Domino’s closing all outlets in Russia

Domino’s Pizza announced it is closing all of its outlets in Russia, becoming the latest Western company to pull out of the country since it invaded Ukraine last year. 

DP Eurasia, the master franchisee of the Domino’s Pizza brand in Russia, said Monday it is filing for bankruptcy for its Russian entity, DPRussia. 

DP Eurasia said this follows an evaluation of the company’s Russian unit, including its presence in the country, “the impact of sanctions and its continuing ability to serve its customers in Russia.” 

The company said the decision to file for bankruptcy comes after it attempted to sell DPRussia.

“With the increasingly challenging environment, DPRussia’s immediate holding company is now compelled to take this step, which will bring about the termination of the attempted sale process of DPRussia as a going concern and, inevitably, the Group’s presence in Russia,” it said. “A bankruptcy petition of DPRussia will be filed in accordance with the relevant statutory requirements in due course.”

In March 2022, soon after Russia’s invasion of Ukraine in late February, DPRussia suspended royalty payments from Russia, though the outlets in the country remained open. The company has 142 stores in Russia, along with locations in Turkey, Azerbaijan and Georgia. 

A series of Western companies have chosen to suspend or completely withdraw operations in Russia amid the war in Ukraine. According to a database from Yale University, more than 1,000 companies have publicly announced they are voluntarily curtailing operations in Russia beyond the legally required international sanctions.

Other large U.S. franchises that have taken such action include McDonald’s and Starbucks, which have completely withdrawn from Russia. Other companies, such as Apple and FedEx, have suspended operations in the country.