Pizza Market Saturation? Domino's Pizza Chief Executive Steps Down After Shift Towards Chicken.
A boss of Domino's Pizza Group who proposed the United Kingdom might have reached peak pizza while broadening the chain into fried chicken has been ousted after tensions with its directors.
Leadership Shake-Up
Rennie is departing after just two years in charge, and will be replaced on an interim basis by the organization's chief operating officer, Frampton, while Domino's searches for a permanent CEO.
Rennie, who worked for Domino's for a substantial period, had sought to pivot Britain's biggest pizza food delivery firm towards fried chicken, remarking recently there was not “massive growth” left in the British pizza industry. He noted chicken was the fastest-growing food category in the world.
Board Friction
It is understood that there was disagreement between the CEO and the governance team over his strategy and direction, although the company's release said he was leaving “by mutual agreement”.
New Product Launch
In the autumn, the chain unveiled its Chick 'N' Dip offering – which the former chief described as a “major strategic shift” for the group – and is piloting it in select stores in the North West region and Northern Ireland.
While the company is still planning to expand it across its almost 1,400 stores next year as scheduled, it regards chicken products as an addition to its primary pizza operations.
Leadership Comment
Ian Bull, the Domino's chairman, stated: “The board believes that there are a range of possibilities to enhance value and value creation in Domino's core business. We are focused on identifying the ideal CEO to lead the disciplined execution of that growth strategy.”
Industry Difficulties
In the latest update, the pizza delivery giant, which has 13 million customers in the UK and Ireland, said orders fell by 1.5% in the third quarter. In August, it cautioned that the food delivery sector had “intensified” as it blamed economic uncertainty in the lead-up to the government announcement and higher payroll outlays for below-target performance and a significant fall in six-month income.
Rival chains are also facing challenges. Pizza Hut revealed the shutting of dozens of outlets a last month, after the company behind its outlets faced financial collapse.
Wellness Efforts
Trying to keep up with market shifts towards better nutrition, Domino's has introduced light options, such as its thin-crust line of bakes below 400 kcal as well as plant-based and allergy-friendly options. A family-sized pepperoni has 2,311 calories. A family cheese pizza has 2,171 kcal, while a individual has under 1,000 calories.
Interim Leadership
The interim chief has been with the company since 2021, and had a background at the gaming group a well-known operator. It is thought that she does not want to occupy the top job permanently.
She commented: “We have a number of ongoing expansion and operational projects that we will be focused on carrying out at speed.”
She said these involved further work on the organization's supply chain and menu innovation, and its customer retention initiative.
The pizza chain is also without a long-term finance director until the spring, when Andy Andrea joins from the beverage producer C&C Group. Until then, Snow serves as interim finance chief.