A plus turned into a minus: June 2019 saw established Dodo pizzerias in Russia (those over two years old) lose sales year-over-year—by 0.9% compared with June 2018. This is a big change when you consider that our older pizza shops used to grow annually without fail by 30−40% up until a year ago.
We could easily console ourselves. We could point out, for example, that 2018 was the year of the FIFA World Cup in Russia. We could even add that we had launched, quite successfully, our first national TV ad campaign right before the World Cup. Nowhere left to grow, surely!
But the revenue dynamics of our older pizzerias are a crucial metric of the current condition of our business. And growth has been slowing down since September 2018. Delusion and covering up mistakes aren't a part of Dodo's guidelines.
We understand now that it's time to do something, so we have developed a new strategy for the Russian market
that will make Dodo's delivery service more accessible
and our restaurants more competitive
. We have also changed our working practices, so that blunders like these can never happen again.