Domino’s Pizza bets massive on new hen vary to beat client squeeze

Domino’s Pizza is pinning its hopes on its new range of chicken products to beat a consumer squeeze that put a dent in its annual profits.  

The UK master franchise of the US pizza giant said that a ‘challenging consumer backdrop’ persisted throughout 2025 as profits fell 35 per cent to £81.1m for the year to 28 December.

The group’s interim boss Nicola Frampton said that 2025 had been a ‘difficult year for all’ and admitted her franchisees had been forced to raise prices.

She blamed government policy, including an increase in the National Minimum Wage and employer contributions to National Insurance, which came into effect in April last year.

Frampton described these increases as ‘some significant incremental cost flow’ and said as a result ‘a lot of brands have really pulled back – they’ve either put their prices up massively or they’ve pulled back on their service.’

Domino’s is pinning its hopes on its ‘Chick n Dip’ range to match rising consumer demand

These added pressures resulted in Domino’s slashing its guidance in August last year.

Total orders fell 0.9 per cent last year compared to 2024, driven by a 1.7 per cent fall in delivery orders due to a ‘weaker market’ in the second half of the year.

And fresh storm clouds are gathering over consumer sentiment as the Middle East conflict stokes inflation and energy bill fears. 

Frampton said its new fried chicken range would help to ‘drive sustainable growth’. Among its new products is its ‘Chick ‘n’ Dip’ range, which it said was meeting ‘rising consumer demand for chicken and expands Domino’s relevance’. 

Consumers are eyeing products that are high in protein and lower in calories. Food brands, including Greggs, have suggested that the rise of weight-loss drugs is also increasingly influencing what people are buying.

It comes after the business’s former boss raised eyebrows for suggesting there was not ‘massive growth’ left in the pizza market in Britain. 

AJ Bell investment director Russ Mould said: ‘These results signal a business in a state of flux. 

‘Consumer tastes are changing, both in terms of what they eat and portion size. A greasy slice of pizza no longer cuts the mustard for health-conscious individuals, so Domino’s is having to adapt to survive.’

He said the group was ‘running hard just to stand still’ despite having millions of customers who order more than four times a year on average.

Domino’s, which now runs 1,400 outlets in the UK, is on a mission to reassure investors after its share price has plunged almost 35 per cent over the past year.

And it is still hunting for a permanent boss after former chief executive Andrew Rennie stepped down in November last year in a shock move.It is up 2 per cent off the back of today’s results.