4 Signs Domino's Is Struggling

Even New Yorkers love Domino's Pizza, which demonstrates that this iconic global chain knows a thing or two about creating an excellent pie. Originating in Ypsilanti, Michigan back in 1960, Domino's is a beloved brand all over the world thanks to its reliable menu items and reasonable prices. Despite its favorable reputation, however, we've uncovered some signs that the restaurant is currently struggling, both at home in the U.S. and elsewhere in the world, including Japan and Australia. Digital delivery apps have changed the way people order food and have even taken a bite out of the pizza delivery market, which decelerated sales growth for major chains like Little Caesars and Pizza Hut, as well as Domino's.

We want to emphasize that Domino's doesn't appear to be going away any time soon, but the chain has faced some serious challenges as of late. Store closures, lagging sales throughout international markets and the U.S., and a lack of customers have all conspired to dull Domino's shine in this exceedingly tumultuous economic time. It's worth noting that Papa John's and other once-struggling pizza chains have launched unexpected comebacks, so pizza-loving consumers shouldn't count Domino's out just yet. 

Domino's has a surprisingly large international market, and Australia-based franchisee Domino's Pizza Enterprises controls the restaurant's operations in numerous countries outside the U.S., including the Netherlands, Malaysia, Germany, Singapore, and Japan, among others. In an attempt to prevent less lucrative locations from dragging down the chain's success, Domino's largest franchisee plans to enact sweeping closures involving 205 restaurants, 172 of which are located in Japan. Lest you think that means the country will no longer have access to the pizza chain, think again. Even with the underperforming locations subtracted, Japan can still boast a whopping 778 Domino's locations.

As reported by Nation's Restaurant News, Mark van Dyck (CEO and managing director of Domino's Pizza Enterprises) believes Japan has much to offer the chain, stating, "Japan is an attractive market for quick-service restaurants and pizza." To better capitalize on the opportunities available in the country, van Dyck says the closures enable Domino's to implement a new strategy that will involve "prioritizing locations in high density prefectures where we can drive incremental, profitable growth." It's no secret that Japan has a love for American-style fast food fare, as illustrated by the country's Christmastime obsession with KFC.

Store closures in Japan aren't the only problem plaguing Domino's Pizza Enterprises. The massive Australia-based franchise operator also encountered issues with lackluster same-store sales in early 2025, which caused shareholder confidence to falter. For those unfamiliar with corporate lingo, same-store sales refers to the total money earned by all stores that have been in business for one year or longer. Multiple factors were cited in the decreased sales figures, with the Asian market in particular being impacted by things like supply chain problems and geopolitical issues.

While sales were indeed disappointing, this franchisee actually experienced sales growth of 1.5%. However, this figure fell short of the projected 4.3% growth rate, which led to a sharp decrease of Domino's Pizza Enterprises shares earlier in 2025 (via Reuters). The franchise operator's financial challenges were also a factor in a class action lawsuit filed in 2024, when Domino's shareholders alleged that the company used false information to obfuscate Domino's Pizza Enterprises financial standing, which was not as sturdy as purported to be during Investor Day 2023.

Domino's can't seem to catch a break when it comes to disappointing sales figures. Much like other markets throughout the world, Domino's same-store sales within the U.S. grew by a meager 0.4% in the fourth quarter of 2024, while growth was projected to total 1.63% (via TheStreet). Upon crunching the numbers, the pizza chain found that delivery rates went down, unlike rates for carryout customers, which actually increased. It's believed this fluctuation was caused by mounting consumer concerns about money, which may be spurring people to avoid delivery and its associated fees.

Domino's is employing a novel approach to this problem by way of its impending partnership with DoorDash, as customers will be able to access the pizza chain via the delivery app beginning May 2025 (though a few test markets already have access). Orders will be carried out by delivery drivers already working at the chain, as opposed to other restaurants that rely on DoorDash's network of drivers. The hope is that this partnership will introduce Domino's to a new segment of consumers who are already accustomed to ordering from the app and are okay with paying added fees.

Pizza Hut is often considered the vanguard of stuffed crust pizza, as the chain has been offering this cheesy pie to its customers since 1995. Domino's has recently gotten in on the action itself thanks to the debut of its parmesan stuffed crust pizza, which was added to the menu as a strategic maneuver to increase business at the chain. As reported by CNN Business, Domino's cited internal research showing that its lack of a cheesy crust option was responsible for a loss of 13 million customers, who were presumably forced to look elsewhere to meet their need for maximum cheesiness.

It's hard to gauge just how accurate this claim is, as Domino's didn't explain how it conducted its research. For some insight, Pizza Hut conducted its own customer survey in 2024 and found that the chain's thin crust pizza was the most popular selection with 29% of the vote, while stuffed crust came in second place with 24%. This indicates that while stuffed crust is a popular selection, only time will tell whether the addition has a meaningful impact for Domino's. As for the new stuffed crust pizza, Domino's customers can expect dough flavored with garlic seasoning and parmesan and filled to the brim with mozzarella cheese.