Pizza Market Saturation? Domino's Pizza Chief Executive Steps Down Following Move Into Fried Chicken.

A boss of the UK's Domino's Pizza chain who proposed the UK might have hit pizza saturation while expanding the chain into fried chicken has been ousted after conflicts with its directors.

Executive Change

Rennie is departing after only 24 months in charge, and will be succeeded on an interim basis by the organization's operations head, Nicola Frampton, while Domino's looks for a long-term chief.

Rennie, who worked for the company for a substantial period, had attempted to pivot Britain's biggest pizza delivery company towards fried chicken, commenting earlier this month there was not “significant expansion” left in the pizza sector in the UK. He said poultry was the quickest rising protein in the international market.

Board Tensions

Reports indicate that there was friction between Rennie and the governance team over his strategy and management style, although the company's announcement said he was stepping down “by mutual agreement”.

Recent Brand Launch

In the autumn, the chain introduced its Chick 'N' Dip product line – which the former chief called a “bold new chapter” for the organization – and is piloting it in 210 outlets in the North West region and Northern Ireland.

While the company is still going to roll it out across its almost 1,400 stores in the coming year as scheduled, it regards chicken products as a supplement for its main pizza offerings.

Board Comment

Ian Bull, the Domino's chair, stated: “The board believes that there are a series of prospects to drive further growth and value creation in the main pizza segment. We are prioritizing selecting the ideal CEO to direct the disciplined execution of that expansion plan.”

Industry Difficulties

In the latest update, the pizza delivery giant, which has millions of users in the British Isles, said transactions dipped by one and a half percent in the third quarter. In the summer, it cautioned that the takeaway market had “intensified” as it blamed reduced spending in the period before the budget and higher payroll outlays for disappointing revenue and a 15 percent decline in half-year profits.

Other pizza operators are also facing challenges. Pizza Hut announced the closure of dozens of outlets a recently, after the business behind its outlets fell into administration.

Wellness Efforts

Adapting to market shifts towards better nutrition, the company has rolled out lower-calorie items, such as its light base range of bakes below 400 kcals as well as vegan and gluten-free pizzas. A big pepperoni bake has 2,311 kcals. A large cheese and tomato pizza has over 2,100, while a small has under 1,000 calories.

Acting Leadership

Frampton has been with Domino's since the recent past, and previously worked for the gambling company a well-known operator. It is believed that she is not seeking to occupy the chief executive role permanently.

Frampton stated: “We have a several ongoing development and efficiency programs that we will be dedicated to executing at a rapid rate.”

She added these comprised additional efforts on the organization's logistics network and new item creation, and its rewards program.

The pizza chain is also lacking a full-time chief financial officer until March 16, when a new appointee starts from the Irish cider and beer maker C&C Group. Until then, Snow serves as temporary CFO.

Alicia Pierce
Alicia Pierce

A passionate gamer and tech writer with over a decade of experience covering the latest trends in the gaming industry.