Domino’s Pizza considers selling Russian business
Ten months after the Kremlin started the conflict in Ukraine, the owner of the Domino’s Pizza restaurant in Russia is thinking about selling the location.
One of the few Western companies that have not ceased operations in Russia is DP Eurasia, which holds the franchise for Domino’s Pizza.
In Russia, DP Eurasia operates 171 Domino’s Pizza locations, 68 of which it owns and the remaining 103 of which are licenced to regional owners.
In Georgia, Azerbaijan, and Turkey, it also runs the Domino’s franchisee. Russian invaded Ukraine on February 28, 2022, DP Eurasia declared that it was “too early to calculate any potential consequences for the group’s Russian business.”
In the following statement, the company said: “DP Eurasia is startled and saddened by the fighting and the impact it has had on all of the innocent citizens across the region.” The safety and well-being of all group employees and customers remain its top concerns.
At the time, DP Eurasia declared that it would stop paying the Russian company its royalties and would restrict foreign investment.
When the conflict started in Russia, several Western fast food chains shut down.
McDonald’s closed all 850 of its locations, blaming the “humanitarian crisis” and “unpredictable working environment” brought on by the conflict in Ukraine. Alexander Govor, a Russian billionaire, purchased the majority of the company and renamed the eateries under the slogan “Vkusno I Tochka,” which translates to “Tasty and that’s it.”
Yum! Brands, which owns Pizza Hut and KFC, left the Russian market by selling its locations to regional companies that already had franchises in the country.
Burger King’s parent company, Restaurant Brands International, has a joint venture that operates in Russia. It claimed that the Russian owner of the 800 stores “refused” to shut them down when it sought to halt business.
In response to rumours that it will quit Russia, DP Eurasia stated on Wednesday that it was “assessing its position in Russia, the impact of sanctions, and its continued capacity to service its customers in Russia.”
The statement continued, “Whilst work on a prospective transaction is ongoing, there can be no assurance as to the conclusion,” seemingly alluding to the possibility of selling off Russian operations.