Domino’s failed in its attempt to sell pizza in Italy

Rome/London (CNN Business) – Domino’s entry into Italy was much more difficult than they expected.

Milan Today reports that seven years after it debuted in Italy, the American pizza giant has officially closed its stores after failing to win over consumers who prefer local options.

EPizza SpA, operator of the Domino franchise in Italy, filed for bankruptcy in April after failing to meet sales targets within two years of pandemic restrictions, according to a document filed with a Milan court.

The company closed all Domino branches on July 20, according to a report in Food Service, an Italian publication specializing in the food industry.

While some may attribute Domino’s defeat to its brazen attempt to infiltrate the homeland of pizza with its American offering, ePizza claims the failure was due to competition from food delivery apps.

The Milan-based company has faced “unprecedented competition” from local restaurants that have begun using delivery services such as Glovo, Just Eat and Deliveroo during the pandemic, according to the document filed with the court.

Domino’s said in a document, also filed in court, that ePizza’s difficulties last year were the result of the “dramatically increased level of competition in the food delivery market from both organized chains and local restaurants that serve food.” Food to survive.

The company also said it ran into problems once some of the pandemic restrictions were lifted and consumers began flocking to more traditional restaurants.

The Milan court has given the company a 90-day grace period, during which creditors cannot demand payment or forfeiture of its assets. That period ended at the beginning of July.

Domino’s had high expectations when it entered the Italian market in 2015, signing a 10-year franchise agreement with ePizza. The company had plans to offer a large-scale delivery service, which was not present in the country at the time, according to a court filing.

By the beginning of 2020, ePizza operated 23 branches in Italy and six more through another partner franchise.
Domino’s and Ipizza did not immediately respond to a CNN Business request for comment.

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