Domino’s Pizza Enterprises, the Australian-based master franchisee of the Domino’s brand, has announced a dramatic decision to shut down 205 underperforming stores across its global network. The biggest blow comes in Japan, where 172 locations will be axed as part of an aggressive strategy to refocus operations on more profitable regions.
Domino’s Takes Swift Action Under New Leadership
The move comes just three months after Mark van Dyck took over as CEO and Managing Director. Wasting no time, he delivered a clear message: underperforming outlets have no place in the company’s future.
“When I started in this role three months ago, I said we would move decisively to reshape our business for long-term success,” van Dyck stated.
The closures, while costly upfront—$97 million in one-off costs—are expected to generate $15.5 million in annual savings, a long-term win for shareholders and franchise partners.
Japan Takes the Biggest Hit
Japan’s COVID-era expansion boom has backfired. Many of the now-doomed locations were opened during the pandemic, when demand for delivered food skyrocketed. However, as post-pandemic habits shifted and operational costs soared, these stores found themselves struggling to stay afloat.
“Stores selected for closure have low weekly order volumes and limited ability to reach profitable weekly order counts in the near term,” the company explained.
Despite Japan’s losses, Domino’s still operates around 1,000 stores in the country—a sign that the market remains valuable, but only for the strongest locations.
Mixed Results Across Global Markets
While Japan was a major source of financial pain—contributing to $45 million in regional losses—not all markets performed poorly. Singapore, Taiwan, and Malaysia showed positive growth, proving that demand for Domino’s remains strong in Asia.
In Europe, sales remained in positive territory, despite a $20 million network sales loss. Meanwhile, Australia and New Zealand stood out as the only regions to report consistent growth, reinforcing the brand’s stronghold in its home market.
Despite the closures, the market responded with optimism. Domino’s shares surged on the Australian Stock Exchange (ASX), signaling investor confidence in the company’s strategic shift.
