “any plans regarding the Australian market are still under evaluation”.
The decision follows an investigation by Australia’s Fair Work Ombudsman, which found that between 2014 and 2018, three Din Tai Fung branches in Sydney and Melbourne deliberately underpaid 17 employees and falsified salary records.
In April last year, the company was fined $3.89 million for the violations.
Since then, all Din Tai Fung locations in Australia have closed and have been replaced by a new restaurant chain, Double Chin Eats. The new establishments operate at the exact same locations, employ many of the same staff, and offer a similar menu.
An employee of Double Chin Eats stated that the new chain is run by a company that had “bought everything from the old one, including the employees”.
The Fair Work Ombudsman reported that two former operators of Din Tai Fung’s World Square branch in Sydney – GM Hannah Handoko and HR manager Sinthiana Parmenas – have paid their fines of $92,232 and $105,084, respectively.
However, the agency has yet to receive payment from Din Tai Fung itself.
With the franchise agreement now dissolved, Din Tai Fung’s Taiwan headquarters has distanced itself from the former Australian operations, reiterating that its future in the market remains undecided.
