Domino’s has announced a new foray into the fast-growing fried chicken market as it looks to turn the tide on tough economic conditions.
Chief executive Andrew Rennie said that the new menu items – tenders, wings, and boneless bites with nine “globally-inspired” dips – were a “bold new chapter for Domino’s”.
Rennie added that the move would “open up a significant growth opportunity for our UK and Ireland business”.
The attempt to compete with heavyweights like KFC and Popeyes comes amid huge growth in the fried chicken market as Brits look for cheaper alternatives to casual dining.
The number of casual dining outlets fell four per cent in 2024, while quick service restaurant outlets rose by five per cent, boosted by a 12 per cent increase of chicken chains, according to Meaningful Vision.
Domino’s said that its “key priority” is strengthening the core UK & Ireland business, which has struggled to grow this year.
“This fantastic new product, millions of loyal customers and our trusted delivery model, is why we believe Chick ‘N’ Dip has the potential to be a powerful new growth lever for our business,” Rennie said.
The news comes after City AM reported last week that Raising Cane’s, the US fast food giant which has become a sensation on TikTok, had confirmed plans to open its first UK location next year.
The business is to launch its flagship site at 21-22 Coventry St in London’s West End towards the end of 2026. An exact opening date has yet to be announced.
The location is planned to be the first of up to five initial entries inside the capital and across the UK which it hopes to open in the months following.
The site chosen is a former Angus Steakhouse restaurant and is located between Piccadilly
Circus and Leicester Square.
‘It feels like Domino’s is 10 years too late’
AJ Bell investment director Russ Mould said: “Having tested the water with a lunch menu that added wraps to its smorgasbord of goodies, Domino’s is now going one further with a new chicken brand.
“The launch of Chick ‘N’ Dip isn’t as radical as it might first seem. Domino’s already offered chicken as a side dish and pots of dipping sauce with its pizzas.
“Chick ‘N’ Dip effectively takes those core items as the backbone of a new brand to drive earnings.
“It’s a clever and low-cost way to capitalise on what’s already in the store and in its existing supply chain.
“Expanding the range of dips is straightforward, and operating from pizza shops means limited capital expenditure.
“The big risk is that Domino’s is trying to tap into a market that’s already Chock ‘A’ Block.
“Wingstop, Popeyes and Slim Chickens are some of the newer names popping up across the country, on top of an existing estate that is densely populated by the likes of KFC, Nando’s and a host of local brands.
“Yes, fried chicken is very popular, but it feels like Domino’s is 10 years too late to exploit the opportunity.
“A fried chicken meal is much cheaper than buying a pizza, meaning that Domino’s risks its customers spending less by choosing a poultry dish over 10 slices of Pepperoni Passion.”
Domino’s struggles with ‘difficult’ market conditions
In its latest trading update in August, Domino’s told markets that the market backdrop has become “more difficult” this year, despite increasing its share of the pizza market to over half.
“Having faced a 10 per cent minimum wage increase [last year], our franchise partners faced a further significant labour cost increase [this year],” the company said.
Overall sales at Domino’s grew 1.3 per cent to £777.8m in the 26 weeks to 29 June, while revenue grew 1.4 per cent to £331.5m.
Rennie added that “weaker consumer confidence, increased employment costs and uncertainty ahead of the Autumn statement” has all contributed to tough conditions.
“There’s no getting away from the fact that the market has become tougher both for us and our franchisees,” Rennie said.