Pizza Market Saturation? Domino's CEO Departs After Move Towards Chicken.
A boss of Domino's Pizza Group who proposed the UK might have reached peak pizza while diversifying the franchise into chicken products has been removed after tensions with its directors.
Leadership Shake-Up
Andrew Rennie is exiting after just two years in leadership, and will be replaced on an acting basis by the company's operations head, Nicola Frampton, while the pizza giant searches for a permanent CEO.
Rennie, who was with the company for a substantial period, had aimed to redirect the UK's largest pizza food delivery firm towards fried chicken, stating recently there was not “massive growth” left in the UK's pizza market. He said chicken was the fastest-growing menu item in the international market.
Governance Disagreements
Sources suggest that there was disagreement between the CEO and the directors over his strategy and business vision, although Domino's announcement said he was departing “through mutual consent”.
New Product Introduction
In the autumn, Domino's launched its Chick 'N' Dip brand – which the former chief described as a “significant new phase” for the organization – and is testing it in 210 outlets in the North West region and the province.
While the business is still intending to launch it across its almost 1,400 stores next year as planned, it considers chicken products as a supplement for its primary pizza operations.
Board Statement
The Domino's chair, the Domino's chairman, said: “We are confident that there are a range of possibilities to drive further growth and value creation in the main pizza segment. We are prioritizing selecting the ideal CEO to oversee the systematic rollout of that growth strategy.”
Industry Challenges
Earlier this month, the pizza delivery giant, which has 13 million customers in the British Isles, said orders fell by 1.5 percent in the latest quarter. In August, it warned that the food delivery sector had “become tougher” as it attributed reduced spending in the run-up to the government announcement and higher payroll outlays for weaker-than-expected sales and a 15 percent decline in interim earnings.
Other pizza operators are also facing challenges. Pizza Hut announced the closure of dozens of outlets a last month, after the firm behind its UK venues entered insolvency.
Health Efforts
Trying to keep up with consumer trends towards balanced diets, the company has introduced light options, such as its light base selection of bakes below 400 kcal as well as vegan and gluten-free options. A large pepperoni pizza has over 2,300 kcal. A big margherita has over 2,100, while a individual has 909 calories.
Interim Management
Frampton has been with the company since 2021, and was formerly with the betting firm William Hill. It is understood that she is not seeking to assume the chief executive role on a full-time basis.
She commented: “Our team has a several active development and operational projects that we will be focused on executing at pace.”
She said these comprised additional efforts on the organization's procurement system and product development, and its customer retention initiative.
The pizza chain is also without a permanent CFO until 16 March, when a new appointee starts from the beverage producer a well-known firm. For now, Snow serves as interim finance chief.