The British franchisee of Domino's pizza has plans to sell its activities in Iceland, Norway, Sweden and Switzerland. However, there may be hope for the approximately one hundred shops in those four countries.
"Not the best owners"
Since 2017, the Domino's branches in those four countries have been operating at a loss and Domino's Pizza Group, which is the franchisee for these countries, says they are difficult and very different markets. In addition, the stores require higher operational costs due to their structure. The company now wants to divest those divisions, in order to concentrate on its profitable British and Irish operations, as management stated alongside the publication of the figures for the third quarter.
"Over the past six weeks we have completed a review with external consultants, assessing each of our four international markets and the future prospects for our businesses. We have concluded that, whilst they represent attractive markets, we are not the best owners of these businesses. The Board has therefore decided to exit the markets in an orderly manner", the company stated in a press release.
Domino's activities in Belgium and the Netherlands are operated by another franchisee, Domino's Pizza Enterprises, and are not under threat. The company, that is also active in Australia, France, Germany, Japan, Monaco and New Zealand, might also be a potential buyer for the approximately hundred branches that are now for sale.