Domino’s pizza in Russia to shut down all outlets – joins western fast-food exit trend as DP Eurasia files bankruptcy for DPRussia Unit.
Following the exit of McDonald’s and Starbucks over a year ago, Domino’s Pizza in Russia to Close All Outlets, Marking Significant Western Fast-Food Departure
According to an article by Boston News, Domino’s Pizza in Russia is closing all Russian outlets, following McDonald’s and Starbucks in exiting the country over a year ago. DP Eurasia, which holds the franchise rights for Domino’s Pizza across several nations, will file for bankruptcy for its Russian unit, DPRussia. This move underscores the tough choices
In the aftermath of the Ukraine war, Western companies, including Domino’s Pizza in Russia, face heightened challenges as the Kremlin increases the difficulty and cost associated with selling businesses in the country. The company’s choice to exit the Russian market is influenced by the demanding business landscape, culminating in the discontinuation of the sale process for DPRussia. The financial repercussions of this move are yet to be fully understood.
The company operates 142 stores in Russia, ranking as the third-largest pizza delivery business. Similar to McDonald’s and Starbucks, these outlets from Domino’s Pizza in Russia might continue under new ownership and branding.
Domino’s Pizza Inc Cuts Ties with Russian Market as Dominos Pizza in Russia Faces Uncertainty Amidst Global Company Exodus
In a strategic move, Domino’s Pizza Inc has officially cut ties with its Russian business counterpart. This decision aligns with the trend of major companies, including McDonald’s, Coca-Cola, and Starbucks, exiting the Russian market after the contentious Ukrainian invasion last year. This exit strategy has opened the door for Russian takeovers and rebranding, potentially impacting Domino’s Pizza in Russia, currently ranked as the third-largest pizza delivery business in the country.
Among the numerous foreign companies opting to distance themselves from Russia’s unstable climate, Unilever, the parent company of well-known brands such as Ben & Jerry’s and Dove, has also faced scrutiny for its departure. In a parallel vein, Domino’s Pizza in Russia, now stands at a crossroads due to its disassociation from the American multinational.
Despite criticism, Unilever’s exit has reportedly contributed a substantial $1.151 billion to the Russian economy, sparking discussions about the intricate balance between financial gains and ethical considerations in tumultuous environments. This dynamic landscape underscores the complex decisions that companies must make to navigate the challenges of such situations.