10.6 million euros in debt: "Domino's" leaves the Italian market - last branch closed

Created: 08/13/2022, 06:38

By: Anna Lorenz

The well-known chain "Domino's" has now closed its last franchise branch in Italy.

The pizza giant from the USA was unable to assert itself against local providers - but probably not because of the pizza.

Rome – Domino's Pizza Inc.'s venture in 2015, opening a total of 880 branches in Italy and offering pizza there, had the effect of carrying owls to Athens.

Now the provider withdrew from the Italian market by closing the last restaurant.

The

TV channel summarized the story of the unsuccessful expansion.

The end of "Domino's" in Italy is sealed: the last branch of the pizza chain is closing

The pizza chain “Domino's” from the USA finally operated a total of 29 branches in Italy, legally via franchising with ePizza SpA.

Expanding into Italy involved taking out large loans.

However, "Domino's" was sure that it could score with its delivery service and stand out from local, often long-established, traditional pizzerias.

Until recently, “Domino's” did not see the quite obvious problem of an already well-saturated market with regard to pizza restaurants as a point that could give the project little chance of success.

Those responsible considered the toppings that deviate from the classic pizza toppings, such as those offered by a Hawaiian pizza (ham and pineapple), to be quite suitable for acquiring customers.

Corona pandemic thwarts "Domino's": Local pizzerias deliver

In the course of the corona pandemic and the associated restaurant closures, the oath came.

Due to the delivery strategies already implemented in the USA, "Domino's" could have gained a solid position on the Italian pizza market.

But things turned out differently.

Local pizzerias were quick to ensure profound delivery options;

some third-party providers such as Deliveroo Plc, Just Eat Takeaway.com NV or Glovo also used this to completely outsource the delivery.

The short-term market advantage that "Domino's" had in 2020 soon leveled out.

"Domino's" is very popular in the USA - in Italy, on the other hand, the pizza chain was not able to establish itself.

(Archive image) © RICHARD B. LEVINE IMAGO / Levine-Roberts

"We attribute the problem to the significantly increased competition in the food delivery market with both organized chains and corner restaurants delivering food," ePizza SpA told investors in its quarterly report 2021/IV.

Also, "service and restaurants reopening after the pandemic" and consumer spending sentiment following the restrictions are all factors that ultimately forced "Domino's" to be unable to meet payment plans.

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"Domino's" in Italy: Expansion ends with debts in the tens of millions

According to annual reports, according to

, the company had debts of €10.6 million at the end of 2020, prompting lenders to announce appropriate steps to repatriate the capital.

ePizza SpA then applied for legal protection.

A court decision made in Milan in April 2022, which expired on July 1, 2022, prohibited creditors from taking enforcement action against debtors.

It is not known how the debts of the Italian “Domino's” currently stand;

further judicial protection should not have existed.

(askl)