Pizza Market Saturation? Domino's Pizza Leader Steps Down After Shift Into Fried Chicken.
The chief executive of the UK's Domino's Pizza chain who indicated the UK might have hit maximum pizza demand while broadening the chain into poultry items has been ousted after disagreements with its governing body.
Leadership Change
The former CEO is departing after only 24 months in leadership, and will be succeeded on an acting basis by the company's chief operating officer, Frampton, while the pizza giant seeks a permanent CEO.
Rennie, who was with Domino's for more than two decades, had attempted to redirect the UK's leading pizza food delivery firm towards poultry-based products, remarking in a recent interview there was not “massive growth” left in the pizza sector in the UK. He noted poultry was the most rapidly expanding protein in the world.
Board Disagreements
Reports indicate that there was disagreement between Rennie and the board over his approach and direction, although Domino's release said he was stepping down “through mutual consent”.
New Product Launch
In the autumn, the chain introduced its poultry product line – which Rennie called a “bold new chapter” for the organization – and is testing it in select stores in the North West region and the province.
While the firm is still going to roll it out across its extensive network in the coming year as planned, it views chicken products as an addition to its core pizza business.
Board Statement
Ian Bull, the company chair, said: “We are confident that there are a series of prospects to boost expansion and value creation in Domino's core business. We are prioritizing selecting the suitable leader to direct the disciplined execution of that expansion plan.”
Industry Challenges
Earlier this month, Domino's, which has millions of users in the UK and Ireland, said sales dipped by one and a half percent in the third quarter. In the summer, it warned that the takeaway market had “grown more challenging” as it blamed economic uncertainty in the lead-up to the budget and rising wage costs for below-target performance and a 15% drop in six-month income.
Other pizza operators are also struggling. Another major chain revealed the closing of 68 restaurants a month ago, after the company behind its UK venues faced financial collapse.
Health Initiatives
Responding to market shifts towards balanced diets, Domino's has launched reduced-calorie items, such as its Thin & Crispy line of bakes below 400 kcals as well as plant-based and gluten-free pizzas. A big pepperoni bake has 2,311 kcals. A big margherita has 2,171, while a personal has 909 calories.
Interim Leadership
Nicola Frampton has been with the company since 2021, and previously worked for the gaming group William Hill. It is understood that she prefers not to take on the chief executive role long-term.
She commented: “The company has a multiple ongoing growth and performance initiatives that we will be concentrating on executing at speed.”
She added these comprised ongoing development on the company's logistics network and new item creation, and its loyalty scheme.
Domino's is also in need of a full-time chief financial officer until March 16, when Andrea joins from the beverage producer a well-known firm. Until then, Snow acts as temporary CFO.