Domino’s pizza is driven out of Italy: Chain shuts its last store in failure of seven-year campaign to convert the country to American-style slices
- Last of Domino’s 29 stores in Italy has now shut, snuffing out plans for 880
- Chain had claimed some Italians are ‘not afraid of putting pineapple on pizza’
- Local independent competitors offering delivery during pandemic won battle
- Parent company ePizza blames ‘increased competition in food delivery market’
Just a year after Domino’s claimed that some Italians were ‘not afraid of putting pineapple on pizza’, the American delivery giant closed its final store in the country.
Blaming ‘significantly increased competition in the food delivery market’, Domino’s has shut the last of its 29 branches in Italy, seven years after it opened the first.
Domino’s had planned to open 880 stores and cook up a two per cent market share in the home of pizza.
But cultural differences and the strength of existing pizza sellers put a stop to the company’s bold plans before they were oven ready.
Domino’s had hoped to open 880 restaurants across Italy, but failed after a peak of just 34
Pizzeria O’Barone in Naples, part of a UNESCO World Heritage site, symbolises the Italian craft
Parent company ePizza told shareholders: ‘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’, Bloomberg reported.
Domino’s presence in Italy peaked in 2021, with 34 restaurants in operation, including five in Rome.
A company representative bragged that their success showed there are some Italians ‘not afraid of putting pineapple on pizza’.
But as independent rivals signed deals with delivery firms such as Just Eat and Deliveroo, Domino’s edge quickly vanished.
The nation’s franchisers borrowed more than €10million in a desperate effort to keep the company afloat.
Protection against lenders calling in the cash expired last month.
The failure of Domino’s to take hold in the home of pizza may serve as a cautionary tale to American appropriators, but some global fast food chains have had success.
McDonald’s employs 25,000 people in 640 restaurants across Italy, while Burger King operates 225 eateries.
In the UK, Domino’s has seen its profits fall some 16 per cent as the cost of ingredients has spiked.
The company had boasted that some Italians were ready to embrace pineapple on pizza
Domino’s has also seen its profits fall more than 16 per cent in the UK, with supply costs rising
The company said it increased prices for its franchisees but this was on a ‘lagged basis’, meaning that the full benefit will not be felt until the final six months of the year.
It added it is expecting profits to be weighted towards the end of the year and kept its full-year estimates unchanged.
Domino’s said it will boost its marketing spend ‘significantly’ to attract more customers, having seen sales dip 6.4 per cent due to the increase in VAT.
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