Pizza Market Saturation? Domino's CEO Steps Down Following Move Into Chicken.

A chief executive of Domino's Pizza Group who proposed the UK might have reached peak pizza while diversifying the chain into fried chicken has been ousted after disagreements with its board.

Executive Change

Rennie is exiting after a brief tenure in the top role, and will be succeeded on an temporary basis by the organization's chief operating officer, Frampton, while Domino's searches for a new leader.

The outgoing executive, who served at Domino's for over 20 years, had sought to shift the UK's largest pizza takeaway chain towards poultry-based products, stating earlier this month there was not “significant expansion” left in the British pizza industry. He said poultry was the most rapidly expanding protein in the international market.

Board Friction

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

Recent Brand Introduction

In September, Domino's introduced its poultry product line – which the former chief referred to as a “significant new phase” for the organization – and is testing it in over 200 locations in the North West region and the province.

While the business is still intending to launch it across its nearly 1,400 branches next year as scheduled, it views chicken products as complementary to its core pizza business.

Board Comment

Ian Bull, the company chairman, stated: “The board believes that there are a number of opportunities to boost expansion and profitability in Domino's core business. We are prioritizing finding the suitable leader to oversee the systematic rollout of that growth strategy.”

Market Difficulties

Recently, the pizza delivery giant, which has a substantial customer base in the UK and Ireland, said orders fell by one and a half percent in the latest quarter. In August, it warned that the takeaway market had “grown more challenging” as it attributed weaker consumer confidence in the period before the government announcement and increasing labor expenses for disappointing revenue and a significant fall in half-year profits.

Other pizza operators are also struggling. Pizza Hut disclosed the closing of dozens of outlets a last month, after the company behind its outlets faced financial collapse.

Wellness Initiatives

Responding to customer preferences towards healthier eating, Domino's has rolled out lower-calorie products, such as its light base line of bakes below 400 kcals as well as meat-free and wheat-free options. A large pepperoni pizza has over 2,300 kcal. A family cheese pizza has over 2,100, while a small has under 1,000 calories.

Acting Management

Frampton has been with the company since the recent past, and previously worked for the gambling company William Hill. It is believed that she is not seeking to assume the top job long-term.

Frampton stated: “Our team has a number of active expansion and efficiency programs that we will be concentrating on executing at speed.”

She added these included further work on the company's supply chain and product development, and its loyalty scheme.

The pizza chain is also lacking a long-term chief financial officer until the spring, when Andrea starts from the drinks company a well-known firm. Until then, Snow serves as temporary CFO.

Debbie Martin
Debbie Martin

A passionate digital marketer and writer with over a decade of experience in helping bloggers reach their goals.

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