Pizza Market Saturation? Domino's Pizza Leader Exits Following Move Towards Fried Chicken.
A head of the UK's Domino's Pizza chain who proposed the UK might have hit pizza saturation while broadening the chain into fried chicken has been removed after conflicts with its directors.
Executive Change
Rennie is departing after only 24 months in charge, and will be replaced on an interim basis by the company's chief operating officer, Frampton, while the pizza giant searches for a new leader.
Rennie, who was with the company for more than two decades, had aimed to shift the UK's largest pizza delivery company towards poultry-based products, commenting in a recent interview there was not “significant expansion” left in the UK's pizza market. He said chicken was the quickest rising menu item in the globe.
Governance Friction
Reports indicate that there was friction between Rennie and the board over his strategy and management style, although Domino's official statement said he was stepping down “by mutual agreement”.
New Product Launch
In the autumn, Domino's introduced its chicken-focused offering – which the former chief called a “bold new chapter” for the organization – and is trialling it in 210 outlets in the north-west of England and the province.
While the business is still planning to expand it across its extensive network next year as scheduled, it regards chicken products as complementary to its primary pizza operations.
Leadership Statement
The Domino's chair, the company chair, said: “We are confident that there are a series of prospects to drive further growth and profitability in Domino's core business. We are concentrating on selecting the right chief executive to direct the systematic rollout of that expansion plan.”
Industry Challenges
Recently, the pizza delivery giant, which has a substantial customer base in the UK and Ireland, said transactions fell by 1.5 percent in the third quarter. In the summer, it warned that the quick-service industry had “grown more challenging” as it blamed economic uncertainty in the run-up to the budget and increasing labor expenses for disappointing revenue and a 15% drop in six-month income.
Competitors are also facing challenges. Another major chain revealed the shutting of multiple locations a last month, after the business behind its British operations fell into administration.
Wellness Efforts
Responding to market shifts towards balanced diets, the company has rolled out reduced-calorie options, such as its light base line of pizzas below 400 calories as well as plant-based and allergy-friendly pizzas. A family-sized pepperoni has over 2,300 kcal. A big margherita has 2,171, while a individual has 909 calories.
Interim Leadership
Nicola Frampton has been with the company since 2021, and was formerly with the betting firm a well-known operator. It is understood that she prefers not to occupy the chief executive role on a full-time basis.
She said: “The company has a several active development and operational projects that we will be focused on executing at speed.”
She said these comprised further work on the organization's supply chain and menu innovation, and its customer retention initiative.
The pizza chain is also without a long-term chief financial officer until 16 March, when Andrea joins from the drinks company C&C Group. In the meantime, Snow serves as interim finance chief.