Pizza Market Saturation? Domino's CEO Steps Down After Shift Towards Fried Chicken.

A head of Domino's Pizza Group who indicated the United Kingdom might have hit pizza saturation while diversifying the chain into chicken products has been removed after disagreements with its board.

Leadership Transition

Andrew Rennie is leaving after a brief tenure in the top role, and will be succeeded on an interim basis by the company's operations head, Frampton, while Domino's looks for a new leader.

The outgoing executive, who served at the company for over 20 years, had attempted to shift Britain's leading pizza delivery company towards fried chicken, remarking earlier this month there was not “massive growth” left in the UK's pizza market. He observed chicken was the fastest-growing protein in the globe.

Board Disagreements

Reports indicate that there was tension between the CEO and the governance team over his approach and business vision, although the company's release said he was departing “by mutual agreement”.

New Product Introduction

In the autumn, the chain unveiled its poultry offering – which the former chief referred to as a “major strategic shift” for the group – and is trialling it in select stores in the North West region and Northern Ireland.

While the firm is still intending to launch it across its almost 1,400 stores in the coming year as scheduled, it considers chicken products as an addition to its core pizza business.

Board Comment

Bull, the Domino's chair, stated: “Directors think that there are a number of opportunities to boost expansion and performance improvement in Domino's core business. We are focused on identifying the suitable leader to oversee the disciplined execution of that expansion plan.”

Market Challenges

Earlier this month, the pizza delivery giant, which has 13 million customers in the UK and Ireland, said orders fell by 1.5 percent in the Q3. In August, it warned that the takeaway market had “grown more challenging” as it attributed reduced spending in the run-up to the government announcement and rising wage costs for weaker-than-expected sales and a 15% drop in half-year profits.

Competitors are also experiencing difficulties. Another major chain disclosed the shutting of multiple locations a recently, after the business behind its British operations entered insolvency.

Wellness Efforts

Responding to market shifts towards better nutrition, Domino's has rolled out light items, such as its thin-crust line of pizzas below 400 kcals as well as meat-free and wheat-free pizzas. A large pepperoni pizza has 2,311 calories. A large cheese and tomato pizza has 2,171 kcal, while a small has 909 calories.

Interim Management

Frampton has been with Domino's since 2021, and had a background at the gaming group a well-known operator. It is understood that she prefers not to take on the top job on a full-time basis.

She commented: “Our team has a number of active growth and efficiency programs that we will be focused on implementing at pace.”

Frampton noted these involved further work on the company's supply chain and product development, and its customer retention initiative.

Domino's is also lacking a long-term chief financial officer until March 16, when Andrea comes aboard from the beverage producer C&C Group. Until then, Snow acts as temporary CFO.