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Your next pizza party might be a bit more out of reach! Australia’s largest pizza chain, Domino’s, is set to close dozens of stores worldwide following a $300 million loss – only its second annual loss since becoming a public company more than two decades ago.
The dismal result comes as same-store sales dropped 4.1 per cent across its 3,500-plus global network over the last financial year. This includes a 4.7 per cent drop in the local Australia and New Zealand market, a 6.7 per cent fall in Asia and a 2.2 per cent loss in Europe.
Domino's acknowledges this loss was largely driven by the failure of an aggressive overseas expansion, with the French and Taiwanese markets alone contributing around $116.2 million in losses. As a result, the Aussie-led pizza chain will shut 60 underperforming stores, including 29 in Australia and New Zealand, 25 in Europe and six in Asia.
In sad news for savvy pizza lovers, the closures also come as Domino’s officially pivots away from offering cheap deals and bargain vouchers in the Aussie market.
"The result reflects the company's deliberate transition towards profitable and sustainable sales growth, with long-term franchisee profitability prioritised over headline sales," Domino's said in a statement to the ASX.
Domino’s executive chairman Jack Cowin highlighted that increasing pizza prices by just 70 cents significantly boosts store profitability. The trade-off has delivered early gains in Western Australia, where store earnings rose 30 per cent despite lower order volumes.