The closure of store outlets in Japan and France by Domino’s Pizza has caused a stir in the market. Approximately 100 fast food outlets will be shut down in these countries following a review of sales and operations. This decision led to an 8 percent drop in the company’s share price on the Australian Stock Exchange on July 18.
On a positive note, Domino’s reported ongoing success in Australia, New Zealand, Germany, and Singapore, with improvements also seen in Belgium, Netherlands, and Luxembourg. Despite the closures, the impact on delivery customers is expected to be minimal as orders can still be received.
In Japan, 80 “low volume” stores will be closed, but this will be offset by the opening of 20 new stores in more promising locations. The company attributes this move to a larger presence of immature stores in underpenetrated markets.
In France, Domino’s plans to reduce its footprint by 10 to 20 stores in the 2025 financial year. The company aims to implement global strategies with local adaptations to enhance operations and customer satisfaction in this key market.
Looking ahead, Domino’s anticipates flat to slightly positive store growth in FY25 globally, with a net growth of 3 to 4 percent expected in the 2026 financial year. This falls short of the previously predicted 7 to 9 percent new store openings in the next three to five years.
Despite the adjustments, Domino’s remains committed to its long-term goal of reaching 7,100 stores, nearly twice its current network size. The company is focused on enhancing franchise partner profitability and reducing store payback periods to drive sustainable organic growth.
In the competitive landscape, Domino’s fast food rivals on the ASX include Guzman y Gomez, Collins Foods, and Restaurant Brands New Zealand. Each company is navigating its own path to success in the fast food industry.
Overall, Domino’s strategic decisions in Japan and France reflect its commitment to optimizing operations and driving growth in key markets while maintaining a focus on customer satisfaction and profitability. Please rewrite this sentence.
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