Pizza Market Saturation? Domino's Pizza Leader Exits After Shift Into Chicken.

The boss of the UK's Domino's Pizza chain who suggested the UK might have reached peak pizza while expanding the company into chicken products has been ousted after conflicts with its directors.

Leadership Transition

The former CEO is exiting after just two years in the top role, and will be succeeded on an temporary basis by the organization's operations head, Nicola Frampton, while Domino's looks for a new leader.

The outgoing executive, who served at Domino's for a substantial period, had sought to redirect the UK's leading pizza takeaway chain towards fried chicken, stating earlier this month there was not “huge potential” left in the UK's pizza market. He observed chicken was the most rapidly expanding menu item in the international market.

Governance Friction

Sources suggest that there was disagreement between Rennie and the governance team over his approach and direction, although the company's official statement said he was departing “through mutual consent”.

New Product Introduction

In the autumn, the chain launched its Chick 'N' Dip brand – which Rennie referred to as a “significant new phase” for the company – and is testing it in over 200 locations in the North West region and the province.

While the business is still intending to launch it across its extensive network next year as intended, it regards chicken products as a supplement for its core pizza business.

Leadership Statement

Bull, the Domino's chairman, commented: “Directors think that there are a number of opportunities to drive further growth and performance improvement in our primary operations. We are focused on selecting the right chief executive to lead the careful implementation of that expansion plan.”

Market Challenges

Recently, the pizza delivery giant, which has 13 million customers in the UK and Ireland, said orders dipped by one and a half percent in the third quarter. In the summer, it alerted that the quick-service industry had “intensified” as it blamed weaker consumer confidence in the run-up to the budget and increasing labor expenses for below-target performance and a 15% drop in half-year profits.

Other pizza operators are also facing challenges. Another major chain disclosed the shutting of dozens of outlets a last month, after the firm behind its British operations fell into administration.

Wellness Efforts

Responding to customer preferences towards healthier eating, the company has rolled out light products, such as its thin-crust selection of bakes below 400 calories as well as meat-free and wheat-free options. A big pepperoni bake has over 2,300 kcal. A big margherita has over 2,100, while a small has under 1,000 calories.

Acting Leadership

Nicola Frampton has been with Domino's since the recent past, and previously worked for the betting firm a well-known operator. It is thought that she does not want to take on the top job long-term.

She commented: “We have a multiple active expansion and performance initiatives that we will be focused on implementing at speed.”

Frampton noted these included ongoing development on the company's logistics network and menu innovation, and its customer retention initiative.

Domino's is also in need of a permanent finance director until 16 March, when a new appointee joins from the Irish cider and beer maker C&C Group. Until then, Snow serves as interim finance chief.

Sarah Williamson
Sarah Williamson

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