Domino’s Pizza indicates shutdown of operations in Russia

The owner of the Domino’s Pizza franchise in Russia has announced plans to close its branches and file for bankruptcy, signaling an end to its operations due to the challenging business environment in the country.

DP Eurasia, which operates 171 Domino’s Pizza outlets in Russia, has decided not to proceed with the sale of its pizza chain’s shops in the face of increasing difficulties. This move comes in the wake of Western companies disengaging from Russia following the Ukraine invasion and economic sanctions.

While some businesses have chosen to exit, others, including Domino’s, have faced criticism for remaining. DP Eurasia owns 68 of the Domino’s Pizza shops in Russia and franchises 103 to local operators. The company’s presence in Russia will be terminated as a result of this decision.

DP Eurasia, which also holds master franchise rights for Domino’s in Turkey, Russia, Azerbaijan, and Georgia, had been evaluating its options after sanctions were imposed. The Russian economy has been impacted by sanctions since the conflict in Ukraine in February 2022, leading to several well-known companies shuttering their operations.

Pressure was applied to other major brands like McDonald’s and Coca-Cola to follow suit. Some companies, such as Unilever, have defended their continued operations in Russia, citing complexities and potential takeovers by the Russian state.

Despite this, Domino’s Pizza Inc., the American multinational and master franchisor, clarified that it had ceased supporting the Russian market through its subsidiaries since early 2022.

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