Domino’s to slow expansion in Germany

Domino’s to slow expansion in GermanyUS pizza chain, Domino's Pizza Group has indicated that it will slow down its expansion in Germany after the company recorded a loss in the country.

The company lost £3.2million from its 25 stores in Germany during the previous six years and also wrote down £11 million from the value of its operations in the country. Due to the write down in Germany, the global pizza giant's profits fell 46 per cent to £11.6million during the first six months of the year.

Chief executive Lance Batchelor has said that he will slow down the expansion plans in Germany and it will open around 12 stores this year, from an expected 18It said that German operations are not expected to break even until
2016 or 2017 after the company decided to follow slower expansion plans in the country.

Domino's Pizza Group has seen its shares fell on the stock market after the company recorded a loss form its German operations. The performance has been affected due to slow performance of company owned stores and rising training costs in the European country. The company is planning to convert its company-owned stores into franchises as they are performing better in the country.