Global pizza brands Domino's and Papa John's are preparing an assault on Russia's provinces, betting they can turn a profit far from Moscow as online card payments become more widespread and consumers get to know foreign brands better. While stay-at-home Muscovites can order an array of international pizza brands from Sbarro to Domino's to Papa John's, regional cities such as Rostov-on-Don and Nizhny Novgorod are still chiefly the preserve of small local chains.
Multiple challenges have kept global fast food brands wedded to major Russian cities, including patchy transport links, bureaucratic delays, finding an army of chefs who can maintain quality, as well as the sheer cost of shipping often perishable ingredients across a vast country that spans 11 time zones. Western fast food chains have also had to adapt menus to suit Russian palates better, once the allure of new foreign tastes has worn off. But Domino's Pizza's Russian franchisee, DP Eurasia , believes the time is now right to expand beyond Moscow, where sales at the 76 outlets it had at the end of March are far outstripping growth in its main market Turkey.
Like-for-like sales in Russia have risen 30.1 percent this year up to May 21, whereas the comparable figure for Turkey was 6.3 percent growth. Güvenç Dönmez, DP Eurasia's Russian head, said he saw room for 1,500 Domino's outlets in the longer term. Domino's closest rival is not standing idle. The Russian franchise of U.S. chain Papa John's International Inc, the fourth biggest player in the country in 2016, sees room for 60-80 store openings each year over the next five years. Another U.S. brand Sbarro was the market leader with a 4 percent market share in 2016. "Russia is a huge market and is still very underpenetrated. You don't have many options to eat," Dönmez said in an interview with Reuters TV.
Please click to read our informative text prepared pursuant to the Law on the Protection of Personal Data No. 6698 and to get information about the cookies used on our website in accordance with the relevant legislation.
6698 sayılı Kişisel Verilerin Korunması Kanunu uyarınca hazırlanmış aydınlatma metnimizi okumak ve sitemizde ilgili mevzuata uygun olarak kullanılan çerezlerle ilgili bilgi almak için lütfen tıklayınız.