Pizza Market Saturation? Domino's CEO Exits After Move Towards Fried Chicken.

A chief executive of the UK's Domino's Pizza chain who proposed the United Kingdom might have reached peak pizza while diversifying the franchise into poultry items has been removed after disagreements with its board.

Leadership Change

Andrew Rennie is exiting after a brief tenure in leadership, and will be replaced on an acting basis by the organization's operations head, Nicola Frampton, while the pizza giant searches for a permanent CEO.

The outgoing executive, who worked for Domino's for over 20 years, had sought to shift the UK's biggest pizza food delivery firm towards fried chicken, remarking in a recent interview there was not “significant expansion” left in the pizza sector in the UK. He noted poultry was the most rapidly expanding protein in the globe.

Governance Friction

Sources suggest that there was tension between the CEO and the directors over his approach and management style, although the company's official statement said he was leaving “through mutual consent”.

New Product Introduction

In the autumn, Domino's introduced its poultry brand – which Rennie described as a “bold new chapter” for the organization – and is testing it in select stores in the North West region and the province.

While the business is still going to roll it out across its nearly 1,400 branches in the coming year as planned, it considers chicken products as an addition to its primary pizza operations.

Leadership Comment

The Domino's chair, the company chair, commented: “We are confident that there are a series of prospects to boost expansion and performance improvement in Domino's core business. We are concentrating on finding the ideal CEO to direct the careful implementation of that expansion plan.”

Market Challenges

In the latest update, Domino's, which has 13 million customers in the British Isles, said orders fell by one and a half percent in the Q3. In August, it alerted that the takeaway market had “become tougher” as it attributed weaker consumer confidence in the period before the budget and rising wage costs for disappointing revenue and a 15% drop in half-year profits.

Competitors are also struggling. Another major chain disclosed the closure of 68 restaurants a month ago, after the firm behind its UK venues entered insolvency.

Wellness Initiatives

Adapting to market shifts towards healthier eating, the company has rolled out reduced-calorie products, such as its thin-crust line of bakes below 400 calories as well as plant-based and wheat-free options. A large pepperoni pizza has over 2,300 kcal. A big margherita has 2,171, while a individual has 909 calories.

Acting Management

The interim chief has been with Domino's since 2021, and had a background at the betting firm a well-known operator. It is understood that she prefers not to take on the top job permanently.

Frampton stated: “The company has a multiple ongoing development and operational projects that we will be dedicated to executing at a rapid rate.”

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

The pizza chain is also lacking a full-time CFO until March 16, when Andrea comes aboard from the drinks company C&C Group. In the meantime, Snow acts as interim finance chief.

Alicia Tanner
Alicia Tanner

Elena is a seasoned journalist and blogger with a passion for uncovering stories that matter to everyday life in the UK.