Domino’s Points the Finger at Planning Delays for Sluggish UK Growth

Domino’s Pizza has become the latest high-profile brand to publicly criticise the UK’s planning system, warning that bureaucratic bottlenecks are undermining its expansion plans. Chief executive Andrew Rennie said that excessive red tape, coupled with delays in securing electricity and gas connections, had forced the company to reduce the number of store openings this year.

Rennie admitted the pizza giant had lost “a bunch of stores this year” to planning and utility connection delays. While most of these outlets are still expected to open, the timelines have slipped by as much as six months, prompting concerns about the long-term impact on growth.

Government Promises vs. Industry Reality

The Labour government has pledged to streamline planning as a central pillar of its economic growth agenda. The Planning and Infrastructure Bill, introduced in March, removed councillors’ ability to block most new developments and loosened regulations for new cafés, bars, and music venues. Ministers have also promised reforms to speed up energy grid connections — a frequent source of delay for new businesses.

Yet, despite welcoming the government’s rhetoric, Rennie remains unconvinced. “I applaud them for cutting red tape,” he said, “but I have not seen any evidence yet of a freer planning system. Delays are still as prevalent as they have been for a while. That’s frustrating.”

A Broader Business Backlash

Domino’s is far from alone in its criticism. Lord Wolfson, chief executive of Next, described planning as a “constant battle” stretching back three decades, while Aldi UK boss Giles Hurley has said the process is “more convoluted, more complex” than ever.

With a target of 2,000 stores across the UK and Ireland by 2033, Domino’s will need more than 600 additional outlets. But the current pace is slow: just 11 new stores — alongside nine new franchise partners — have opened in 2025. Higher employment costs and tax rises have also weighed on the expansion drive, particularly for franchisees.

Strategic Shifts and Market Pressure

To navigate the headwinds, Domino’s has focused on smaller locations with minimal competition, opening around 20 stores in towns with fewer than 10,000 residents since 2024. The company expects mid-twenties store openings this year, with a “healthy pipeline” heading into 2026.

However, recent financial results reveal growing pressures. Profits at the FTSE 250-listed group fell this week, and uncertainty over possible autumn tax rises has dampened consumer confidence. The news sent shares tumbling by nearly 18 per cent, closing at 202¾p after an intraday drop of 20 per cent.

A Dominant Market Player — Facing Obstacles

Domino’s Pizza Group operates 1,381 stores in the UK and Ireland, with 95 per cent run by franchisees. It controls more than half the UK pizza delivery market, increasing its share by 5.6 percentage points to 53.7 per cent this year. Yet the company’s expansion ambitions remain at the mercy of planning bureaucracy — a challenge shared by many in the retail and hospitality sectors.

The question now is whether the government’s reforms can translate from policy announcements to tangible results — and whether brands like Domino’s can keep growing while waiting for the wheels of the planning system to turn finally.