Domino’s Australia has announced plans to close 205 underperforming stores, predominantly in Japan, following its recent trading update. The closures are expected to incur a one-off expense of $97 million; however, they will generate annual savings of approximately $15.5 million. CEO Mark van Dyck, who took on the role three months ago, emphasised the need for rapid and transparent action to reshape the business for sustainable success. The closures include 172 locations in Japan, many of which struggled after initially thriving during the COVID-19 pandemic due to a decline in demand and rising costs.
Currently, Domino’s operates around 1,000 outlets in Japan, but the specific locations of the other closures have not been disclosed. While the company acknowledged a $45 million loss in the Asia region, it still reported positive sales growth in Singapore, Taiwan, and Malaysia. Notably, Australia and New Zealand remained the only markets to show growth.
Despite the challenges, the announcement led to a rise in Domino’s shares on the Australian Stock Exchange, reflecting investor confidence in the company’s strategic direction. Domino’s Pizza Enterprises, the master franchisee for the brand in Australia, also operates across Asia and Europe.