America’s popular pizza chain Domino’s is stepping up their game in Germany, a country which it already had a leading presence in, by announcing that it would be eating up its strongest competition in the country with the buyout of Germany’s own local favorite Hallo Pizza and its 170 stores.
Hallo Pizza is Germany’s largest independent pizza chain and is the only brand in the country that was giving Domino’s a solid run for its money. While Domino’s had remained the largest in store count with 209 locations, Hallo Pizza wasn’t far behind with its 170. The competitors who trail behind the two leading brands don’t come close to posing a real threat.
So instead of the two leading brands dueling it out at the top, Domino’s Australian franchise (Domino’s Pizza Enterprises – DPE), which owns the rights to the brand in Germany, decided to make it easy and acquire the company for 32 million euros ($38 million) to make it an unbeatable force in the German pizza scene.
“The acquisition of Hallo Pizza strengthens our leading market position and assists DPE to accelerate towards achieving its target of operating 1,000 stores in Germany,” Managing Director and Group CEO for DPE, Don Meij said in his statement announcing the acquisition. “We are excited to share our innovations with Hallo Pizza franchisees to drive the customer experience and higher sales under the Domino’s system.”
Most of Hallo Pizza’s existing locations are expected to remain under the new Domino’s franchise, with only 45 stores having their fate threatened due to their proximity to already existing Domino’s locations. The transition is expected to take place periodically with the final Hallo Pizza locations being converted by the end of 2018.