Domino's UK franchise quit the Nordics: 37.6% share in Iceland, losses next door

In October 2019 Domino's Pizza Group, the UK-based franchise operator of Domino's in Iceland, Norway and Sweden, announced it would exit all three countries. CEO David Wild told analysts the markets were attractive but 'we are not the best owners of the businesses'; Norway and Sweden had not been profitable and sat at different stages of development.

The piece, published 14 January 2020, explains the split outcome: Iceland was a rare win, with Domino's holding 37.6% of the country's fast-food market according to Meniga, while in Sweden and Norway the chain struggled. High labour costs, weakening economic conditions in Northern Europe and growing competition for a small delivery market weighed on performance.

Citi Research's Natasha Brilliant called them 'sustained loss-making businesses' and warned that if buyers could not be found for all the markets, Domino's would 'simply have to close them down'. Analysts said the chains' Nordic future was uncertain. No final sale or closure figures are given.

Sustained loss-making businesses put up for sale; Citi's analyst warned they 'might not find a buyer for all of the markets' and could simply close

The UK operator applied a franchise formula to markets whose wage and delivery economics could not carry it.

Iceland proved the brand could win in the Nordics — which made the sustained Swedish and Norwegian losses a strategy failure, not a demand verdict.

A small delivery market under growing competition left no room to amortise the cost base the group had built.

Announcing the exit as 'not the best owners' put loss-making operations on the block in a market with few strategic buyers.

Market share in one country doesn't transfer next door — the Nordic delivery economics never matched the UK playbook.

As of 14 January 2020 the three-market exit was announced but not completed, with analysts warning some operations might simply have to close. No disposal outcome is reported.