Domino’s Pizza Group have revealed they are facing a £3 million hit from the Autumn Budget with the employer’s national insurance contributions hike and the minimum wage which has “significantly increased the cost of labour.”
The group said they have announced a five-year profit and sales agreements with their franchisees and will announce investment plans for expansion.
“Although we have identified specific mitigation plans, we now believe that the annual impact for Domino’s Pizza Group will be circa £3 million per annum from 2024-25 onwards,” the group said.
The company said that in the first nine weeks of the fourth quarter orders were up by 5.3%, like-for-like sales rose 2.7% and growth of 0.7% was seen in the previous three months.
Andrew Rennie, chief executive of Domino’s, said, “Having a five-year framework in place provides a strong platform for the long-term, sustainable growth of the brand.”
“It also means we will be well-placed to address the headwinds all consumer-facing businesses will inevitably face in 2025 and will ensure we are in a strong position to thrive in the years that follow,” he added.
Mark Millar, chairman of the Domino’s Franchise Association, said, “Against a backdrop of significant and unexpected tax increases from the UK Budget, having a five-year framework in place provides some much-needed certainty for our members.”
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