Domino’s Pizza UK to quit international markets
Domino’s UK has announced that it will close its international operations, where the pizza delivery firm said performance had been “disappointing”.
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Chief executive David Wild said said the decision to shutter its operations in Switzerland, Iceland, Norway and Sweden came after it decided “we are not the best owners of these businesses”.
Domino’s UK has operations in Switzerland, Iceland, Norway and Sweden, and holds a minority stake in German businesses. The company is a franchise of US-based Domino’s Pizza.
“The performance of our international business remains disappointing,” he said. The pizza company reported a fall in sales of 2.7 per cent, down to £25.3m, in its international markets in the 13 weeks to the end of September.
Domino’s grew the size of the pie in the UK and the Republic of Ireland, however, with sales rising 3.9 per cent to £288.2m.
It said hungry customers were increasingly seeking their pizza fix online. UK online sales grew by 7.2 per cent and Republic of Ireland online sales by 9.9 per cent over the period. Online now accounts for over 90 per cent of deliveries, Domino’s said.
Wild said: “We delivered a solid performance in our core UK and Ireland markets, with system sales up 3.9 per cent, against a market backdrop that remains challenging.”
“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.
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“We have concluded that, whilst they represent attractive markets, we are not the best owners of these businesses.”
(Image credit: Getty)