Pizza Market Saturation? Domino's Leader Departs Following Shift Into Chicken.

The boss of Domino's Pizza Group who suggested the United Kingdom might have reached pizza saturation while broadening the chain into poultry items has been removed after conflicts with its board.

Executive Change

Rennie is exiting after only 24 months in the top role, and will be succeeded on an temporary basis by the organization's chief operating officer, Nicola Frampton, while Domino's looks for a new leader.

The outgoing executive, who worked for Domino's for more than two decades, had sought to shift the UK's leading pizza food delivery firm towards poultry-based products, commenting earlier this month there was not “huge potential” left in the British pizza industry. He noted chicken was the most rapidly expanding protein in the globe.

Board Friction

Reports indicate that there was friction between the CEO and the board over his focus and business vision, although the company's announcement said he was leaving “by mutual agreement”.

Recent Product Introduction

In the autumn, the chain launched its poultry brand – which Rennie described as a “bold new chapter” for the group – and is testing it in select stores in the North West region and Northern Ireland.

While the company is still going to roll it out across its nearly 1,400 branches next year as scheduled, it regards fried chicken as an addition to its main pizza offerings.

Leadership Statement

The Domino's chair, the company chairman, stated: “Directors think that there are a series of prospects to drive further growth and value creation in our primary operations. We are concentrating on identifying the suitable leader to lead the disciplined execution of that development approach.”

Market Challenges

In the latest update, Domino's, which has a substantial customer base in the UK and Ireland, said sales dipped by 1.5 percent in the third quarter. In the summer, it cautioned that the food delivery sector had “become tougher” as it attributed economic uncertainty in the period before the budget and higher payroll outlays for disappointing revenue and a 15 percent decline in interim earnings.

Other pizza operators are also experiencing difficulties. Another major chain disclosed the shutting of 68 restaurants a month ago, after the business behind its UK venues fell into administration.

Wellness Initiatives

Responding to customer preferences towards balanced diets, the company has rolled out reduced-calorie options, such as its thin-crust range of bakes below 400 kcals as well as meat-free and allergy-friendly options. A large pepperoni pizza has 2,311 kcals. A family cheese pizza has 2,171, while a individual has under 1,000 calories.

Acting Leadership

Frampton has been with Domino's since 2021, and was formerly with the gaming group a well-known operator. It is understood that she does not want to take on the chief executive role permanently.

Frampton stated: “We have a several active development and operational projects that we will be focused on executing at speed.”

She said these included further work on the company's supply chain and menu innovation, and its customer retention initiative.

The pizza chain is also in need of a permanent finance director until 16 March, when a new appointee starts from the drinks company C&C Group. In the meantime, Snow is temporary CFO.

Jennifer Keith
Jennifer Keith

A passionate writer and creative thinker sharing insights on innovation and inspiration.