Why did Domino’s Pizza fail in Argentina? That’s the intriguing question many Argentinians ponder. Standing here today we’re not just looking at a building. We’re looking at a ghost story a business graveyard. Domino’s Pizza attempted to conquer the Argentinian market. It failed.
Domino’s like Pizza Hut tried to introduce its signature American-style pizza. This proved disastrous. Argentinians love their pizza. Their pizza is different. It boasts a thin crust a generous amount of cheese and a rich tomato sauce. Domino’s thicker crust and different cheese simply didn’t resonate with local tastes. It was simply too American.
The preference for local businesses played a significant role too. Argentina already had successful pizza chains. These chains like Kentucky or La Continental are Argentinian. They understood the local market. They understood what Argentinians wanted. This made it hard for an outsider like Domino’s to compete.
Price was another issue. Domino’s pizzas were more expensive than the competition. In their second attempt to gain a foothold in the Argentinian market they charged double the price. This proved a recipe for disaster. Who wants to pay double for a pizza that tastes different?
Some say Domino’s also picked the wrong time to enter the market. The 1980s and 1990s were not a time of great receptiveness to change. Today things might be different. Young people might be more adventurous in their tastes. Maybe a new attempt might be more successful. However for now Domino’s remains a distant memory. A cautionary tale of what happens when you ignore local tastes.
Think about that as we continue our tour. A simple pizza can tell a complex story. A story of culture economics and market forces. A story of Domino’s failed Argentinian dream.