Domino's Introduces Fried Chicken Menu to Revive UK Business

Domino's Pizza UK launches a new fried chicken menu, "Chick 'n' Dip", in an effort to revive its fortunes after a decline in value. The menu will be trialled in 187 stores in the northwest of England and Northern Ireland before being rolled out nationally. The launch aims to drive further growth for the core UK and Ireland Domino's business.

Domino's Pizza UK has unveiled a new fried chicken menu, "Chick 'n' Dip," in an attempt to bolster its declining sales and drive growth. The menu, which features an array of chicken tenders, wings, and boneless bites, will be trialled in 187 stores across the northwest of England and Northern Ireland before a national rollout. The initiative comes as the company seeks to capitalize on the growing demand for chicken and diversify its offerings beyond pizza.

The launch of "Chick 'n' Dip" follows a period of challenging conditions for Domino's, including a significant drop in share price and reduced consumer confidence. In August, the company reported weaker sales and cited increased operational costs, labor costs, and taxes as obstacles to its expansion strategy [1]. However, CEO Andrew Rennie remains optimistic about the company's prospects, noting that pizza remains a growing market and that there is clear demand for chicken products [1].

Domino's has been preparing for this expansion by conducting consumer research and testing the new concept over the past two years. The company believes that its strong distribution network and established brand make it well-positioned to succeed in the chicken market, which has seen increased competition from high-street mainstays like KFC and American competitors such as Popeyes and Wingstop [1].

While the trial phase of "Chick 'n' Dip" is underway, Domino's has also taken steps to address its financial challenges. The company has revised its full-year core profit forecast to between £130 million and £140 million, citing rising operational costs and a dip in consumer demand [2]. However, there is cautious optimism among analysts, who anticipate a recovery in like-for-like sales in the coming year, driven by factors such as the rollout of a loyalty scheme, the FIFA World Cup, and potentially more favorable weather conditions [2].

The introduction of "Chick 'n' Dip" is part of Domino's broader strategy to diversify its menu and expand its customer base. By offering a new product line that caters to the growing demand for chicken, the company aims to reinvigorate its UK and Ireland business and secure further growth.

References:
[1] https://www.liverpoolecho.co.uk/whats-on/whats-on-news/dominos-takes-aim-kfc-launches-32433032
[2] https://www.marketscreener.com/news/uk-s-domino-s-pizza-stands-by-profit-forecast-unveils-20m-buyback-ce7c50d2de81f42d