Operations

Domino's exits Italy after sales fall flat

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August 10, 2022

Domino's Pizza is shuttering its 29 local stores in Italy after locals failed to embrace American pizza, according to a Bloomberg report.

The brand had a franchising agreement with local franchisee starting in 2015 with ePizza SpA, believing Italians would enjoy Domino's delivery service. Instead, local pizzerias began delivering themselves or through third-party delivery companies.

EPizza SpA had hoped to open more than 800 Italian locations.

"We attribute the issue to the significantly increased level of competition in the food delivery market with both organized chains and 'mom & pop' restaurants delivering food, to service and restaurants reopening post pandemic and consumers out and about with revenge spending," ePizza said in a report to investors that accompanied its Q4 2021 results.

Domino's had acquired 10.6 million euros ($10.8 million) in debt by the end of 2020.

Reps for ePizza and Domino's didn't respond to Bloomberg's requests for comment and calls to local Italian stores went unanswered.