Pizza Market Saturation? Domino's CEO Steps Down Following Shift Towards Fried Chicken.

A head of Domino's Pizza Group who suggested the UK might have hit peak pizza while broadening the chain into chicken products has been replaced after tensions with its directors.

Executive Change

Rennie is leaving after just two years in charge, and will be succeeded on an temporary basis by the company's chief operating officer, Nicola Frampton, while the pizza giant searches for a long-term chief.

Rennie, who was with Domino's for more than two decades, had aimed to redirect Britain's leading pizza delivery company towards chicken offerings, stating earlier this month there was not “significant expansion” left in the pizza sector in the UK. He observed chicken was the quickest rising protein in the globe.

Board Tensions

Reports indicate that there was friction between the CEO and the governance team over his approach and management style, although the company's release said he was departing “as a joint decision”.

Recent Product Launch

In the autumn, Domino's introduced its poultry offering – which Rennie described as a “bold new chapter” for the group – and is piloting it in over 200 locations in the north-west of England and the province.

While the company is still intending to launch it across its almost 1,400 stores next year as scheduled, it views chicken products as complementary to its core pizza business.

Leadership Statement

Bull, the Domino's chairman, stated: “The board believes that there are a range of possibilities to drive further growth and performance improvement in the main pizza segment. We are focused on identifying the suitable leader to oversee the disciplined execution of that growth strategy.”

Industry Difficulties

Earlier this month, the pizza delivery giant, which has a substantial customer base in the British Isles, said orders fell by 1.5 percent in the Q3. In the summer, it alerted that the takeaway market had “grown more challenging” as it blamed economic uncertainty in the period before the government announcement and higher payroll outlays for weaker-than-expected sales and a 15% drop in half-year profits.

Other pizza operators are also experiencing difficulties. Another major chain announced the closure of multiple locations a recently, after the firm behind its outlets entered insolvency.

Health Initiatives

Adapting to consumer trends towards healthier eating, the company has launched light options, such as its light base line of bakes below 400 calories as well as plant-based and allergy-friendly options. A family-sized pepperoni has over 2,300 kcal. A big margherita has 2,171, while a personal has under 1,000 calories.

Acting Leadership

Frampton has been with Domino's since the recent past, and previously worked for the gaming group a well-known operator. It is understood that she does not want to assume the top job permanently.

She commented: “We have a several active growth and efficiency programs that we will be focused on carrying out at a rapid rate.”

She said these included further work on the company's supply chain and product development, and its loyalty scheme.

Domino's is also without a long-term finance director until 16 March, when Andy Andrea joins from the beverage producer C&C Group. Until then, Snow acts as temporary CFO.

Corey Adams
Corey Adams

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