A well-known pizza chain will close its locations in all of Kyiv’s shopping malls
The 1708 pizza chain has decided to close all of its locations in Kyiv’s shopping malls. The decision was prompted by a decline in the number of transactions in food courts and a drop in revenue due to air raid alerts.
Why the chain is leaving shopping malls
According to the co-founder, the chain initially viewed shopping malls as a way to quickly open new locations. However, starting in 2024, the number of transactions in food courts began to decline steadily.
By 2026, the chain had already exited Lavina Mall and Retroville, and Respublika Park was its last remaining location in Kyiv’s shopping malls.
“We agreed on a temporary relaxation of the lease terms, but while this article was being prepared, we made the decision to completely withdraw from all shopping malls in Kyiv,” Hnatiuk noted. At the same time, the store at Cherry Mall in Vyshneve remains the chain’s only location in a shopping center.
Meanwhile, due to the large number of air raid alerts, gross revenue at 1708’s locations in shopping centers could drop by up to 35%.
What’s Happening with Supplies
Hnatiuk does not consider the supply situation to be a problem. For each product line, 1708 has a primary and an alternative supplier.
However, due to logistics issues, manufacturers—particularly those of mozzarella and sauces—are changing their raw materials. As a result, the final product may change and does not always meet the chain’s requirements. In such cases, 1708 has returned large batches of products to manufacturers.
According to the chain’s preliminary estimates, food costs may rise by approximately 1.5–1.8% in September.
“We are already seeing price increases due to changes in logistics, high demand, and partial shortages. It is still difficult to accurately calculate the rise in production costs due to inventory levels, batch-based purchasing, and varying suppliers across cities,” noted Hnatiuk.
This was reported by Volodymyr Hnatiuk, co-founder and CEO of the 1708 pizza chain, in an interview with the Poster community “The Restaurateur Roars and Groans.”
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