Pizza Market Saturation? Domino's Pizza Leader Exits After Shift Towards Fried Chicken.

A chief executive of Domino's Pizza Group who indicated the UK might have reached peak pizza while expanding the chain into poultry items has been removed after tensions with its directors.

Leadership Change

Andrew Rennie is leaving after a brief tenure in leadership, and will be replaced on an temporary basis by the company's chief operating officer, Nicola Frampton, while Domino's searches for a permanent CEO.

The outgoing executive, who worked for Domino's for over 20 years, had sought to shift the UK's biggest pizza takeaway chain towards chicken offerings, commenting recently there was not “massive growth” left in the British pizza industry. He observed poultry was the fastest-growing food category in the world.

Board Tensions

It is understood that there was friction between Rennie and the directors over his focus and direction, although Domino's release said he was stepping down “by mutual agreement”.

New Brand Introduction

In the autumn, the chain introduced its poultry product line – which Rennie described as a “bold new chapter” for the group – and is trialling it in 210 outlets in the North West region and the province.

While the firm is still intending to launch it across its extensive network next year as intended, it regards fried chicken as an addition to its main pizza offerings.

Board Comment

The Domino's chair, the Domino's chairman, stated: “Directors think that there are a series of prospects to drive further growth and performance improvement in the main pizza segment. We are focused on finding the suitable leader to direct the disciplined execution of that development approach.”

Market Difficulties

Recently, Domino's, which has millions of users in the British Isles, said transactions fell by 1.5 percent in the latest quarter. In August, it alerted that the quick-service industry had “become tougher” as it attributed weaker consumer confidence in the lead-up to the government announcement and rising wage costs for weaker-than-expected sales and a 15% drop in half-year profits.

Rival chains are also experiencing difficulties. Pizza Hut announced the closure of dozens of outlets a month ago, after the business behind its UK venues entered insolvency.

Wellness Initiatives

Responding to market shifts towards balanced diets, the company has introduced lower-calorie items, such as its thin-crust line of pizzas below 400 kcal as well as vegan and gluten-free pizzas. A large pepperoni pizza has over 2,300 kcal. A big margherita has over 2,100, while a personal has 909 calories.

Acting Management

The interim chief has been with Domino's since 2021, and was formerly with the gambling company a well-known operator. It is thought that she prefers not to assume the chief executive role on a full-time basis.

She commented: “The company has a multiple active development and performance initiatives that we will be focused on carrying out at speed.”

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

The pizza chain is also lacking a long-term CFO until the spring, when Andrea starts from the drinks company a well-known firm. In the meantime, Richard Snow is temporary CFO.

Paul Miller
Paul Miller

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