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Domino’s Pizza officially shut down its shops in Italy, after locals favoured their native restaurants over the American fast-food chain.
The last 29 pizza shops just closed, nearly seven years after the company launched its first location in the country, says a reported in Bloomberg. Domino’s had initially planned to open up to 880 stores in Italy.
When the chain first entered Italy in 2015, through an agreement with ePizza, it also aimed to use its American-style toppings and well-structured delivery service to stand out amongst its competitors.
However, when traditional and local pizza stores offered even more delivery options throughout the pandemic, Domino’s faced even bigger competition.
“We attribute the issue to the significantly increased level of competition in the food delivery market with both organised chains and ‘mom & pop’ restaurants delivering food, to service and restaurants reopening post pandemic and consumers out and about with revenge spending,” ePizza said in an investment report, attached with its fourth-quarter 2021 results, acquired by Bloomberg.
Domino’s operations have also encountered some financial issues over the years. The company had a debt of 10.6 million euros by the end of 2020.
In April, the restaurant chain received court protection, which “prevented lenders from demanding debt repayment or seizing company assets”. However, that protection expired on 1 July.
Following the shut down of its Italy-based stores, people on social media have expressed how they are not surprised to see the American-based chain leave Italy.
“Trying to open Domino’s Pizza in Italy is like trying to sell snow in the North Pole,” one Twitter user wrote.
“If you ever feel you’re being outrageously over-confident about something, just remember that Domino’s thought they’d be able to justify opening 880 stores in Italy,” another added.
A third person said: “Hilarious to think that Domino’s thought they could conquer Italy. Did they actually compare their distinctly-average-but-extortionate pizzas to an authentic Napoletana? Madness.”
When Domino’s opened its first restaurant in Milan back in October 2015, the company expressed how its shops would be using all local ingredients.
“We are purchasing all of our products from Italian producers. We’ve created our own recipe, starting for the original pizza recipe, with Italian products, like 100 percent tomato sauce and mozzarella,” Alessandro Lazzaroni, lead of the franchise, said in a press release at the time, via CNBC.
The Independent reached out to Domino’s Pizza for comment.