Pizza Market Saturation? Domino's Leader Departs Following Shift Into Fried Chicken.

The chief executive of the UK's Domino's Pizza chain who proposed the United Kingdom might have reached pizza saturation while expanding the chain into chicken products has been ousted after conflicts with its directors.

Leadership Change

Andrew Rennie is departing after a brief tenure in leadership, and will be replaced on an interim basis by the organization's chief operating officer, Frampton, while Domino's searches for a long-term chief.

Rennie, who was with the company for more than two decades, had aimed to pivot Britain's biggest pizza takeaway chain towards poultry-based products, remarking earlier this month there was not “massive growth” left in the British pizza industry. He observed poultry was the most rapidly expanding protein in the world.

Governance Friction

It is understood that there was friction between the CEO and the directors over his strategy and direction, although Domino's official statement said he was stepping down “by mutual agreement”.

Recent Product Introduction

In the autumn, Domino's unveiled its poultry offering – which the former chief described as a “significant new phase” for the group – and is trialling it in over 200 locations in the North West region and Northern Ireland.

While the company is still intending to launch it across its almost 1,400 stores next year as planned, it regards fried chicken as an addition to its main pizza offerings.

Board Comment

The Domino's chair, the company chairman, stated: “The board believes that there are a range of possibilities to boost expansion and profitability in Domino's core business. We are concentrating on identifying the right chief executive to lead the systematic rollout of that development approach.”

Industry Challenges

Earlier this month, the pizza delivery giant, which has a substantial customer base in the UK and Ireland, said orders fell by 1.5 percent in the Q3. In August, it warned that the food delivery sector had “intensified” as it attributed weaker consumer confidence in the lead-up to the government announcement and increasing labor expenses for weaker-than-expected sales and a 15 percent decline in six-month income.

Competitors are also facing challenges. Pizza Hut disclosed the closure of multiple locations a month ago, after the company behind its outlets entered insolvency.

Wellness Efforts

Responding to market shifts towards healthier eating, the company has rolled out light options, such as its thin-crust range of bakes below 400 kcals as well as plant-based and allergy-friendly pizzas. A family-sized pepperoni has 2,311 kcals. A large cheese and tomato pizza has 2,171 kcal, while a personal has 909 calories.

Interim Leadership

Nicola Frampton has been with Domino's since 2021, and previously worked for the gaming group a well-known operator. It is thought that she does not want to take on the top job long-term.

Frampton stated: “The company has a multiple active growth and performance initiatives that we will be concentrating on carrying out at speed.”

She added these included further work on the organization's procurement system and menu innovation, and its loyalty scheme.

Domino's is also in need of a permanent chief financial officer until 16 March, when a new appointee joins from the drinks company a well-known firm. In the meantime, Richard Snow acts as acting financial officer.

James Costa
James Costa

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