Domino’s Pizza will close all 142 stores in Russia for now
Spread the love

One of the first major Western fast-food chains to leave the country since McDonald’s and Starbucks left over a year ago is Domino’s Pizza.

Announcing Monday that it would file for bankruptcy for its Russian unit, DPRussia, DP Eurasia owns franchise rights for Domino’s Pizza in Russia, Turkey, Azerbaijan and Georgia.

As a result of the Ukraine war, Western companies that stayed in Russia are facing increasingly difficult choices. Kremlin has made it more difficult and more expensive for western companies to sell their Russian businesses. It has also seized some firms’ local assets, such as Danish brewer Carlsberg and French yogurt maker Danone.

As a result of the increasingly challenging environment, DPRussia’s immediate holding company has taken this action, which will result in ending the sale process of DPRussia as a going concern and, inevitably, the group’s presence in Russia, said DP Eurasia.

An insolvency’s financial impact can’t be determined at this point, it said.

In Russia, the company operates 142 stores and is the third-largest pizza delivery service. DP Eurasia said in December that it was reviewing its presence in Russia and working on a potential sale.

There is a possibility that its pizza outlets will continue to operate under new ownership and branding in Russia. After their parent companies left Russia, McDonald’s and Starbucks were acquired by local players and renamed.

“Starbucks became Stars Coffee, and McDonald’s became “Vkusno i tochka,” which means “tasty, period.”

The New York-based Domino’s Pizza Inc. said in a statement in early 2022 that its subsidiaries would no longer support the Russian market.

Researchers at Yale University estimate that more than 1,000 foreign companies have left or suspended operations in Russia since the Kremlin invaded Ukraine.