Pizza Market Saturation? Domino's CEO Departs Following Move Into Chicken.
The chief executive of Domino's Pizza Group who proposed the UK might have hit peak pizza while broadening the company into poultry items has been removed after tensions with its directors.
Leadership Transition
Andrew Rennie is leaving after just two years in the top role, and will be replaced on an acting basis by the company's operations head, Frampton, while Domino's looks for a new leader.
Rennie, who worked for the company for more than two decades, had sought to redirect the UK's biggest pizza delivery company towards poultry-based products, commenting in a recent interview there was not “significant expansion” left in the UK's pizza market. He said poultry was the fastest-growing menu item in the globe.
Board Friction
Sources suggest that there was tension between the CEO and the board over his approach and business vision, although Domino's official statement said he was stepping down “as a joint decision”.
Recent Brand Launch
In September, the chain launched its chicken-focused offering – which Rennie referred to as a “significant new phase” for the company – and is trialling it in select stores in the north-west of England and Northern Ireland.
While the company is still intending to launch it across its nearly 1,400 branches in the coming year as scheduled, it considers fried chicken as a supplement for its main pizza offerings.
Leadership Statement
Ian Bull, the company chair, said: “Directors think that there are a range of possibilities to boost expansion and value creation in the main pizza segment. We are focused on selecting the ideal CEO to lead the careful implementation of that development approach.”
Market Difficulties
Earlier this month, the pizza delivery giant, which has a substantial customer base in the UK and Ireland, said transactions declined by one and a half percent in the latest quarter. In August, it cautioned that the quick-service industry had “become tougher” as it attributed weaker consumer confidence in the period before the budget and higher payroll outlays for weaker-than-expected sales and a 15% drop in half-year profits.
Competitors are also struggling. Another major chain announced the shutting of multiple locations a last month, after the company behind its UK venues entered insolvency.
Wellness Initiatives
Trying to keep up with market shifts towards better nutrition, the company has launched light products, such as its thin-crust line of pizzas below 400 calories as well as vegan and allergy-friendly pizzas. A family-sized pepperoni has 2,311 kcals. A big margherita has 2,171 kcal, while a individual has 909 kcal.
Interim Leadership
Nicola Frampton has been with Domino's since 2021, and had a background at the betting firm a well-known operator. It is believed that she prefers not to assume the chief executive role long-term.
She commented: “We have a multiple current expansion and performance initiatives that we will be dedicated to executing at pace.”
She said these included additional efforts on the company's supply chain and product development, and its loyalty scheme.
The pizza chain is also without a permanent finance director until 16 March, when a new appointee comes aboard from the drinks company C&C Group. For now, Snow is temporary CFO.