Domino’s has shuttered its last outlet in Italy, only a year after claiming that Italians were “not fearful of putting pineapple on pizza.”
Domino’s said yesterday that it has closed the remainder of its 29 stores in Italy, blaming’significantly increased competition in the food delivery industry.’ Domino’s had expected to establish 880 locations and gain a 2% market share in the birthplace of pizza, but the company only lasted seven years in the nation.
Cultural differences and the might of current pizza vendors put a halt to the company’s audacious aspirations before they could be baked in the oven.
According to Bloomberg, parent firm ePizza informed shareholders, ‘We ascribe the problem to the greatly increased level of competition in the food delivery business, with both big chains and’mom & pop’ shops providing meals.’
In 2021, Domino’s presence in Italy peaked, with 34 locations open, including five in Rome.
A firm official said that their success shown that there are some Italians who aren’t frightened to put pineapple on pizza.
However, when independent competitors formed arrangements with delivery companies such as Just Eat and Deliveroo, Domino’s advantage gradually dwindled.
In a frantic attempt to keep the firm going, the country’s franchisees financed more than €10 million.
Last month, the protection against lenders calling in the cash expired.
The inability of Domino’s to establish itself in the birthplace of pizza may serve as a warning story to American appropriators, although several worldwide fast food brands have succeeded.
McDonald’s employs 25,000 employees in Italy in 640 restaurants, whereas Burger King has 225 locations.
In the United Kingdom, Domino’s earnings have fallen by 16% as the cost of ingredients has risen. The corporation said that it boosted franchisee rates on a ‘lagged basis,’ which means that the entire impact would not be realized until the last six months of the year.
It also said that earnings would be weighted towards the end of the year and maintained its full-year expectations.
Domino’s said it would raise its marketing spend’significantly’ to entice more consumers after sales fell 6.4% owing to the VAT hike.