Domino's Franchisees Curb Expansion Amid Tougher Market

As of August 5th, 2025, Domino's Pizza Group is facing a challenging market environment that has impacted its business performance. The pizza delivery chain has reported that it will miss its original profit guidance for the year, as its franchisees have been "cautious" about opening new stores due to higher labor costs.

According to Domino's CEO Andrew Rennie, the company has seen "weaker consumer confidence" in recent months, which has affected sales growth. The group's system sales grew only 1.3% in the first half of the year, with like-for-like sales declining 0.1% as delivery orders "weakened" in the second quarter.

Domino's had previously expected to open "in excess of 50 new stores" this financial year, but it now anticipates opening only "in the mid-20s" due to the cautious approach taken by its franchisees. Rennie cited the increased employment costs and economic uncertainty ahead of the upcoming autumn statement as factors contributing to the franchisees' more conservative approach to expansion.

The company has stressed that it expects the slowdown in new store openings to be "short-term" and that it expects the pace of expansion to pick up again next year. However, the challenging market conditions have led Domino's to revise its profit guidance, with the group now expecting to deliver earnings between £130 million and £140 million for the year, down from the previous range of £140.8 million to £149.7 million.