Domino’s largest global master franchisee is closing more than 200 storesDomino’s largest global master franchisee is closing more than 200 stores

Domino’s Pizza Enterprises — the largest global master franchisee of the Ann Arbor, Mich.-based pizza chain, which owns 18% of Domino’s stores — is closing 205 restaurants , the franchisee said in a company update last week. The majority (172) of these “loss-making” stores are in Japan, and according to DPE, are closing in order “to sharpen market focus and improve profitability” of the overall portfolio.

These store closures are the result of Domino’s Pizza Enterprises’ operational review to improve long-term profitability and shareholder profits. Many of the affected stores were opened during the sales surge of the COVID-19 pandemic but have since struggled in the aftermath of decreased demand, DPE confirmed.

"When I started in this role three months ago, I said we would move decisively to reshape our business for long-term success,” DPE group CEO and managing director, Mark van Dyck, said. “Where change is required, we are acting quickly and transparently. Our priority remains clear—creating value for customers, franchise partners, and shareholders."

During a previous quarterly earnings call in July of last year, Domino’s CEO Russell Weiner said the company had readjusted its net store growth target for international by about 175 to 275 stores, “primarily as a result of challenges in both openings and closures faced by Domino's Pizza Enterprises.”

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A couple of months later, Domino’s shareholders sued the pizza company over allegedly misleading growth guidance made during Domino’s 2023 Investor Day, specifically about the financial challenges facing Domino’s Pizza Enterprises.

Following DPE’s store closures in Japan (58 franchised, 114 corporate), the franchisee said it would “focus on prefectures where the company can leverage scale, brand strength, and operational efficiencies.”

The company, however, will not be shifting its focus away from the Japanese market, despite this wave of closures.

“Japan is an attractive market for quick-service restaurants and pizza, with significant long-term upside for Domino’s,” van Dyck said. “We are committed to being disciplined in expansion—prioritizing locations in high density prefectures where we can drive incremental, profitable growth.”

Contact Joanna at [email protected]