November 15, 2024

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Domino’s tried to sell pizza to Italians. Failed

Domino’s tried to sell pizza to Italians.  Failed
Seven years after it debuted in the country, American pizza giant Its stores are officially closed Having failed to win over locals who preferred local options, according to a report by Milan today.
EPizza SpA, the franchise operator of Domino’s (DMPZF) A brand in Italy filed for bankruptcy in April, after it struggled to make enough sales during two years of pandemic restrictions, according to a document filed in a Milan court.
The company halted activity at all of its Domino’s stores on July 20, according to a report by food serviceItalian Food Industry Bulletin.

Although some might attribute Domino’s failure to his brazen attempt to sneak into the homeland of pizza with American fare, ePizza said it went bankrupt due to competition from food delivery apps.

The court filing said the Milan-based company faced “unprecedented competition” from local restaurants that have begun using services such as Glovo, Just Eat and Deliveroo during the pandemic.

Domino’s said in a document, attached to the court filing, that last year’s ePizza problems were the result of “the dramatically increased level of competition in the food delivery market with both organized chains and ‘mom & pop’ restaurants serving food to survive.”

She also encountered problems Once the pandemic restrictions were relaxed and consumers started to visit sit-down restaurants again.

The Milan court had given the company a 90-day grace period, during which time its creditors were not allowed to demand payment or take away its assets. It expired at the beginning of July.

Domino’s had high hopes when it moved into the Italian market in 2015, signing a 10-year franchise contract with ePizza. Planned to introduce large-scale pizza delivery service to the country, which was absent at the time, according to the court filing.

By the beginning of 2020, ePizza was operating 23 stores in Italy and six more through a subsidiary franchise partner.

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Neither Domino’s nor ePizza immediately responded to CNN Business’s request for comment.