In a surprising turn of events that has left pizza lovers and industry analysts alike raising their eyebrows, Domino’s Pizza has announced a major strategic shift that will see the closure of over 200 stores across the globe. This decision, described as ‘decisive action’ by the company’s new CEO, Mark van Dyck, is aimed at reshaping the business and bolstering long-term profitability.
The closures, which will predominantly affect stores in Japan, with 172 locations set to shut down, as well as several others in Europe and Australia, are expected to save the company an estimated $15.5 million. This move comes on the heels of a period of aggressive expansion during the COVID-19 pandemic, which, according to van Dyck, led to the establishment of stores that no longer align with Domino’s current customer proposition.
Van Dyck, who took the helm just three months ago following the retirement of long-serving boss Don Meij, emphasised the importance of this restructuring in an ASX statement released on Friday morning. ‘To reach our potential, we are taking decisive action,’ he stated, highlighting the need to remove stores that are not contributing to the network’s strength.
The new CEO’s approach is one of swift and transparent action, with a focus on creating value for customers, franchise partners, and shareholders alike. This strategy reflects a shift from short-term gains to a more sustainable, long-term vision for success.
Domino’s has already experienced a significant number of store closures in recent years, particularly in Japan and France, where 10 per cent of their outlets were shuttered last year due to the impacts of the pandemic. These closures are part of a broader trend of re-evaluation and restructuring within the fast-food industry, as companies adapt to changing consumer habits and economic challenges.
Before stepping into the role of CEO at Domino’s, Mark van Dyck served on the executive board of Compass Group, a food service giant with a market capitalisation of $79 billion. His appointment was met with optimism, as Domino’s chairman Jack Cowin lauded his ‘track record of successful transformations’.
Cowin also paid tribute to the outgoing CEO, Don Meij, for his role in growing Domino’s from a Brisbane-based company into a global powerhouse, achieving market leadership in every region it has operated for more than three years in Europe and the Asia-Pacific. Meij’s tenure was marked by positive outcomes for stakeholders, including franchise partners, shareholders, and employees, leaving behind an impressive legacy.
How do you think this decision will impact your local Domino’s experience? Have you noticed any recent changes in service or menu offerings? We’d love to hear your thoughts—join the conversation and share your insights in the comments below!
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I think it is unlikely to impact my Dominoes experience at all since I live in Australia.
I stopped buying from Dominos a few years ago, due to the drop in quality of their products !!!