Pizza Market Saturation? Domino's Leader Exits After Shift Towards Fried Chicken.
A head of the UK's Domino's Pizza chain who suggested the United Kingdom might have hit peak pizza while expanding the chain into chicken products has been removed after tensions with its governing body.
Leadership Shake-Up
The former CEO is leaving after only 24 months in leadership, and will be succeeded on an interim basis by the organization's chief operating officer, Nicola Frampton, while the pizza giant seeks a long-term chief.
Rennie, who was with Domino's for more than two decades, had sought to redirect the UK's largest pizza delivery company towards fried chicken, remarking earlier this month there was not “massive growth” left in the British pizza industry. He noted poultry was the most rapidly expanding protein in the world.
Board Disagreements
Sources suggest that there was friction between Rennie and the governance team over his strategy and management style, although the company's official statement said he was stepping down “as a joint decision”.
New Product Introduction
In the autumn, the chain launched its poultry brand – which the former chief called a “bold new chapter” for the company – and is trialling it in 210 outlets in the North West region and Northern Ireland.
While the company is still planning to expand it across its extensive network in the coming year as scheduled, it considers fried chicken as an addition to its main pizza offerings.
Leadership Statement
The Domino's chair, the company chairman, stated: “Directors think that there are a range of possibilities to enhance value and value creation in the main pizza segment. We are focused on finding the right chief executive to lead the disciplined execution of that development approach.”
Market Challenges
Recently, Domino's, which has millions of users in the British Isles, said sales fell by 1.5% in the Q3. In August, it alerted that the quick-service industry had “intensified” as it blamed reduced spending in the period before the government announcement and increasing labor expenses for disappointing revenue and a 15% drop in interim earnings.
Other pizza operators are also struggling. Another major chain revealed the closure of 68 restaurants a last month, after the firm behind its British operations entered insolvency.
Health Efforts
Adapting to consumer trends towards better nutrition, Domino's has introduced reduced-calorie items, such as its light base selection of pizzas below 400 kcals as well as plant-based and allergy-friendly pizzas. 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 Management
The interim chief 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 occupy the chief executive role on a full-time basis.
She commented: “We have a multiple ongoing growth and operational projects that we will be focused on carrying out at pace.”
She added these included ongoing development on the organization's logistics network and product development, and its customer retention initiative.
The pizza chain is also without a full-time chief financial officer until the spring, when a new appointee joins from the Irish cider and beer maker a well-known firm. For now, Snow acts as temporary CFO.