He quit is position at the beginning of the year and did not provide further information about the decision of the group to exit Romania. The Polish group did not return ZF’s call for comment.
Pizza Dominium had grown to ten restaurants at its peak, most of which in Bucharest. The business stood at almost 10 million lei (EUR2.2 million) in 2016, the best year for the group in terms of revenue in Romania. Last year, sales shrunk by about 20% and losses widened to RON1 million, four times the 2016 level. This was the first year in the red for the Polish group that had arrived in the country more than a decade earlier.
Pizza Dominium entered Romania in 2007 when it opened a standalone restaurant in the Obor area in Bucharest. It then expanded with both standalone restaurants and in shopping centers.
A year ago, Dan Grigorescu said in an interview that that particular restaurant had been closed after ten years in business when the lease expired. He said the reason was the high rent for street front spaces, which only pharmacy chains and casinos can afford to pay. Rent may account for as much as 30% of the sales, which is not sustainable, he added at the time. The restructuring of the business in Romania was already in progress at the time, and the restaurant in the Obor area was the last standalone restaurant the group had.
Pizza Dominium’s competition on the local market was Pizza Hut and Domino’s, as well as small neighborhood businesses.
(English version by Loredana Fratila-Cristescu)