In a bid to boost long-term profitability, Domino’s Pizza has announced that it will be closing more than 200 underperforming stores worldwide.
This major decision was made by the company’s new CEO, Mark van Dyck, who has been in the role for just three months.
A New Era for Domino’s
The move is part of a larger effort to “reshape” the business, with 172 stores set to close in Japan, and the remaining closures taking place in Europe and Australia.
According to van Dyck, some of the stores that were opened during the COVID-19 pandemic simply aren’t optimal for the company’s current customer base, and closing them will actually strengthen the network.
What Led to This Decision?
In recent years, Domino’s has struggled to stay afloat. The company has already closed a significant number of stores, including 10% of its locations in Japan and France last year.
The new CEO is taking a proactive approach to turn things around, with a focus on long-term success. The closures are expected to save the company around $15.5 million.
A New Leader at the Helm
Mark van Dyck brings a wealth of experience to the role, having previously served on the executive board of Compass Group, a London-listed food service company with a market capitalization of $79 billion.
His track record of successful transformations is expected to be a major asset in turning Domino’s around.
What’s Next for Domino’s?
The company is prioritizing creating value for its customers, franchise partners, and shareholders. With a renewed focus on long-term success, Domino’s is taking decisive action to ensure its future growth and profitability.
As the company navigates these changes, one thing is clear: it’s a new era for Domino’s Pizza.