Pizza Market Saturation? Domino's Pizza CEO Departs Following Shift Into Fried Chicken.
A chief executive of Domino's Pizza Group who proposed the United Kingdom might have reached maximum pizza demand while expanding the chain into fried chicken has been removed after tensions with its directors.
Executive Shake-Up
Rennie is leaving after only 24 months in leadership, and will be replaced on an temporary basis by the company's chief operating officer, Frampton, while Domino's searches for a new leader.
Rennie, who worked for the company for a substantial period, had sought to redirect the UK's largest pizza delivery company towards fried chicken, remarking recently there was not “massive growth” left in the UK's pizza market. He said chicken was the quickest rising protein in the world.
Board Friction
Sources suggest that there was disagreement between Rennie and the governance team over his focus and direction, although the company's release said he was leaving “by mutual agreement”.
Recent Product Launch
In the autumn, the chain introduced its chicken-focused offering – which Rennie described as a “bold new chapter” for the group – and is piloting it in select stores in the north-west of England and the province.
While the company is still planning to expand it across its extensive network next year as intended, it regards fried chicken as a supplement for its main pizza offerings.
Leadership Comment
The Domino's chair, the Domino's chair, said: “We are confident that there are a number of opportunities to enhance value and profitability in our primary operations. We are prioritizing identifying the suitable leader to lead the systematic rollout of that growth strategy.”
Market Challenges
Recently, Domino's, which has millions of users in the UK and Ireland, said transactions dipped by 1.5% in the Q3. In the summer, it cautioned that the food delivery sector had “become tougher” as it attributed reduced spending in the run-up to the budget and increasing labor expenses for disappointing revenue and a 15% drop in six-month income.
Rival chains are also experiencing difficulties. Pizza Hut announced the shutting of dozens of outlets a last month, after the business behind its outlets fell into administration.
Health Efforts
Trying to keep up with consumer trends towards healthier eating, the company has launched lower-calorie products, such as its light base selection of bakes below 400 calories as well as plant-based and wheat-free options. A family-sized pepperoni has 2,311 kcals. A family cheese pizza has 2,171 kcal, while a small has 909 kcal.
Interim Management
Nicola Frampton has been with the company since 2021, and previously worked for the betting firm William Hill. It is believed that she is not seeking to occupy the CEO position on a full-time basis.
She commented: “We have a multiple current growth and operational projects that we will be concentrating on executing at pace.”
Frampton noted these comprised further work on the organization's supply chain and product development, and its customer retention initiative.
The pizza chain is also lacking a long-term finance director until 16 March, when a new appointee starts from the Irish cider and beer maker C&C Group. For now, Richard Snow acts as interim finance chief.