Pizza Market Saturation? Domino's Chief Executive Steps Down After Move Towards Fried Chicken.

The boss of the UK's Domino's Pizza chain who suggested the United Kingdom might have reached peak pizza while expanding the company into poultry items has been replaced after disagreements with its directors.

Leadership Shake-Up

Rennie is departing after only 24 months in charge, and will be succeeded on an acting basis by the company's operations head, Frampton, while the pizza giant seeks a new leader.

The outgoing executive, who was with the company for over 20 years, had aimed to shift the UK's leading pizza delivery company towards poultry-based products, stating in a recent interview there was not “huge potential” left in the pizza sector in the UK. He noted poultry was the fastest-growing protein in the international market.

Governance Friction

Sources suggest that there was friction between Rennie and the governance team over his approach and management style, although the company's release said he was leaving “through mutual consent”.

New Product Launch

In September, the chain introduced its chicken-focused offering – which Rennie referred to as a “significant new phase” for the group – and is trialling it in 210 outlets in the North West region and the province.

While the company is still intending to launch it across its extensive network in the coming year as scheduled, it regards chicken products as an addition to its core pizza business.

Leadership Comment

Ian Bull, the company chair, said: “Directors think that there are a series of prospects to drive further growth and value creation in Domino's core business. We are concentrating on selecting the suitable leader to direct the systematic rollout of that development approach.”

Industry Difficulties

Earlier this month, Domino's, which has 13 million customers in the British Isles, said sales dipped by one and a half percent in the latest quarter. In the summer, it cautioned that the food delivery sector had “grown more challenging” as it blamed reduced spending in the lead-up to the government announcement and increasing labor expenses for weaker-than-expected sales and a 15% drop in interim earnings.

Other pizza operators are also struggling. Another major chain announced the closure of dozens of outlets a last month, after the company behind its outlets entered insolvency.

Health Initiatives

Responding to consumer trends towards healthier eating, Domino's has rolled out reduced-calorie options, such as its Thin & Crispy line of pizzas below 400 kcals as well as plant-based and gluten-free pizzas. A large pepperoni pizza has over 2,300 kcal. A big margherita has over 2,100, while a small has 909 kcal.

Acting Management

Nicola Frampton has been with the company since 2021, and was formerly with the gambling company William Hill. It is understood that she is not seeking to take on the top job permanently.

She said: “Our team has a several active expansion and efficiency programs that we will be dedicated to executing at a rapid rate.”

Frampton noted these included additional efforts on the organization's logistics network and new item creation, and its rewards program.

Domino's is also in need of a full-time chief financial officer until the spring, when Andrea joins from the drinks company a well-known firm. For now, Richard Snow serves as acting financial officer.

Denise Hill
Denise Hill

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