Domino's Pizza franchisees demand meeting with top boss over profit structure

Emily Nicolle
Follow Emily
Shares in Domino's have fallen by almost a third in the last year (Source: Domino's Pizza)

Domino's Pizza store owners have upped their onslaught against the food chain's top UK executives, alleging an ongoing row between the two sides is far from over.

The Domino's Franchisee Association wrote to the FTSE 250 group last week to warn that suggestions of a resolution in the near future were "extremely misleading", according to the Sunday Times.

Chief executive David Wild had recently told shareholders that the firm was "very optimistic" about finding a solution with its franchisees, as a longstanding dispute over the group's profit structure burns on.

Read more: Domino's denies shareholder unrest over board changes

The Franchisee Association, which represents about 90 per cent of the group's 67 store owners, refused to open any more stores last year until its slice of the group's overall profit was increased. It alleged its share of Domino's income has fallen from 61 per cent to 50 per cent since 2015.

Domino's Pizza Group reported a rise in revenue of 14.5 per cent to £534.3m in its full-year results on Tuesday, but profit continued to slide down 22 per cent to £61m.

Wild attributed the slowdown to "growing pains" in its international arm, where the group owns stakes in Domino's chains in the Nordics and Switzerland.

Read more: Domino's profits hit by international 'growing pains'

In a letter seen by the Sunday Times, the store owners group said it had "repeatedly raised concerns about the lack of any medium and long-term strategy" for the company.

Domino's Pizza Group's share price has fallen by almost a third in the last year, powered by a slower rate of store openings and disputes with both franchisees and shareholders. The firm is currently valued at just over £1bn as of Friday's close.

Both parties could not be reached for comment.