Pizza Market Saturation? Domino's Pizza Chief Executive Departs Following Pivot Into Chicken.

The chief executive of the UK's Domino's Pizza chain who suggested the United Kingdom might have hit peak pizza while diversifying the chain into chicken products has been ousted after conflicts with its board.

Leadership Shake-Up

Andrew Rennie is leaving after just two years in charge, and will be succeeded on an interim basis by the company's chief operating officer, Nicola Frampton, while Domino's seeks a new leader.

The outgoing executive, who was with the company for a substantial period, had aimed to redirect the UK's largest pizza delivery company towards fried chicken, stating recently there was not “significant expansion” left in the pizza sector in the UK. He said poultry was the fastest-growing food category in the globe.

Board Disagreements

Reports indicate that there was disagreement between Rennie and the governance team over his strategy and management style, although Domino's official statement said he was stepping down “through mutual consent”.

New Brand Launch

In September, Domino's introduced its poultry offering – which Rennie described as a “significant new phase” for the organization – and is testing it in over 200 locations in the North West region and Northern Ireland.

While the company is still going to roll it out across its nearly 1,400 branches in the coming year as intended, it regards chicken products as complementary to its core pizza business.

Leadership Statement

Bull, the company chair, said: “Directors think that there are a series of prospects to enhance value and performance improvement in our primary operations. We are concentrating on identifying the right chief executive to direct the careful implementation of that development approach.”

Market Challenges

Earlier this month, Domino's, which has a substantial customer base in the UK and Ireland, said sales declined by 1.5% in the third quarter. In August, it cautioned that the quick-service industry had “grown more challenging” as it blamed reduced spending in the lead-up to the budget and rising wage costs for weaker-than-expected sales and a 15 percent decline in half-year profits.

Other pizza operators are also experiencing difficulties. Pizza Hut announced the closure of 68 restaurants a recently, after the company behind its outlets faced financial collapse.

Wellness Initiatives

Responding to market shifts towards better nutrition, the company has rolled out light products, such as its thin-crust selection of pizzas below 400 kcals as well as meat-free and wheat-free pizzas. A family-sized pepperoni has 2,311 calories. A large cheese and tomato pizza has over 2,100, while a small has under 1,000 calories.

Interim Management

Frampton has been with Domino's since the recent past, and previously worked for the gaming group a well-known operator. It is believed that she prefers not to assume the CEO position long-term.

Frampton stated: “The company has a multiple ongoing growth and performance initiatives that we will be focused on implementing at a rapid rate.”

She added these involved further work on the company's logistics network and new item creation, and its loyalty scheme.

Domino's is also in need of a full-time finance director until 16 March, when a new appointee starts from the drinks company C&C Group. Until then, Snow is temporary CFO.

Shawn Reed
Shawn Reed

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