This decision follows the departures of McDonald’s and Starbucks over a year ago.
Domino’s Pizza in Russia is set to shut down all of its outlets, marking a significant move as one of the first major Western fast-food chains to exit the country
The franchise company DP Eurasia, responsible for Domino’s Pizza in Russia, Turkey, Azerbaijan, and Georgia, announced on Monday that it plans to declare bankruptcy for its Russian unit, DPRussia.
The withdrawal of Domino’s Pizza in Russia underlines the tough choices confronting Western corporations that remained in Russia after the onset of the Ukraine conflict. The Russian government’s actions have made it increasingly complex and expensive for foreign companies to operate within the country. This has led to the takeover of local assets in some instances, as exemplified by Danish brewer Carlsberg and French yogurt producer Danone.
DP Eurasia stated, “Given the decreasingly grueling terrain, Domino’s Pizza in Russia’s immediate holding company is now impelled to take this step, which will bring about the termination of the attempted trade process of Domino’s Pizza in Russia as a going concern and, inescapably, the group’s presence in Russia.” The financial counteraccusations of this potential bankruptcy are yet to be determined.
The company runs 142 Domino’s Pizza in Russia outlets and stands as the third-largest pizza delivery enterprise in the nation
While the fate of Domino’s Pizza in Russia outlets remains uncertain, there is a possibility that they could continue operations under new ownership and a different brand. Similar cases have occurred with McDonald’s and Starbucks, both of which were taken over by local entities and rebranded after their parent companies exited Russia.
Domino’s Pizza Inc. from New York declared in a statement that it ceased providing support to the Russian market through its subsidiaries in early 2022. Experts from Yale University reveal that over 1,000 foreign companies have withdrawn or temporarily halted operations in Russia since the start of the full-scale invasion of Ukraine by the Russian government. Approximately 378 companies worldwide are still engaged in business in Russia, although about half of them have suspended new investments and curtailed their activities in the country.
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