JAPAN / FRANCE | Global QSR chain, Domino’s has announced the closure of up to 110 stores across its Japan and France markets.
International pizza chain, Domino’s has released an outlined plan to shut down low-volume stores in Japan and France, following a year-long strategic review.
Nearly 80 stores are set to close in Japan, a partial consequence offset by the opening of over 20 new stores in more prominent locations. France will see the closure of between 20 to 30 low-volume stores, offset by the opening of 10 new stores.
Store growth is expected to be either flat or slightly higher in the 2025 financial year as a result. This is predicted to grow further in 2026 by three to four percent.
Globally, Domino’s shares are down almost 40 percent to just USD 36.09 this year. This is due to the chain’s narrowing margins in the midst of a turbulent and very challenging economic landscape.
Originally an Australian company, Domino’s opened more than 400 stores in Japan between the financial years of 2020 and 2023. The company said it had reviewed and tested marketing spend and had considered the ongoing viability of some stores.
A plan has been drafted to ensure that customers who had previously been served at stores proposed to be closed will be able to be served at neighbouring stores. This will improve unit economics and minimise the total sales impact for the market. Overall, Domino’s expects a positive impact on earnings from the proposed closures.
This plan has also been adopted for the proposed closures in France. Domino’s France outlined in May plans to apply proven global strategies, with local nuance, in this important market. A focus of these efforts included aligning stores on best practice systems, to improve operations and customer satisfaction.
The Company will release Full Year Results on August 21st.
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