Domino’s Pizza Enterprises, the largest franchisee of the iconic pizza chain, has revealed plans to shut down more than 200 of its locations across the globe. However, the closures are unlikely to affect your local Domino’s, as most of the impacted stores are concentrated in specific regions, particularly Japan.
According to reports from Nation’s Restaurant News, the majority of the 205 closures will take place in Japan. The franchisee, which oversees Domino’s operations in several countries, including Australia, New Zealand, Belgium, France, The Netherlands, Japan, Germany, Luxembourg, Taiwan, Malaysia, Singapore, and Cambodia, made this announcement in late February. Despite the significant number of closures, the franchise operates thousands of locations worldwide, and the affected stores represent only a small portion of its global presence.
The closures are expected to result in a financial setback of approximately $9.4 million, as detailed by Forbes Australia. Many of the Domino’s outlets facing closure were initially launched during the COVID-19 pandemic, a period that provided a temporary surge in sales. The pandemic led to a boom in demand for delivery services, and many stores saw a boost in business during the lockdowns. However, as restrictions eased and customer habits returned to normal, demand for some of these locations has significantly decreased. As a result, sales have slumped, and these underperforming stores are now being shut down as part of a larger restructuring effort.
Despite the closures, customers shouldn’t be too concerned about the availability of Domino’s Pizza in their area. For most locations outside the affected regions, your local Domino’s is likely to remain operational, continuing to serve its loyal customer base. The closures predominantly affect stores that were located in areas where the post-pandemic recovery has been slow, making the business model for these outlets unsustainable.
Domino’s Pizza Enterprises has not disclosed specific details regarding the exact locations of the closures, but it has emphasized that the decision is part of a broader strategy to optimize its operations. While some of these closures might be unfortunate for those who frequent these stores, the company is still focused on expanding and maintaining a robust presence in regions with stronger demand.
In the coming months, Domino’s will likely continue to assess its global operations, particularly in the post-pandemic landscape, where changing consumer behavior and delivery preferences play a significant role in shaping the company’s strategy. For pizza lovers, this means that while some locations may close, the brand’s widespread availability remains strong, with numerous stores continuing to serve up hot and fresh pizzas worldwide.
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