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Domino's quit Italy after locals avoided American pizza

Some customers were surprised by the closure and reached out to the chain's Italian social media channels to ask why and why their calls and orders were not delivered. Their local store has closed.

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Bloomberg News

Bloomberg News

Giulia Morpurgo and Antonio Vanuzzo

A Margherita pizza.
Margherita pizza. Photo by Arturo Holmes /Photographer: Arturo Holmes/Gett

Home of pizza is ephemeral Turns out, Italians preferred local restaurants to the American version.

His last of Domino's 29 branches has closed after the company began operations in the country seven years before him.

The company borrowed heavily for its plans to open 880 stores, but faced stiff competition from local restaurants expanding their delivery services during the pandemic, and cash was running out. He sought protection from his creditors after being late on his debt repayments.

The US chain differentiated itself by offering a structured nationwide delivery service, which she expanded into Italy in 2015 through a franchise agreement with ePizza SpA, along with American-style toppings such as pineapple. I had a plan to convert.

“This problem can be attributed to the significantly increased level of competition in the food delivery market. , with services and restaurants reopening after the pandemic and consumers on the go, ePizza said in an investor report accompanying its fourth quarter 2021 results:

Ambitious expansion has been challenged by traditional pizza makers expanding deliveries and contracting third-party services such as Deliveroo Plc, Just Eat NV and Glovo. rice field. Avoided eating out.

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ePizza and Domino's US and Italian representatives were contacted for comment. There was no reply. Calls to all 13 remaining Domino stores in Italy went unanswered. The company has already scaled back its operations in the country from his 2020 peak, halting deliveries through its website on July 29.

Still, some customers were surprised by the closure. , turned to the chain's Italian social media channels, asking why calls and orders were not going through and why local stores were closing.

A 90-day court protection for creditors was granted at a court held in Measures to prevent lenders from demanding debt repayment or seizing company assets expired on July 1. There are no further updates on the court process, according to the court's electronic filing or the Italian Chamber of Commerce.

The company had €10.6 million ($10.8 million) in debt at the end of 2020, according to its latest audited annual report.

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