Pizza Market Saturation? Domino's Pizza CEO Steps Down Following Move Towards 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 ousted after tensions with its directors.

Leadership Change

Rennie is leaving after a brief tenure in leadership, and will be replaced on an interim basis by the company's chief operating officer, Nicola Frampton, while the pizza giant looks for a new leader.

The outgoing executive, who worked for the company for more than two decades, had attempted to redirect Britain's leading pizza delivery company towards poultry-based products, stating recently there was not “massive growth” left in the pizza sector in the UK. He observed chicken was the quickest rising menu item in the world.

Board Disagreements

Reports indicate that there was friction between the CEO and the board over his strategy and direction, although the company's announcement said he was leaving “through mutual consent”.

New Product Introduction

In the autumn, the chain launched its poultry offering – which the former chief called a “significant new phase” for the organization – and is trialling 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 intended, it regards fried chicken as an addition to its primary pizza operations.

Board Comment

The Domino's chair, the Domino's chairman, stated: “Directors think that there are a series of prospects to enhance value and profitability in the main pizza segment. We are concentrating on finding the ideal CEO to direct the systematic rollout of that development approach.”

Industry Difficulties

In the latest update, Domino's, which has 13 million customers in the British Isles, said transactions declined by 1.5% in the third quarter. In the summer, it cautioned that the food delivery sector had “intensified” as it attributed reduced spending in the period before the government announcement and increasing labor expenses for below-target performance and a significant fall in six-month income.

Rival chains are also struggling. Pizza Hut disclosed the closing of dozens of outlets a last month, after the firm behind its outlets faced financial collapse.

Wellness Initiatives

Trying to keep up with market shifts towards better nutrition, Domino's has introduced light options, such as its Thin & Crispy selection of pizzas below 400 calories as well as meat-free and wheat-free options. A big pepperoni bake has 2,311 calories. A large cheese and tomato pizza has 2,171, while a personal has 909 calories.

Interim Leadership

Frampton has been with the company since 2021, and previously worked for the betting firm a well-known operator. It is understood that she does not want to take on the top job on a full-time basis.

She commented: “Our team has a multiple active growth and operational projects that we will be concentrating on executing at pace.”

Frampton noted these involved further work on the company's logistics network and product development, and its loyalty scheme.

Domino's is also without a long-term finance director until 16 March, when Andy Andrea comes aboard from the Irish cider and beer maker a well-known firm. Until then, Richard Snow is temporary CFO.

Jeffrey Pearson
Jeffrey Pearson

A seasoned business analyst specializing in Nordic markets, with over a decade of experience in economic research and strategic consulting.