Pizza Market Saturation? Domino's Pizza Chief Executive Steps Down After Pivot Into Chicken.

The boss of Domino's Pizza Group who proposed the UK might have reached peak pizza while expanding the chain into chicken products has been ousted after tensions with its governing body.

Executive Shake-Up

The former CEO is exiting 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 long-term chief.

Rennie, who was with the company for over 20 years, had attempted to shift the UK's biggest pizza takeaway chain towards fried chicken, remarking earlier this month there was not “massive growth” left in the UK's pizza market. He said poultry was the quickest rising menu item in the world.

Governance Disagreements

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

Recent Brand Introduction

In the autumn, the chain unveiled its poultry brand – which Rennie called a “significant new phase” for the organization – and is trialling it in select stores in the North West region and Northern Ireland.

While the business is still planning to expand it across its nearly 1,400 branches next year as planned, it considers chicken products as complementary to its core pizza business.

Board Statement

The Domino's chair, the company chairman, stated: “We are confident that there are a number of opportunities to drive further growth and profitability in Domino's core business. We are concentrating on selecting the suitable leader to lead the careful implementation of that development approach.”

Market Difficulties

In the latest update, Domino's, which has 13 million customers in the British Isles, said sales declined by 1.5 percent in the Q3. In the summer, it warned that the quick-service industry had “grown more challenging” as it blamed reduced spending in the period before the budget and increasing labor expenses for below-target performance and a 15 percent decline in six-month income.

Rival chains are also experiencing difficulties. Another major chain revealed the closing of dozens of outlets a month ago, after the company behind its UK venues entered insolvency.

Wellness Efforts

Trying to keep up with customer preferences towards better nutrition, the company has launched reduced-calorie items, such as its Thin & Crispy range of pizzas below 400 kcal as well as plant-based and allergy-friendly options. A family-sized pepperoni has 2,311 calories. A family cheese pizza has 2,171 kcal, while a personal has 909 calories.

Interim Management

Nicola Frampton has been with Domino's since the recent past, and had a background at the gambling company a well-known operator. It is thought that she prefers not to assume the top job long-term.

She said: “We have a several current growth and performance initiatives that we will be concentrating on carrying out at pace.”

She said these included further work on the company's logistics network and new item creation, and its customer retention initiative.

Domino's is also lacking a long-term CFO until 16 March, when Andy Andrea joins from the drinks company C&C Group. For now, Snow acts as interim finance chief.

Mark Wang MD
Mark Wang MD

Elara is a passionate adventurer and writer, sharing insights from her global treks and love for the natural world.

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