Pizza Market Saturation? Domino's Leader Departs After Move Towards Chicken.
A head of Domino's Pizza Group who suggested the United Kingdom might have reached pizza saturation while diversifying the franchise into fried chicken has been removed after conflicts with its directors.
Executive Shake-Up
Andrew Rennie is leaving after just two years in the top role, and will be replaced on an acting basis by the company's operations head, Nicola Frampton, while Domino's searches for a permanent CEO.
Rennie, who worked for Domino's for more than two decades, had sought to pivot the UK's leading pizza food delivery firm towards chicken offerings, remarking recently there was not “significant expansion” left in the British pizza industry. He observed chicken was the most rapidly expanding protein in the international market.
Governance Disagreements
It is understood that there was disagreement between Rennie and the directors over his approach and business vision, although the company's release said he was leaving “by mutual agreement”.
Recent Product Launch
In the autumn, Domino's launched its poultry offering – which the former chief called a “bold new chapter” for the organization – and is piloting it in select stores in the North West region and the province.
While the business is still going to roll it out across its extensive network in the coming year as scheduled, it views fried chicken as an addition to its core pizza business.
Board Statement
The Domino's chair, the Domino's chair, stated: “Directors think that there are a series of prospects to drive further growth and value creation in Domino's core business. We are prioritizing finding the right chief executive to lead the disciplined execution of that growth strategy.”
Industry Challenges
Earlier this month, Domino's, which has a substantial customer base in the British Isles, said orders fell by 1.5% in the latest quarter. In August, it alerted that the quick-service industry had “intensified” as it blamed weaker consumer confidence in the lead-up to the budget and increasing labor expenses for disappointing revenue and a significant fall in six-month income.
Rival chains are also facing challenges. Pizza Hut announced the shutting of multiple locations a month ago, after the company behind its UK venues fell into administration.
Health Efforts
Trying to keep up with consumer trends towards healthier eating, the company has launched lower-calorie products, such as its thin-crust range of pizzas below 400 kcals as well as meat-free and allergy-friendly pizzas. A big pepperoni bake has 2,311 calories. A big margherita has 2,171 kcal, while a personal has 909 kcal.
Acting Management
Nicola Frampton has been with the company since 2021, and was formerly with the betting firm a well-known operator. It is understood that she prefers not to occupy the top job on a full-time basis.
Frampton stated: “Our team has a multiple current expansion and operational projects that we will be focused on carrying out at a rapid rate.”
She added these involved ongoing development on the company's procurement system and new item creation, and its customer retention initiative.
Domino's is also without a long-term finance director until 16 March, when Andrea joins from the beverage producer a well-known firm. In the meantime, Snow serves as temporary CFO.