Domino's Pizza Faces Order Slump as Prices Soar to £26
Domino's Pizza has reported a significant decline in order numbers over the past year, attributing the drop to weakened consumer confidence and escalating labour costs. In response, the pizza delivery giant has implemented price increases, with a large pizza now costing £25.99 on its website. However, customers can still access discounted options through the chain's 'Price Slice' deal, which offers a large pizza for £14.
A Challenging Year for the Pizza Chain
Interim chief executive Nicola Frampton described 2025 as a "difficult year for all," highlighting how faltering consumer sentiment has negatively impacted order figures. The company, which operates approximately 1,400 outlets across the UK and Ireland, processed 71.1 million orders in the region last year—a decrease of 0.9% compared to the previous 12 months. This decline contributed to a 15% fall in underlying pre-tax profit, which dropped to £91.2 million.
Despite the order slump, system sales—which combine revenues from franchised and company-owned stores—rose by 1.5% year-on-year to £1.6 billion. This increase was driven primarily by a 4% price hike, as sales volume actually declined by 2.5%. Franchisees raised prices in 2025 to counter higher employment taxes, including increased national insurance contributions and rises in the national minimum wage.
Strategic Adjustments and Future Outlook
Ms Frampton acknowledged upcoming challenges, such as another minimum wage increase in April and changes under the Employment Rights Act affecting staff hours. To mitigate these costs, Domino's plans to leverage artificial intelligence for smarter staff rostering and demand prediction, while also benefiting from moderating food price inflation throughout the year.
The company has shifted its growth strategy under Ms Frampton's leadership. Former boss Andrew Rennie had suggested the UK pizza market was nearing saturation, but Domino's is now focusing on internal innovation rather than acquiring another brand. This change in direction follows the successful launch of the Chick 'N' Dip sub-brand, which capitalises on Britain's growing appetite for chicken and has expanded to all locations nationwide.
Expansion and Consumer Trends
In 2025, Domino's opened 31 new outlets and aims for a similar number in 2026, demonstrating confidence in its long-term prospects. The chain is also adapting to health-conscious consumers by expanding its menu to include lighter portions and lower-calorie options. Despite the recent challenges, Domino's shares saw a boost of approximately 5% on Tuesday, reflecting some investor optimism.
Ms Frampton emphasised that the company has found a balance in navigating economic pressures, avoiding extreme price hikes or service reductions seen in other brands. With these strategic adjustments, Domino's remains hopeful for a stronger performance in 2026, supported by its new initiatives and operational efficiencies.
