Domino's Pizza Enterprises, headquartered in Australia, said Friday that it will close 205 unprofitable outlets worldwide, including 172 in Japan.
The global delivery pizza chain will prioritize investments in areas that will help it improve earnings.
Currently, there are about 1,000 Domino's Pizza outlets in Japan, operated by Domino's Pizza Japan. Most of the outlets to be closed were opened in response to a surge in demand during the COVID-19 pandemic, but have since been pressured by declining demand and rising costs.
The pizza chain expects the closures in Japan and elsewhere to reduce annual costs by 15.5 million Australian dollars, or about ¥1.5 billion.
While the pizza chain was born in the United States, the Australian company has expanded the business in Asia, Oceania and Europe under franchise agreements.
The group's CEO, Mark van Dyck, emphasized that it will restructure the business for long-term success.
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