The world’s largest pizza chain—Domino’s—announced that it’s closing 142 stores across Russia, via DP Eurasia, its franchise holder in the country.
That company, which also owns the rights to Domino’s locations in Turkey, Azerbaijan, and Georgia, said it planned to declare bankruptcy for its Russian restaurants, run by subsidiary DPRussia.
“With the increasingly challenging environment [in Russia], DPRussia’s immediate holding company is now compelled to take this step,” DP Eurasia wrote, adding that it was still evaluating the impact on its financial operations.
After Russia invaded Ukraine, Domino’s Pizza—the US parent company of DP Eurasia—donated all royalties from franchises in Russia to humanitarian efforts in Ukraine for the “foreseeable future.” The company wasn’t immediately available to confirm that this policy is still in effect.
The status of American fast food in Russia
Dozens of US companies are still operating in Russia, including rival fast food chains Sbarro and TGI Fridays, according to a Yale University database tracking their presence in the country. Other competitors, like KFC and Pizza Hut, have completely pulled out of the Russian market.
Some restaurant chains that left have seen Russian fast food replacements fill their empty storefronts. For example, Starbucks has become Stars Coffee, while McDonald’s locations have been relaunched as burger joints called Tasty, Period. A similar rebranding could happen with Domino’s current real estate throughout Russia.
Domino’s Pizza’s global reach, by the digits
$17.5 billion: Global retail sales for Domino’s Pizza in 2022, roughly half of which came from the US market.
20,000: Approximate number of Domino’s locations worldwide, in more than 90 countries.
99%: Share of Domino’s stores outside the US that are franchised to independent owners.
2/3: Share of total sales via Domino’s digital platforms. The company’s inventive online sales techniques, like the introduction of the “Pizza Tracker,” have played a major role in its recent growth.
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