In an effort to shore up losses, Domino’s Pizza Group will be pulling out of four markets, including Iceland. This should not, however, affect the presence of Domino’s pizza in Iceland.
As the Guardian reports, Domino’s Pizza Group, which is based in the UK under license from its US parent company, intends to sell a total of 115 shops, all of them based in Norway, Sweden, Switzerland, and Iceland.
“Although the financial results have stabilised, the performance of our international business remains disappointing,” David Wild, the outgoing chief executive, told reporters. “We have concluded that, while they represent attractive markets, we are not the best owners of these businesses. The board has therefore decided to exit the markets in an orderly manner.”
Interestingly, Brexit has a role in this decision.
The company has been reportedly stockpiling ingredients in the event a no-deal Brexit significantly impacts imported supplies. As Domino’s international business continues losing revenue, and the October 31st deadline for Brexit looms, tensions have increased and have necessitated taking drastic measures.
For those worried this will mean the end of Domino’s in Iceland, do not despair. Viðskiptablaðið reports that Domino’s Pizza Group bought a 50% share in Pizza-Pizza ehf., the Icelandic company which operates Domino’s in Iceland, in 2016, then bought a greater stake in 2017, with the completion of the sale happening this year. Domino’s Pizza Group will now sell that ownership, and finding an Icelandic buyer is highly likely, therefore the franchise will likely remain in operation for the time being.
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