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Domino's Pizza has reported a profit rise of 32.7 per cent to £10.9 million for the first half as consumers increasingly choose to stay in.

The pizza delivery group opened a record 25 more stores over the 26 weeks to June 29th 2008 and sales rose at its 450 mature stores.

Stephen Hemsley, executive chairman of Domino’s Pizza for the UK and Ireland, said: "Like for like sales continue to grow at an impressive 11.4 per cent, on top of the exceptional 2007 comparatives and despite the current more difficult economic environment for consumers. Encouragingly, new stores are trading very strongly on opening."

The service sector is seeing a downturn as consumers make cut backs, due to rising household bills.

However, Domino's said this has benefited the company as consumers are more likely to take the cheaper option of staying in and having food delivered than eating out.

"We are on track to open 50 new stores this year and although we are mindful of the very strong comparatives in the second half of the year, we are confident of further strong growth in system sales and profits and are well placed to exceed market expectations for the year," said Mr Hemsley.

The company is expecting challenges ahead, however.

Rising food costs have so far had a limited impact because of contracts with suppliers but price rises will be necessary next year, the company warned.

Domino's also attributed its sales increase to its sponsorship of ITV show Britain's Got Talent, as well as online ordering.

E-commerce sales are up 85.1 per cent to £25.3 million from last year, representing 21.8 per cent of delivered pizza sales in the UK.