Pizza Market Saturation? Domino's Pizza CEO Departs Following Move Towards Fried Chicken.
A chief executive of the UK's Domino's Pizza chain who suggested the United Kingdom might have hit pizza saturation while expanding the franchise into poultry items has been removed after conflicts with its board.
Leadership Shake-Up
Rennie is departing after only 24 months in charge, and will be succeeded on an interim basis by the company's operations head, Frampton, while Domino's seeks a permanent CEO.
The outgoing executive, who was with Domino's for more than two decades, had aimed to pivot Britain's largest pizza delivery company towards fried chicken, commenting earlier this month there was not “significant expansion” left in the UK's pizza market. He said poultry was the fastest-growing protein in the international market.
Governance Friction
Sources suggest that there was tension between the CEO and the governance team over his focus and business vision, although the company's announcement said he was departing “as a joint decision”.
New Brand Launch
In September, the chain introduced its Chick 'N' Dip offering – which the former chief described as a “bold new chapter” for the company – and is testing it in 210 outlets in the north-west of England and the province.
While the firm is still going to roll it out across its almost 1,400 stores next year as planned, it views fried chicken as a supplement for its main pizza offerings.
Leadership Statement
Bull, the Domino's chair, said: “We are confident that there are a range of possibilities to drive further growth and performance improvement in Domino's core business. We are focused on selecting the suitable leader to direct the careful implementation of that expansion plan.”
Market Challenges
In the latest update, Domino's, which has 13 million customers in the British Isles, said sales dipped by one and a half percent in the Q3. In August, it cautioned that the takeaway market had “become tougher” as it blamed economic uncertainty in the period before the budget and increasing labor expenses for weaker-than-expected sales and a significant fall in six-month income.
Other pizza operators are also experiencing difficulties. Another major chain disclosed the closing of multiple locations a recently, after the company behind its UK venues fell into administration.
Health Efforts
Adapting to consumer trends towards better nutrition, the company has introduced reduced-calorie options, such as its Thin & Crispy range of pizzas below 400 calories as well as plant-based and wheat-free pizzas. A family-sized pepperoni has 2,311 kcals. A family cheese pizza has 2,171 kcal, while a personal has 909 calories.
Interim Leadership
Nicola Frampton has been with Domino's since 2021, and was formerly with the gambling company William Hill. It is thought that she prefers not to occupy the chief executive role permanently.
She said: “We have a multiple current growth and efficiency programs that we will be dedicated to implementing at pace.”
She said these included additional efforts on the organization's procurement system and menu innovation, and its loyalty scheme.
The pizza chain is also in need of a full-time finance director until the spring, when Andrea joins from the beverage producer a well-known firm. Until then, Snow is interim finance chief.