Pizza Market Saturation? Domino's Pizza Leader Steps Down Following Move Towards Fried Chicken.

A head of Domino's Pizza Group who proposed the United Kingdom might have hit pizza saturation while expanding the company into fried chicken has been removed after tensions with its directors.

Executive Change

Rennie is departing after only 24 months in leadership, and will be succeeded on an acting basis by the company's chief operating officer, Nicola Frampton, while Domino's looks for a permanent CEO.

The outgoing executive, who served at Domino's for over 20 years, had aimed to shift Britain's biggest pizza takeaway chain towards fried chicken, remarking in a recent interview there was not “massive growth” left in the British pizza industry. He noted chicken was the most rapidly expanding menu item in the international market.

Governance Friction

Reports indicate that there was disagreement between the CEO and the directors over his approach and direction, although Domino's release said he was leaving “by mutual agreement”.

Recent Brand Launch

In the autumn, the chain introduced its poultry offering – which Rennie described as a “major strategic shift” for the group – and is piloting it in select stores in the north-west of England and Northern Ireland.

While the company is still planning to expand it across its almost 1,400 stores in the coming year as scheduled, it considers chicken products as complementary to its core pizza business.

Leadership Comment

Bull, the company chairman, commented: “The board believes that there are a series of prospects to enhance value and performance improvement in our primary operations. We are prioritizing identifying the right chief executive to lead the systematic rollout of that growth strategy.”

Industry Challenges

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 Q3. In the summer, it alerted that the takeaway market had “grown more challenging” as it attributed reduced spending in the lead-up to the budget and rising wage costs for below-target performance and a 15 percent decline in six-month income.

Competitors are also experiencing difficulties. Pizza Hut revealed the closure of 68 restaurants a month ago, after the company behind its outlets fell into administration.

Wellness Efforts

Responding to customer preferences towards better nutrition, the company has rolled out lower-calorie items, such as its thin-crust line of bakes below 400 kcals as well as plant-based and allergy-friendly options. A big pepperoni bake has 2,311 calories. A big margherita has over 2,100, while a small has under 1,000 calories.

Acting Management

Frampton has been with the company since 2021, and previously worked for the gaming group William Hill. It is believed that she is not seeking to assume the top job permanently.

She said: “We have a number of current expansion and operational projects that we will be focused on executing at a rapid rate.”

She added these involved ongoing development on the company's logistics network and product development, and its loyalty scheme.

Domino's is also in need of a long-term CFO until March 16, when a new appointee starts from the beverage producer C&C Group. For now, Snow serves as interim finance chief.

Mark Williams
Mark Williams

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