Pizza Market Saturation? Domino's CEO Departs Following Pivot Into Chicken.
The chief executive of Domino's Pizza Group who suggested the United Kingdom might have hit maximum pizza demand while diversifying the franchise into fried chicken has been removed after tensions with its directors.
Leadership Change
Rennie is departing after just two years in leadership, and will be succeeded on an interim basis by the company's chief operating officer, Frampton, while the pizza giant seeks a permanent CEO.
The outgoing executive, who served at the company for a substantial period, had sought to shift the UK's largest pizza delivery company towards poultry-based products, remarking recently there was not “massive growth” left in the British pizza industry. He said poultry was the quickest rising menu item in the globe.
Governance Disagreements
Reports indicate that there was tension between Rennie and the board over his approach and management style, although the company's release said he was departing “by mutual agreement”.
Recent Product Launch
In the autumn, Domino's unveiled its chicken-focused product line – which the former chief described as a “significant new phase” for the company – and is trialling it in 210 outlets in the North West region and the province.
While the business is still planning to expand it across its nearly 1,400 branches in the coming year as scheduled, it considers fried chicken as complementary to its primary pizza operations.
Board Statement
Ian Bull, the Domino's chair, stated: “We are confident that there are a range of possibilities to drive further growth and performance improvement in our primary operations. We are focused on identifying the suitable leader to direct the disciplined execution of that development approach.”
Market Challenges
Earlier this month, Domino's, which has a substantial customer base in the British Isles, said transactions fell by one and a half percent in the Q3. In August, it cautioned that the takeaway market had “intensified” as it blamed reduced spending in the lead-up to the budget and increasing labor expenses for disappointing revenue and a 15 percent decline in interim earnings.
Rival chains are also struggling. Pizza Hut disclosed the shutting of dozens of outlets a month ago, after the firm behind its British operations fell into administration.
Wellness Efforts
Responding to market shifts towards healthier eating, the company has rolled out reduced-calorie products, such as its light base selection of pizzas below 400 calories as well as plant-based and allergy-friendly options. A big pepperoni bake has 2,311 calories. A large cheese and tomato pizza has 2,171, while a small has under 1,000 calories.
Acting Leadership
The interim chief has been with Domino's since 2021, and had a background at the gaming group William Hill. It is understood that she prefers not to take on the top job on a full-time basis.
She commented: “Our team has a several current development and operational projects that we will be dedicated to carrying out at pace.”
Frampton noted these comprised further work on the company's logistics network and menu innovation, and its loyalty scheme.
The pizza chain is also without a full-time chief financial officer until the spring, when Andy Andrea joins from the beverage producer C&C Group. For now, Richard Snow serves as acting financial officer.