Pizza Market Saturation? Domino's Pizza Chief Executive Departs After Pivot Into Chicken.

The boss of Domino's Pizza Group who suggested the United Kingdom might have reached maximum pizza demand while expanding the chain into poultry items has been replaced after conflicts with its directors.

Executive Shake-Up

The former CEO is departing after just two years in leadership, and will be succeeded on an temporary basis by the company's operations head, Frampton, while Domino's searches for a permanent CEO.

Rennie, who worked for the company for over 20 years, had sought to shift Britain's largest pizza takeaway chain towards fried chicken, remarking recently there was not “massive growth” left in the pizza sector in the UK. He noted poultry was the quickest rising menu item in the world.

Board Friction

Sources suggest that there was friction between Rennie and the board over his focus and business vision, although the company's official statement said he was leaving “through mutual consent”.

Recent Product Introduction

In the autumn, the chain unveiled its Chick 'N' Dip brand – which Rennie described as a “significant new phase” for the organization – and is piloting it in over 200 locations in the North West region and Northern Ireland.

While the firm is still going to roll it out across its almost 1,400 stores next year as scheduled, it views chicken products as an addition to its primary pizza operations.

Leadership Comment

The Domino's chair, the company chair, commented: “The board believes that there are a number of opportunities to boost expansion and value creation in our primary operations. We are focused on selecting the right chief executive to oversee the disciplined execution of that expansion plan.”

Industry Challenges

In the latest update, the pizza delivery giant, which has 13 million customers in the British Isles, said transactions declined by one and a half percent in the Q3. In the summer, it warned that the food delivery sector had “grown more challenging” as it blamed economic uncertainty in the run-up to the government announcement and higher payroll outlays for disappointing revenue and a significant fall in half-year profits.

Other pizza operators are also experiencing difficulties. Another major chain disclosed the closure of 68 restaurants a month ago, after the firm behind its UK venues faced financial collapse.

Wellness Efforts

Responding to market shifts towards healthier eating, Domino's has rolled out reduced-calorie items, such as its light base selection of pizzas below 400 kcal as well as plant-based and allergy-friendly pizzas. A large pepperoni pizza has 2,311 kcals. A large cheese and tomato pizza has 2,171 kcal, while a individual has under 1,000 calories.

Acting Leadership

Nicola Frampton has been with the company since the recent past, and previously worked for the gaming group a well-known operator. It is understood that she does not want to occupy the top job permanently.

Frampton stated: “Our team has a multiple current expansion and operational projects that we will be dedicated to implementing at pace.”

She said these comprised ongoing development on the organization's supply chain and product development, and its customer retention initiative.

Domino's is also lacking a permanent finance director until 16 March, when Andy Andrea joins from the beverage producer a well-known firm. In the meantime, Snow acts as temporary CFO.