Pizza Market Saturation? Domino's Pizza CEO Departs After Move Towards Fried Chicken.
A boss of the UK's Domino's Pizza chain who proposed the UK might have reached pizza saturation while expanding the franchise into poultry items has been removed after tensions with its directors.
Executive Shake-Up
Andrew Rennie is exiting after just two years in the top role, and will be succeeded on an temporary basis by the company's operations head, Frampton, while the pizza giant seeks a new leader.
The outgoing executive, who worked for Domino's for more than two decades, had attempted to shift the UK's leading pizza delivery company towards poultry-based products, remarking earlier this month there was not “massive growth” left in the UK's pizza market. He observed chicken was the fastest-growing menu item in the globe.
Governance Disagreements
Sources suggest that there was friction between Rennie and the governance team over his focus and direction, although Domino's release said he was leaving “as a joint decision”.
New Brand Introduction
In September, the chain unveiled its poultry offering – which the former chief called a “major strategic shift” for the group – and is testing it in 210 outlets in the North West region and Northern Ireland.
While the firm is still intending to launch it across its almost 1,400 stores in the coming year as planned, it considers chicken products as an addition to its core pizza business.
Leadership Comment
Ian Bull, the company chairman, commented: “Directors think that there are a range of possibilities to enhance value and performance improvement in our primary operations. We are prioritizing selecting the ideal CEO to oversee the disciplined execution of that growth strategy.”
Market Challenges
Earlier this month, the pizza delivery giant, which has a substantial customer base in the UK and Ireland, said transactions dipped by 1.5 percent in the third quarter. In the summer, it warned that the takeaway market had “intensified” as it attributed weaker consumer confidence in the run-up to the budget and higher payroll outlays for below-target performance and a significant fall in interim earnings.
Rival chains are also struggling. Another major chain announced the closing of dozens of outlets a last month, after the company behind its UK venues entered insolvency.
Wellness Efforts
Adapting to market shifts towards better nutrition, the company has introduced reduced-calorie options, such as its Thin & Crispy selection of pizzas below 400 calories as well as vegan and wheat-free options. A big pepperoni bake has 2,311 kcals. A large cheese and tomato pizza has 2,171 kcal, while a small has 909 calories.
Acting Leadership
Nicola Frampton has been with the company since 2021, and was formerly with the gaming group a well-known operator. It is believed that she prefers not to take on the top job long-term.
She said: “The company has a number of ongoing expansion and operational projects that we will be focused on executing at pace.”
She added these comprised ongoing development on the company's logistics network and menu innovation, and its rewards program.
The pizza chain is also without a permanent chief financial officer until the spring, when Andy Andrea joins from the Irish cider and beer maker C&C Group. For now, Richard Snow serves as acting financial officer.