Pizza Market Saturation? Domino's Chief Executive Exits Following Shift Towards Fried Chicken.
The chief executive of Domino's Pizza Group who proposed the UK might have reached pizza saturation while broadening the chain into poultry items has been replaced after tensions with its directors.
Executive Change
Rennie is leaving after a brief tenure in leadership, and will be succeeded on an temporary basis by the company's chief operating officer, Nicola Frampton, while Domino's searches for a long-term chief.
Rennie, who served at the company for more than two decades, had sought to redirect the UK's biggest pizza delivery company towards poultry-based products, remarking earlier this month there was not âsignificant expansionâ left in the UK's pizza market. He said chicken was the most rapidly expanding menu item in the world.
Board Friction
Reports indicate that there was tension between Rennie and the board over his strategy and direction, although the company's announcement said he was leaving âby mutual agreementâ.
Recent Product Launch
In September, Domino's unveiled its chicken-focused brand â which Rennie referred to as a âmajor strategic shiftâ for the group â and is trialling it in 210 outlets in the North West region and the province.
While the company is still intending to launch it across its almost 1,400 stores in 2026 as scheduled, it regards fried chicken as an addition to its main pizza offerings.
Leadership Statement
Ian Bull, the Domino's chair, stated: âThe board believes that there are a range of possibilities to drive further growth and profitability in Domino's core business. We are focused on finding the suitable leader to lead the disciplined execution of that expansion plan.â
Market Difficulties
In the latest update, Domino's, which has 13 million customers in the British Isles, said orders dipped by 1.5% in the third quarter. In the summer, it warned that the food delivery sector had âbecome tougherâ as it blamed economic uncertainty in the lead-up to the budget and rising wage costs for disappointing revenue and a 15 percent decline in six-month income.
Other pizza operators are also experiencing difficulties. Another major chain revealed the shutting of dozens of outlets a month ago, after the business behind its UK venues entered insolvency.
Health Initiatives
Responding to consumer trends towards healthier eating, Domino's has introduced light items, such as its thin-crust range of pizzas below 400 kcals as well as vegan and allergy-friendly options. A large pepperoni pizza has 2,311 calories. A family cheese pizza has 2,171, while a personal has 909 kcal.
Interim Management
The interim chief has been with Domino's since the recent past, and previously worked for the betting firm a well-known operator. It is believed that she does not want to assume the chief executive role on a full-time basis.
She said: âWe have a multiple active growth and operational projects that we will be dedicated to carrying out at pace.â
She added these comprised additional efforts on the company's logistics network and new item creation, and its customer retention initiative.
Domino's is also without a full-time chief financial officer until March 16, when Andy Andrea comes aboard from the Irish cider and beer maker C&C Group. Until then, Snow acts as acting financial officer.