STRATEGIC PARTNERS
October 18, 2019
Pizza action in the U.K. this week, includes some pullback from European expansion by Domino's in the U.K. and extra vegan offerings at its rival, Pizza Hut UK.
In London, CNN reported that Domino's UK franchise will now not expand into Switzerland, Norway, Sweden and Iceland following poor returns at the brand's stores already in those areas. Domino's Pizza Group (DMPZF) said it's seeking a purchaser for its 100-plus stores in the four nations, returning the U.K. group's focus to Ireland and the U.K.
The decision was met enthusiastically by investors who pushed shares in the U.K. company up over 5% following reported losses of $8.2 million in the first part of this year. That compares with a $2.3 million loss for the properties the first half of 2018, clearly indicating the stores are struggling to find customers.
Meanwhile, at competitor Pizza Hut UK, vegan fare is the name of the game as the brand there added plant-based pizza, vegan nuggets and dairy-free cheesecake to appease its diners who prefer their fare animal product free, along with flexitarians who want to occasionally dabble in such offerings.
The chain's U.K. properties now offer a total of five vegan pizza options with the launch most recently of its Vegan All About Mushrooms Pizza, with closed cup and garlic mushrooms, tomato sauce and vegan cheese, according to U.K.-based Livekindly.co.
The brand's stores there also are offering Quorn's meat-free Southern Fried Nuggets and vegan "I Can't Believe it's Not Cheesecake."
