Pizza Market Saturation? Domino's Leader Exits Following Shift Towards Chicken.
A boss of the UK's Domino's Pizza chain who proposed the UK might have reached pizza saturation while diversifying the company into chicken products has been ousted after disagreements with its board.
Executive Transition
Rennie is exiting after a brief tenure in the top role, and will be succeeded on an temporary basis by the company's operations head, Frampton, while the pizza giant seeks a new leader.
The outgoing executive, who was with the company for a substantial period, had attempted to pivot the UK's largest pizza food delivery firm towards chicken offerings, remarking recently there was not “huge potential” left in the UK's pizza market. He noted poultry was the fastest-growing food category in the world.
Governance Disagreements
It is understood that there was disagreement between the CEO and the directors over his strategy and direction, although the company's release said he was leaving “by mutual agreement”.
Recent Product Launch
In September, the chain launched its Chick 'N' Dip brand – which Rennie referred to as a “significant new phase” for the organization – and is piloting it in over 200 locations in the north-west of England and the province.
While the business is still intending to launch it across its nearly 1,400 branches next year as scheduled, it views fried chicken as a supplement for its core pizza business.
Board Statement
Bull, the Domino's chair, said: “Directors think that there are a series of prospects to boost expansion and profitability in the main pizza segment. We are prioritizing finding the suitable leader to oversee the careful implementation of that expansion plan.”
Market Difficulties
Earlier this month, Domino's, which has 13 million customers in the British Isles, said sales dipped by 1.5% in the latest quarter. In the summer, it alerted that the quick-service industry had “become tougher” as it blamed weaker consumer confidence in the period before the government announcement and increasing labor expenses for below-target performance and a significant fall in interim earnings.
Competitors are also experiencing difficulties. Pizza Hut announced the closure of multiple locations a recently, after the company behind its UK venues fell into administration.
Health Efforts
Trying to keep up with consumer trends towards better nutrition, the company has launched light products, such as its Thin & Crispy selection of pizzas below 400 kcals as well as vegan and gluten-free pizzas. A big pepperoni bake has over 2,300 kcal. A large cheese and tomato pizza has over 2,100, while a individual has under 1,000 calories.
Interim Leadership
Frampton has been with Domino's since 2021, and previously worked for the gaming group a well-known operator. It is understood that she prefers not to occupy the top job permanently.
She commented: “Our team has a several current development and operational projects that we will be concentrating on carrying out at a rapid rate.”
Frampton noted these comprised ongoing development on the organization's logistics network and product development, and its rewards program.
Domino's is also in need of a full-time finance director until March 16, when a new appointee comes aboard from the Irish cider and beer maker C&C Group. In the meantime, Snow serves as acting financial officer.