Domino's Closed Stores Amid $134M Annual Loss
The pizza chain has signaled a pivot from aggressive growth toward unit profitability for its franchisees.
Updated on Sept. 26, 2026 in Openings & Closings
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Domino's Pizza Enterprises reported a $134.2 million annual loss and revealed plans to shutter 29 stores across Australia and New Zealand. The closures are part of a broader global strategy to cut 60 locations and prioritize long-term franchisee stability.
Why it matters
The move marks a departure from growth-at-any-cost tactics toward a focus on individual store profitability. For operators, this pivot highlights the rising pressure on margins that is forcing even major chains to prune underperforming assets.
Domino's Pizza Enterprises plans to close 29 stores across Australia and New Zealand, contributing to a total of 60 worldwide closures. This follows a reported $134.2 million loss in the past financial year.
The players
Domino's Pizza Enterprises
A major pizza restaurant chain currently restructuring its global footprint to improve franchisee profitability.
Liam Stops
A market manager overseeing 149 Domino's stores who previously held the record for the youngest franchisee in New Zealand.
The details
Under the new strategy, Domino's is refining its operational support for its 98 New Zealand franchisees. Market manager Liam Stops now oversees 149 stores, deploying five consultants to work directly with owners to address business challenges. This hands-on management approach seeks to move away from rapid expansion and instead solidify the performance of existing units.
Timeline
In 2013, Liam Stops purchased his first store with a $450,000 loan.
By 2020, Stops owned four stores in various towns.
In 2022, Stops sold his four stores.
In August 2026, the company announced its reset strategy.
The core event occurred in September 2026.
Market Landscape
The store closures follow a pattern set by the post-pandemic retail rationalization trend, where companies shed underperforming physical assets to protect margins. This shift reflects a wider industry pivot from rapid physical expansion toward stabilizing unit-level economics.
Operators should evaluate their own portfolios for low-margin units that require excessive support resources. Focus on identifying and fixing operational inefficiencies in underperforming locations before they become targets for consolidation.
The takeaway
Sustainable scaling requires prioritizing the health of individual units over top-line store count. Review your current unit-level profitability metrics to ensure each location contributes positively to your overall business margins.
Further reading
For more on industry shifts in location management, visit Openings & Closings.
Source note: This article includes information reported by NZ Herald.
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