Domino's Pizza May Be The Next Chain To Exit Russia
Visitors and residents of Russia may need to hurry up if they want to order one of Domino's unique pizzas, like the Caramel Pineapple, Chicken Cordon Blue, or Pear Blue Cheese currently featured on the pizza chain's Russian website. Russia's attacks on the sovereign nation Ukraine have gotten worldwide attention and caused several companies to reconsider doing business there. In fact, Yale University's School of Management said that as of December 20, 2022, more than a thousand companies had ceased their operations in Russia due to the Ukrainian invasion.
Some fast food companies like McDonalds have pulled out of Russia entirely, opting to sell the Russian arm of its business because continuing to operate in the country was not "consistent with McDonald's values," a representative told The Guardian. Other food companies, like Carl's Jr, Sbarro Pizza, and TGI Friday's, have continued to operate as usual in Russia, according to Yale University's list. Still, several food companies like Domino's Pizza, Barilla, Campari, and Hard Rock Café (among others) are on Yale's list of "Companies postponing future planned investment/development/marketing while continuing substantive business." However, Domino's may soon strike themselves from this list.
Domino's Pizza is considering pulling out of Russia
Shortly after Russia invaded Ukraine in February of 2022, DP Eurasia, owner of Russia's Domino's Pizza franchise, announced that it would "suspend royalty payments from the Russian business and limit investment in the country," according to BBC News. Since then, 171 Domino's locations have continued to operate, though on Wednesday, December 28, 2022, the company said it is "considering various options which may include a divestment of its Russian operations."
DP Eurasia's statement made it clear that no outcome is certain and that it will issue an update "as and when appropriate," according to Business Insider. Until an official announcement is made, it remains to be seen whether Domino's Pizza will join companies like McDonald's, Starbucks, KFC, and Pizza Hut, that have already halted operations in Russia. Business Insider notes that Domino's Pizza, based on the number of stores, is the third largest pizza takeout and delivery business in Russia, and sales in the country amounted to $47.7 million in 2022 through the end of October.