Pizza Market Saturation? Domino's Pizza Chief Executive Departs Following Pivot Into Chicken.
A boss of Domino's Pizza Group who suggested the UK might have reached peak pizza while expanding the franchise into poultry items has been ousted after conflicts with its directors.
Leadership Change
Andrew Rennie is departing after a brief tenure in leadership, and will be succeeded on an interim basis by the organization's chief operating officer, Nicola Frampton, while Domino's looks for a permanent CEO.
Rennie, who served at the company for more than two decades, had attempted to redirect Britain's leading pizza food delivery firm towards chicken offerings, commenting in a recent interview there was not “massive growth” left in the British pizza industry. He noted chicken was the quickest rising menu item in the globe.
Board Tensions
It is understood that there was tension between Rennie and the governance team over his strategy and direction, although Domino's official statement said he was departing “through mutual consent”.
New Product Launch
In the autumn, Domino's introduced its Chick 'N' Dip brand – which Rennie called a “bold new chapter” for the organization – and is testing it in over 200 locations in the north-west of England and the province.
While the firm is still going to roll it out across its extensive network next year as intended, it considers chicken products as an addition to its main pizza offerings.
Leadership Comment
Ian Bull, the Domino's chairman, stated: “We are confident that there are a number of opportunities to enhance value and profitability in Domino's core business. We are prioritizing selecting the ideal CEO to oversee the systematic rollout of that expansion plan.”
Market Challenges
In the latest update, the pizza delivery giant, which has a substantial customer base in the UK and Ireland, said transactions fell by one and a half percent in the Q3. In August, it alerted that the takeaway market had “become tougher” as it attributed reduced spending in the period before the budget and higher payroll outlays for weaker-than-expected sales and a significant fall in six-month income.
Other pizza operators are also facing challenges. Pizza Hut announced the shutting of dozens of outlets a last month, after the business behind its British operations entered insolvency.
Wellness Initiatives
Responding to customer preferences towards better nutrition, Domino's has introduced light items, such as its Thin & Crispy selection of bakes below 400 kcals as well as plant-based and wheat-free options. A family-sized pepperoni has over 2,300 kcal. A family cheese pizza has 2,171 kcal, while a small has under 1,000 calories.
Acting Management
Frampton has been with the company since 2021, and had a background at the gaming group William Hill. It is understood that she is not seeking to take on the CEO position permanently.
She said: “We have a number of ongoing development and performance initiatives that we will be focused on implementing at a rapid rate.”
She said these included additional efforts on the company's logistics network and new item creation, and its rewards program.
The pizza chain is also in need of a full-time chief financial officer until 16 March, when Andy Andrea starts from the beverage producer C&C Group. For now, Richard Snow acts as acting financial officer.