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Donatos closes stores in Michigan

November 24, 2002

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GRAND RAPIDS, Mich. -- Donatos Pizzeria closed all five of its Michigan stores on Nov. 21.

This is the second market closure in a week for the Columbus, Ohio, pizza chain, which closed 23 stores in Atlanta on Nov. 19. Earlier this year, Donatos closed six stores in the Cincinnati market.

According to an Associated Press report, the Michigan closures were in Holland, Muskegon and the Grand Rapids area. Poor sales numbers were blamed.

Donatos wants to open more stand-alone units with dine-in service, delivery and a drive-through lane, but the company hasn't said where it will locate those units.

Donatos' parent company, McDonald's, also is closing multiple U.S. hamburger units due to sluggish sales.

A Dow Jones Newswires story published late on Nov. 22 reported that in 2002 alone, Pizza Hut has closed a total of 79 U.S. stores and Domino's Pizza had closed 40 sites.

A recent SEC filing from Sbarro Inc. reported the pizza and pasta chain's third-quarter '02 sales declined 5.9 percent, and that it has closed 55 of its 900-plus stores this year.