Pizza Market Saturation? Domino's Pizza Chief Executive Exits Following Shift Towards Chicken.
A head of the UK's Domino's Pizza chain who indicated the United Kingdom might have reached maximum pizza demand while diversifying the franchise into chicken products has been replaced after conflicts with its board.
Executive Shake-Up
The former CEO is exiting after only 24 months in charge, and will be succeeded on an acting basis by the company's chief operating officer, Frampton, while Domino's searches for a permanent CEO.
The outgoing executive, who was with Domino's for over 20 years, had attempted to redirect Britain's leading pizza food delivery firm towards fried chicken, stating in a recent interview there was not “huge potential” left in the pizza sector in the UK. He noted poultry was the quickest rising food category in the world.
Board Tensions
Sources suggest that there was disagreement between Rennie and the directors over his strategy and direction, although the company's release said he was stepping down “through mutual consent”.
New Brand Introduction
In the autumn, the chain launched its Chick 'N' Dip brand – which Rennie described as a “major strategic shift” for the group – and is piloting it in 210 outlets in the north-west of England and the province.
While the company is still intending to launch it across its nearly 1,400 branches next year as intended, it regards fried chicken as a supplement for its core pizza business.
Board Statement
The Domino's chair, the Domino's chairman, stated: “Directors think that there are a series of prospects to drive further growth and performance improvement in our primary operations. We are concentrating on identifying the right chief executive to direct the careful implementation of that growth strategy.”
Industry Difficulties
In the latest update, the pizza delivery giant, which has a substantial customer base in the British Isles, said orders fell by one and a half percent in the latest quarter. In the summer, it warned that the food delivery sector had “grown more challenging” as it attributed reduced spending in the run-up to the budget and increasing labor expenses for disappointing revenue and a 15% drop in half-year profits.
Other pizza operators are also struggling. Another major chain disclosed the shutting of dozens of outlets a month ago, after the business behind its UK venues faced financial collapse.
Health Initiatives
Adapting to market shifts towards balanced diets, the company has introduced lower-calorie products, such as its light base range of pizzas below 400 calories as well as meat-free and allergy-friendly options. A large pepperoni pizza has over 2,300 kcal. A big margherita has 2,171, while a personal has 909 kcal.
Interim Leadership
Frampton has been with Domino's since 2021, and was formerly with the betting firm a well-known operator. It is understood that she prefers not to assume the CEO position on a full-time basis.
Frampton stated: “Our team has a multiple current development and operational projects that we will be focused on executing at a rapid rate.”
Frampton noted these involved ongoing development on the company's logistics network and new item creation, and its customer retention initiative.
The pizza chain is also in need of a long-term finance director until 16 March, when Andrea starts from the drinks company C&C Group. In the meantime, Richard Snow serves as interim finance chief.