Domino’s Pizza faced a decrease in order volume last year attributed to reduced consumer confidence and higher labor expenses. To counter these challenges, the company implemented price increases. Presently, a large pizza on the Domino’s website is priced at £25.99, but customers can avail of a discounted rate of £14 through the ‘Price Slice’ deal.
Despite these setbacks, Domino’s is optimistic about 2026, citing the introduction of its new chicken sub-brand as a potential growth driver. The company, with around 1,400 outlets in the UK and Ireland, processed 71.1 million orders in the region last year, marking a 0.9% decline from the previous year. However, the group’s underlying pre-tax profit fell by 15% to £91.2 million.
System sales, which combine revenues from franchised and company-owned stores, rose by 1.5% year-on-year to £1.6 billion. This growth was fueled by a 4% price hike, even as sales volume dipped by 2.5%. Domino’s franchisees raised prices in response to increased employment taxes, including higher national insurance contributions.
Nicola Frampton, Domino’s interim chief executive, acknowledged the challenging conditions of 2025, attributing the order decline to weakened consumer confidence. She highlighted the necessity of price adjustments due to incremental costs related to employment changes and escalating national minimum wage rates.
Looking ahead, the company plans to mitigate upcoming challenges such as the April minimum wage hike through enhanced staff scheduling, AI-driven demand forecasting, and leveraging decreasing food price inflation.
Frampton assumed the CEO role after the previous chief, Andrew Rennie, departed, stating that the UK pizza market was nearing saturation. Domino’s launched its Chick ‘N’ Dip sub-brand to tap into the growing demand for chicken in Britain, expanding it nationwide.
Regarding future growth strategies, Frampton confirmed that the idea of acquiring a second brand had been shelved, as the success of Chick ‘N’ Dip demonstrated the company’s ability to access the expanding chicken market without additional acquisitions.
In expansion efforts, Domino’s opened 31 new outlets in 2025 and aims to replicate this expansion in 2026, signaling confidence in its business trajectory. The company is also responding to health-conscious consumer preferences by diversifying its menu to offer lighter and lower-calorie options.
Following these developments, Domino’s shares saw a 5% uptick on Tuesday.