Domino’s pizza will close its 142 outlets in Russia
Domino’s pizza will close 142 stores in Russia
142 outlets of Domino’s pizza will close in Russia
In a recent article published by WHDH.com, Domino’s Pizza will close all its outlets in Russia, becoming one of the first major Western fast-food chains to exit the country since McDonald’s and Starbucks left more than a year ago.
DP Eurasia, the company that owns franchise rights for the Domino’s Pizza store in Russia, Turkey, Azerbaijan and Georgia, said on Monday that Domino’s Pizza store would file for bankruptcy for its Russian unit, DPRussia.
With the increasingly challenging environment, hard choices facing Western firms that stayed in Russia after the start of the Ukraine war. This made the company decide in closing all 142 Domino’s Pizza store. The Kremlin has made it more difficult and more costly to sell their businesses like the Domino’s Pizza store. And in some cases seized control of firms’ local assets.
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The company operates 142 Domino’s Pizza store in Russia and the Domino’s Pizza store is the country’s third-largest pizza delivery business. In December, DP Eurasia said it was reviewing its presence of Domino’s Pizza store in Russia and that work on a potential sale was ongoing.
It’s still possible that Domino’s Pizza store will continue to operate in Russia under new ownership and branding. The Domino’s Pizza store could be taken by local players just like McDonald’s (MCD) and Starbucks (SBUX) in Russia and renamed after their parent companies exited the country. Starbucks became Stars Coffee and McDonald’s is now Vkusno i tochka, which translates to Tasty. They could also rename the Domino’s Pizza store depending to its owner.
According to researchers at Yale University, more than 1,000 foreign companies have exited or suspended operations in Russia since the Kremlin launched a full-scale invasion of Ukraine. They added that 378 firms from around the globe continue to do business in Russia, although about half of these have suspended new investments and scaled back their operations in the country.
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