Pizza Market Saturation? Domino's Leader Steps Down Following Pivot Towards Chicken.

The boss of Domino's Pizza Group who proposed the United Kingdom might have reached peak pizza while expanding the company into poultry items has been removed after disagreements with its governing body.

Leadership Shake-Up

Rennie is departing after just two years in charge, and will be succeeded on an interim basis by the company's operations head, Frampton, while Domino's seeks a long-term chief.

The outgoing executive, who was with the company for more than two decades, had aimed to pivot the UK's largest pizza delivery company towards fried chicken, remarking in a recent interview there was not “huge potential” left in the pizza sector in the UK. He noted chicken was the most rapidly expanding protein in the world.

Governance Friction

Sources suggest that there was disagreement between the CEO and the governance team over his strategy and direction, although the company's release said he was stepping down “as a joint decision”.

New Brand Introduction

In the autumn, the chain introduced its poultry brand – which the former chief called a “major strategic shift” for the group – and is trialling it in over 200 locations in the North West region and Northern Ireland.

While the business is still intending to launch it across its nearly 1,400 branches in the coming year as intended, it considers chicken products as an addition to its primary pizza operations.

Board Comment

The Domino's chair, the company chair, said: “The board believes that there are a series of prospects to enhance value and profitability in our primary operations. We are prioritizing finding the ideal CEO to direct the systematic rollout of that growth strategy.”

Industry Difficulties

Recently, Domino's, which has 13 million customers in the UK and Ireland, said sales declined by 1.5% in the latest quarter. In August, it cautioned that the food delivery sector had “intensified” as it blamed economic uncertainty in the run-up to the budget and higher payroll outlays for below-target performance and a 15% drop in half-year profits.

Rival chains are also struggling. Another major chain disclosed the closing of 68 restaurants a last month, after the business behind its British operations entered insolvency.

Wellness Efforts

Trying to keep up with market shifts towards healthier eating, Domino's has launched reduced-calorie options, such as its thin-crust selection of bakes below 400 kcal as well as meat-free and allergy-friendly pizzas. A family-sized pepperoni has 2,311 calories. A family cheese pizza has 2,171, while a small has 909 calories.

Acting Management

Nicola Frampton has been with the company since the recent past, and previously worked for the gambling company William Hill. It is thought that she prefers not to assume the chief executive role permanently.

Frampton stated: “The company has a multiple ongoing expansion and operational projects that we will be concentrating on implementing at a rapid rate.”

She added these included further work on the organization's procurement system and product development, and its rewards program.

The pizza chain is also without a long-term finance director until the spring, when a new appointee joins from the drinks company a well-known firm. Until then, Richard Snow acts as temporary CFO.