Domino's Opens Its First Store in the Czech Republic in Master Franchise Deal
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Domino's Opens Its First Store in the Czech Republic in Master Franchise Deal

Domino's Opens Its First Store in the Czech Republic in Master Franchise Deal

Domino's Pizza, which operates in more than 85 markets worldwide and earns more than half of its global retail sales from international stores, has opened its first restaurant in the Czech Republic, in Brno. With a population of about 800,000, Brno is the country's third-largest city after Prague and Ostrava.

The master franchisee is Daufood Czech Republic. "I am so proud of the team that helped bring the global Domino's brand to the Czech Republic," said Jose Marti, CEO of Daufood in the announcement.

The first location is in the Vinohrady area of Brno, and features the brand's new pizza theater design. A second location will be opening in Brno's city center, with additional locations planned for next year.

According to export.gov - the part of the U.S. Department of Commerce's International Trade Administration that helps U.S. companies with international sales - the Czech Republic is a good place to consider for global expansion by U.S. franchise brands:

"Franchising has become a well-known, successful, and popular concept in the Czech market and is poised for further growth. After a rather moderate start in the 1990s, franchising grew rapidly, especially after the Czech Republic's accession to the EU in 2004. Czechs have seen the success of the foreign franchising systems and have started to establish domestic franchising concepts and to expand abroad.

"According to the portal Franchising.cz (not available in English), in 2017 there were more than 260 fully functional franchised brands and 30 new brands about to be launched in the Czech Republic. It is expected that the total number of international and Czech brands will reach 300 by 2020. In 2017, the number of foreign brands was estimated to be 98, which represented a 27 percent market share. The Czech market for food franchises dominates with 15 percent of the market, but it has slowed down and other franchise opportunities are expected to grow in the future. The Czech legal system places no barriers to entry and operation of a franchise."

Published: December 10th, 2019

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