Key facts
- Domino's Pizza is continuing its strategy to expand into the fried chicken market.
- The company's new "chick'n’dip" range contributed to a 5% rise in like-for-like sales, surpassing analyst expectations.
- Domino's aims to leverage its existing delivery infrastructure to offer chicken products without significant new capital investment.
- The UK fried chicken market has seen substantial growth, with sales reaching £2bn and new competitors entering the space.
- Domino's currently holds a 4% share of the UK fried chicken market and identifies significant growth opportunities.
Domino's Pizza is continuing its strategic push into the fried chicken market, a move initiated by its former chief executive Andrew Rennie who had suggested consumers were nearing "peak pizza." Despite Rennie's departure, new CEO Nicola Frampton has indicated the company remains committed to this expansion, highlighting a new "chick'n’dip" range as a significant contributor to a recent 5% increase in like-for-like sales, exceeding analyst forecasts.
The UK fried chicken market has experienced substantial growth, with out-of-home sales projected to reach £2bn by 2025, up from £700m between 2022 and 2025. This surge has attracted new players like Wingstop, which reported a 73% revenue increase to £216m and opened its 100th UK location, and Popeyes, aiming for 350 UK venues. Even bakery chain Greggs has entered the poultry sector. In response, KFC is investing £1.5bn to open 500 new restaurants.
Analysts have expressed some caution about Domino's entering a saturated market, but early results are encouraging. Frampton explained the logic behind the expansion, stating that chicken is a large adjacent category that Domino's can enter using its existing infrastructure with minimal additional capital investment. The company is targeting consumers looking to add chicken to their home delivery orders, not directly competing with dine-in establishments. Domino's currently holds a 4% share of the £3bn fried chicken market and sees considerable room for growth.