10 votes

Domino's Pizza will pull out of three Nordic countries and Switzerland after sustaining significant losses

4 comments

  1. [2]
    iiv
    Link
    This is most likely because of the pizza culture in the Nordics (at least in Sweden's case). Independent pizzerias are very common. Like, ridiculously common. My small town of 5000 has four...

    This is most likely because of the pizza culture in the Nordics (at least in Sweden's case). Independent pizzerias are very common. Like, ridiculously common. My small town of 5000 has four pizzerias, and in larger cities there's a pizzeria on nearly every block. The vast majority of all pizzerias are independent and owned by an Arab or Turkish immigrants. It's pretty difficult to break into a market like that.

    9 votes
    1. Greg
      Link Parent
      I've also noticed that US fast food chains normally end up way more expensive in Europe, which changes the value proposition significantly. A quick search suggests that a large cheese pizza from...

      I've also noticed that US fast food chains normally end up way more expensive in Europe, which changes the value proposition significantly. A quick search suggests that a large cheese pizza from Dominos is currently $9.99 in the US but £15.99 ($20.55) in the UK, for example, and the quality is no better - meanwhile, exactly as you say, there are independent places everywhere that'll do an extra large pizza with any 3 toppings for under a tenner.

      Sure, most of the costs of doing business are higher here, but I get the impression they're trying to increase prices until they maintain the same percentage margins they get in the US without taking enough account of the local competition.

      6 votes
  2. [2]
    Gaywallet
    Link
    is it weird that on first pass this read to me like a headline about the state of affairs of a war?

    is it weird that on first pass this read to me like a headline about the state of affairs of a war?

    7 votes
    1. mycketforvirrad
      Link Parent
      Wait until Pizza Hut takes advantage of the inevitable power vacuum that comes with Domino's withdrawal of their forces.

      Wait until Pizza Hut takes advantage of the inevitable power vacuum that comes with Domino's withdrawal of their forces.

      12 votes