Domino’s Reports Decline in Customer Orders Despite Revenue Growth from Price Increases
The popular pizza delivery company Domino’s experienced a decrease in customer orders throughout the past year, as the business faced challenges from weakened consumer spending power and raised prices to address rising employment expenses.
Operating approximately 1,400 locations throughout the United Kingdom and Ireland, the pizza chain processed 71.1 million orders in the region, marking a 0.9 percent decrease from the year before.
This decline in order volume led to a significant 15 percent drop in the company’s core pre-tax earnings, which reached £91.2 million.
Nevertheless, total system sales encompassing revenue from both franchise operations and corporate-owned stores increased by 1.5 percent to £1.6 billion annually. This financial improvement stemmed mainly from a 4 percent price elevation, while actual sales volume dropped by 2.5 percent.
The pizza retailer explained that franchise operators implemented price adjustments in 2025 primarily to compensate for increased expenses related to employment taxes, particularly following national insurance rate increases.
Looking ahead, the company remains hopeful about 2026 prospects, citing encouraging early-year performance and expecting benefits from its newly introduced chicken-focused subsidiary brand.
Interim Chief Executive Nicola Frampton described 2025 as challenging for everyone, noting that reduced consumer confidence negatively affected order volumes.
Speaking to media representatives, she explained that franchise owners were compelled to raise prices due to substantial additional costs from employment policy changes, including national minimum wage increases that expanded the company’s payroll expenses.
Frampton noted that many competing brands either implemented dramatic price increases or reduced service quality, but emphasized that Domino’s maintained an appropriate balance in its approach.
The executive acknowledged upcoming challenges including another minimum wage increase scheduled for April and new Employment Rights Act provisions affecting staff scheduling and work arrangements.
However, the company plans to address these issues through improved staff scheduling efficiency, utilizing artificial intelligence technology for demand forecasting, and benefiting from anticipated food inflation reduction this year.
Frampton assumed the leadership position following the unexpected departure of former CEO Andrew Rennie, who had suggested that the UK pizza market was approaching saturation and lacked significant growth potential.
In September, Domino’s introduced its Chick ‘N’ Dip subsidiary brand to capitalize on the rapidly expanding chicken market demand in the UK, which has since been implemented across all locations nationwide.
Since taking the interim CEO role, Frampton stated that the company abandoned previous plans to acquire a second food brand, as the successful Chick ‘N’ Dip trial demonstrated they could effectively enter the growing chicken market without purchasing an expensive established brand.
The pizza chain opened 31 new locations during 2025 and targets similar expansion numbers for 2026, which leadership views as demonstrating confidence in the business outlook.
Frampton also addressed changing consumer preferences toward healthier options, noting that Domino’s is expanding its menu to include lighter portions and lower-calorie alternatives for health-conscious customers.
Company stock prices rose approximately 5 percent following the earnings announcement.