Domino’s to Shut Down All Stores in Russia

In a significant move, Domino’s Pizza has announced the closure of all its outlets in Russia. This decision comes as more Western companies withdraw from the country following its invasion of Ukraine last year.

The franchisee of Domino’s Pizza in Russia, DP Eurasia, released a statement on Monday stating that it will file for bankruptcy for its Russian entity, DPRussia. This decision follows a thorough evaluation of the company’s presence in the country, considering the impact of sanctions and its ability to serve customers in Russia.

DP Eurasia further revealed that it had attempted to sell DPRussia before resorting to bankruptcy. However, due to the increasingly challenging environment, the immediate holding company of DPRussia has decided to take this step, leading to the termination of the attempted sale process and ultimately Domino’s Pizza’s presence in Russia. A bankruptcy petition will be filed in accordance with the relevant statutory requirements.

Back in March 2022, immediately after Russia’s invasion of Ukraine, DPRussia suspended royalty payments from Russia while continuing to operate its outlets. With 142 stores in Russia, as well as locations in Turkey, Azerbaijan, and Georgia, Domino’s Pizza has a significant presence in the region.

This move by Domino’s Pizza is part of a trend among Western companies to suspend or withdraw operations in Russia due to the ongoing war in Ukraine. According to a database from Yale University, over 1,000 companies have publicly announced their voluntary curtailing of operations in Russia beyond the legally required international sanctions.

McDonald’s and Starbucks are among the major American franchises that have completely withdrawn from Russia, while companies like Apple and FedEx have suspended their operations in the country.