Domino’s Pizza Group is planning to offer more local deals to customers as food costs decline. Despite an uptick in sales during the Euro 2024 football tournament, the company has lowered its profit outlook due to slow orders in the first half of the year. The new deals aim to pass on the savings from reduced food costs to customers.

Domino’s Pizza Group, a chain of fast food, says it will offer more local deals and promotions to customers amid food costs continuing to fall. The move is meant to make meals more affordable and push more customers to order from the stores in the future months.

Lower Food Costs, More Savings for Customers

With falling food prices, Domino’s is prepared to pass some of those savings on to consumers. According to the company spokesperson, it is the franchise owners who set the prices for stores, and they would be expected to pass along the savings through local deals. Customers can look forward to more affordable options at their local Domino’s outlets.

Slower Start This Year

Despite a boost in sales from the Euro 2024 football tournament, Domino’s had a slower start to the year than expected. Orders were down in the first half, the pizza chain said, and lowered its full-year profit forecast as a result.

Orders at Domino’s slipped 0.9 percent to £35.1 million in the six months to June 30. Revenues were also down 1.8 percent at £326.8 million. Profit before tax fell 35 percent to £59.4 million. Based on these numbers, the group now sees earnings at the lower end of analysts’ forecast of between £144 million and £149 million.

Promotions and Deals

Offsetting the slow start, Domino’s has been running national promotions such as a £4 lunch deal. Lunch sales presently form only 10-15% of their business, and the company is looking to increase the number through more promotions. Intense competition and cost-of-living crisis have pushed fast-food chains to offer more deals to attract customers. For example, McDonald’s and Greggs brought in low-cost breakfasts, and KFC and Domino’s focused on value-for-money lunch offers.

Franchise Model

The stores of Domino’s spread across the UK and Ireland are operated by 65 franchise owners. All these owners range from large ones operating hundreds of outlets to small ones having one outlet. The franchise model provides the freedom to these owners to decide on price and special offers at their respective locales.

The men’s football tournament ran through Euro 2024 from mid-June to mid-July and provided a much-needed boost for Domino’s sales. During England’s matches in the period, it sold 20 pizzas every second, with 5.8% more orders placed in July.

Andrew Rennie, chief executive of Domino’s, said: “Following a slow start to the year, we now have good momentum in the business. Our strategic initiatives are gathering momentum, and our trading performance is gradually improving.” He added that since mid-May, orders were showing a marked improvement, with delivery orders growing again.

Plans for Expansion

The future is huge in terms of growth for Domino’s. Next year, the company will celebrate its 40th anniversary having almost reached 1,400 stores. Rennie said that the Domino’s target was to have 2,000 stores within the next three to five years. Competitors like Pizza Hut and Papa John’s have been closing outlets while Domino’s plans to add a total of 70 new outlets this year, 22 of which were opened in the first half.

Competition and Market Challenges

It is not just Domino’s that has a problem. Last week McDonald’s said it was re-examining its pricing because of falling sales. Sales at McDonald’s outlets open for at least a year slipped by 1% between April and June compared to the previous year. It was the first drop since the Covid-19 pandemic.

Final Thoughts

Domino’s Pizza Group is responding to the present market by offering more local deals and promotions. When food costs fall, the company seeks to let these savings trickle down to customers to attract more business. While the start of the year is slow, Domino’s is optimistic with regards to its growth and future plans, especially with the help of its franchise partners. In a fast-moving environment in which the fast food market is changing faster than ever, Dominos will be dedicated to offering customers value while building additional scale in the UK and Ireland.