U.S. Pizza brands want slice of Russian hinterland

International pizza brands Papa John’s and Domino’s are looking to invade regions of Russia hitherto unserved by big chain franchises. Online card payments and improved brand recognition have persuaded brands such as these to expand beyond the known markets in Moscow, where Western franchises have established a strong foothold. DP Eurasia, Domino’s Pizza’s Russian franchisee, believes that such expansion will work.

DP Eurasia’s head of Russian development Elena Ivanova said “The company has done its own research and realised that there’s almost no quality pizza in the regions, which gives us enormous ground for development.”

Despite Domino’s being Russia’s third-largest pizza chain last year, its market share was less than 2 percent, recorded Euromonitor International. Christopher Wynne, the chief executive of Papa John’s franchisee, told Reuters “We still see potential in Moscow. I think we could open a further 40-50 stores there, but we are also embarking on an aggressive expansion to small towns.”