Domino’s Pizza Enterprise to close 172 Japan restaurants to improve profit
The brand aims to focus on prefectures where it has the advantage.
Domino’s Pizza Enterprise will close 205 restaurants, most of which are in Japan, to improve profitability.
Following a review, DPE said it plans to close 172 restaurants in Japan, to focus on prefectures where it can leverage scale, brand strength, and operational efficiencies, according to its trading update.
These closures are expected to generate AU$10m to AU$12m annualised EBIT uplift whilst incurring one-off restructuring costs of $61.8m.
DPE said many of the restaurants to be closed were opened during the COVID-19 sales surge but has since struggled with declining post-pandemic demand and higher input costs. The stores selected for closure have low weekly order volumes and limited ability to reach profitable weekly order counts in the near term.
“Some of our COVID-period expansion resulted in stores that simply weren’t optimal based on our current customer proposition and removing them will strengthen our network. We are committed to being disciplined in expansion—prioritising locations in high-density prefectures where we can drive incremental, profitable growth. To reach our potential, we are taking decisive action. We are also refining our value proposition and improving our pricing strategy to position existing and new stores for sustainable success,” Mark van Dyck Group CEO & Managing Director of DPE said.
