Domino’s Pizza Enterprises, the largest franchisee of the Domino’s brand, will close 205 underperforming stores across various international markets. The closures, announced in late February, are part of a strategy aimed at improving profitability, strengthening franchise partnerships, and positioning the company for long-term growth.
The closures will primarily affect Japan, where 172 locations are set to shut down between April and June. The decision follows a review of Domino’s operations and finances to optimize the network, enhance shareholder returns, and improve the overall customer proposition. Despite these closures, Domino’s sees Japan as a significant growth market for quick-service restaurants, particularly pizza, and believes the move will strengthen its presence in the region for the long term.
The $9.4 million in cost savings generated from the closures is expected to contribute to a more sustainable and profitable operation. CEO Mark van Dyck explained that some of the closures stem from stores opened during the pandemic that no longer align with the brand’s current customer expectations.
While Domino’s continues to expand in several regions, including Australia, New Zealand, and Europe, customers in local markets are unlikely to see closures at nearby stores. The closures are largely focused on underperforming locations in select international markets, ensuring that most Domino’s outlets in other countries, including the U.S., remain unaffected by this initiative.
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