Italians preferred local restaurants over the American version when it came to Domino's Pizza Inc.
Domino's opened its first branch in the country seven years ago. It ran out of cash and fell behind on its debt obligations after facing stiff competition from local restaurants expanding delivery services during the Pandemic and sought protection from its debts.
The US chain entered Italy through a franchising agreement with ePizza SpA and planned to differentiate itself by providing a structured national delivery service along with American-style pizza.
Its ambitious expansion ran into trouble as traditional pizza makers scaled up deliveries or signed deals with third-party services.
ePizza said in a report to investors that the issue was due to the increased level of competition in the food delivery market with both organized chains and'mom and pop' restaurants delivering food.
US and Italian representatives for Domino's didn't reply to messages. Domino's locations in Italy did not respond to calls. From its peak in 2020, the company reduced operations in the country and stopped delivering from its website.
The chain's Italian social-media channels were used by some of its customers who were surprised by the store's closing.
The April tribunal in Milan granted the company court protection against their debts for 90 days. The measures prevented companies from being taken over by their lenders. According to the Italian Chamber of Commerce, there has been no new information on the court process.
At the end of 2020, the company had over 10 million euros in debt.
Luca Casiraghi helped with the project.
All Rights Reserved © 2024
