Pizza Market Saturation? Domino's Leader Steps Down After Shift Into Fried Chicken.

The boss of the UK's Domino's Pizza chain who proposed the United Kingdom might have hit maximum pizza demand while broadening the company into chicken products has been replaced after disagreements with its board.

Leadership Change

The former CEO is leaving after only 24 months in charge, and will be replaced on an acting basis by the company's chief operating officer, Frampton, while the pizza giant searches for a new leader.

Rennie, who worked for the company for more than two decades, had attempted to shift Britain's largest pizza food delivery firm towards chicken offerings, stating in a recent interview there was not “significant expansion” left in the British pizza industry. He noted poultry was the quickest rising protein in the international market.

Governance Friction

Sources suggest that there was tension between the CEO and the governance team over his focus and direction, although the company's announcement said he was leaving “by mutual agreement”.

Recent Product Introduction

In September, the chain launched its chicken-focused product line – which the former chief called a “major strategic shift” for the organization – and is testing it in over 200 locations in the North West region and Northern Ireland.

While the business is still planning to expand it across its extensive network next year as planned, it regards fried chicken as an addition to its primary pizza operations.

Leadership Comment

The Domino's chair, the company chairman, stated: “The board believes that there are a range of possibilities to drive further growth and value creation in our primary operations. We are prioritizing selecting the right chief executive to lead the careful implementation of that growth strategy.”

Market Difficulties

Earlier this month, the pizza delivery giant, which has millions of users in the British Isles, said orders declined by 1.5 percent in the latest quarter. In the summer, it warned that the food delivery sector had “grown more challenging” as it blamed economic uncertainty in the period before the government announcement and higher payroll outlays for weaker-than-expected sales and a significant fall in interim earnings.

Rival chains are also experiencing difficulties. Pizza Hut revealed the closure of multiple locations a last month, after the business behind its outlets faced financial collapse.

Health Efforts

Adapting to market shifts towards healthier eating, the company has rolled out reduced-calorie items, such as its thin-crust selection of bakes below 400 kcal as well as vegan and gluten-free pizzas. A large pepperoni pizza has 2,311 calories. A big margherita has over 2,100, while a personal has 909 kcal.

Acting Leadership

Nicola Frampton has been with the company since the recent past, and previously worked for the gambling company William Hill. It is understood that she is not seeking to take on the CEO position on a full-time basis.

Frampton stated: “Our team has a multiple ongoing growth and operational projects that we will be concentrating on implementing at pace.”

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

Domino's is also in need of a long-term CFO until 16 March, when Andrea starts from the beverage producer C&C Group. For now, Richard Snow is acting financial officer.

Martin Rodriguez
Martin Rodriguez

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