Name: What Happened To Domino’s In Northern Europe?
Uploaded: 2021-04-21T09:44:21.000Z
Duration: 14 min 9 s
Description: Thousands of YouTube videos with English-Chinese subtitles! Now you can learn to understand native speakers, expand your vocabulary, and improve your pronunciation...

Iceland is a notoriously tough market for international fast food

McDonald's, Dunkin' Donuts and Burger King — they've all tried and

failed in Iceland. But there's one American fast food chain that

Icelanders are obsessed with — Domino's.

Of the three big international chains with significant presence in

Iceland, the pizza chain has the biggest market share in fast food by

far. Domino's also has a huge footprint for the small island nation.

There is a Domino's restaurant for every 14,000 people.

Its owner says Icelandic Domino's are some of the best performing

Domino's around the world by weekly sales.

So Domino's decided to try to expand into Iceland's neighbors.

In 1997, Domino's opened in Denmark and then in Norway and Sweden in

But other parts of Scandinavia just aren't buying what Domino's is

selling. In early 2019, Domino's Danish business went bankrupt and in

October of 2019, UK-based company Domino's Pizza Group, which owns

stores in Sweden, Iceland and Norway, announced it would exit those

markets. Its business there just isn't profitable.

And now the company is looking for a buyer.

And you know, I think the sale is a preferred option.

But if they don't find a buyer, you know, let's not forget these are

sort of sustained loss-making businesses.

They might not find a buyer for all of the markets, in which case

Closing those restaurants would be the last resort for Domino's Pizza

Group, considering the chain's track record of success in the UK and

other parts of Europe, why is it that Domino's failed to deliver in

Two Irish-American brothers Tom and James, Monaghan opened the first

Domino's in Michigan in 1960, and by 1967, Domino started opening

Domino's first international store opened in Canada in 1983, and as

of 2019 there are 16,500 Domino's in more than 85 countries.

And more than half of its sales come from outside of the U.S.

Domino's has spread around the world thanks to franchising.

The U.S.-based Domino's Pizza partners with master franchisees and

international markets who in turn can subfranchise.

The company looks for partners who have knowledge of the local

market. That model lowers the risk of entering international markets

for Domino's Pizza. Domino's presence in the Nordic region started in

The local operator thought it could do well in Denmark, too, where it

Domino's opened up shop in Norway in 2014 and expanded to Sweden in

late 2016. But the brand doesn't have a presence in Finland.

The business in Denmark went bankrupt after a TV network exposed poor

hygiene and expired food at the restaurant.

Another franchisee, Australian company Domino's Pizza Enterprises,

million dollars to buy stores in April 2019.

The Australian company now operates in six European locations, plus

Of all those European markets, Domino's Iceland is a standout.

Its owner says restaurants there have clocked higher average weekly

sales than any other Domino's on the planet.

But Iceland can't prop up the entire bloc.

In the first half of fiscal year 2019, Domino's Pizza Group's

international markets, which includes Norway, Sweden and Iceland, had

In fiscal year 2018, Sweden had the lowest average weekly sales per

store for Domino's Pizza Group in the Nordics.

Based on Domino's success in Iceland, the chain seemed poised to work

The Nordic bloc is a region of northern Europe that includes Denmark,

Norway, Sweden, Finland and Iceland and their associated territories

like Greenland. They're all independent countries, but they share key

things in common. The Nordic economic model has strong labor unions,

high taxes and provide services like education and healthcare, making

But the five Nordic countries are also wealthy.

Their GDP per capita, a metric that breaks down the country's GDP per

person, ranks within the top 10 in Europe.

The Nordic countries take pride in their culinary traditions.

After a period of industrial food production that brought processed

food to the Nordics, in the early 2000s there is a shift toward more

Eating habits in the Nordic countries put strong emphasis on families

Responses to a survey conducted in 1997 and then again in 2012 showed

that family meals hadn't decreased in Nordic homes, despite the fears

that introduction of fast food in the 1990s would drastically reduce

the number of families opting to eat at home.

In the Nordic countries, health and wellness are also important

values. A survey of Nordic people predicted that some of the biggest

Nordic food trends in 2019 will be meat free proteins, holistic diets

Nordic consumers haven't embraced global fast food chains as fully as

other countries, and when they do opt to eat on the go, more often

than not, they're opting for local chains rather than global fast

food restaurants. Consumers tend to prefer local chains for a couple

of different reasons. Part of it has to do with loyalty and trust.

In both Sweden and Norway, global brands have a stigma of being

unethical and consumers perceive them to be prioritizing profits

above all else as opposed to local brands.

these two countries are quite interesting because they have very,

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What Happened To Domino’s In Northern Europe?

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