Pizza Market Saturation? Domino's Chief Executive Steps Down After Pivot Towards Fried Chicken.
A head of Domino's Pizza Group who suggested the United Kingdom might have reached peak pizza while expanding the franchise into poultry items has been replaced after conflicts with its governing body.
Leadership Transition
The former CEO is exiting after just two years in leadership, and will be succeeded on an interim basis by the organization's chief operating officer, Frampton, while the pizza giant seeks a new leader.
Rennie, who served at Domino's for more than two decades, had sought to pivot Britain's biggest pizza food delivery firm towards poultry-based products, stating in a recent interview there was not “significant expansion” left in the British pizza industry. He noted chicken was the fastest-growing menu item in the international market.
Board Tensions
Reports indicate that there was friction between Rennie and the directors over his approach and direction, although the company's official statement said he was departing “by mutual agreement”.
Recent Brand Launch
In September, the chain launched its Chick 'N' Dip brand – which the former chief referred to as a “significant new phase” for the group – and is trialling it in 210 outlets in the north-west of England and Northern Ireland.
While the firm is still intending to launch it across its nearly 1,400 branches in 2026 as intended, it regards chicken products as an addition to its core pizza business.
Board Comment
Bull, the Domino's chair, commented: “Directors think that there are a number of opportunities to enhance value and profitability in our primary operations. We are prioritizing finding the ideal CEO to oversee the systematic rollout of that expansion plan.”
Market Difficulties
Earlier this month, Domino's, which has a substantial customer base in the British Isles, said orders dipped by 1.5% in the latest quarter. In the summer, it warned that the food delivery sector had “intensified” as it blamed economic uncertainty in the period before the government announcement and increasing labor expenses for weaker-than-expected sales and a significant fall in interim earnings.
Rival chains are also experiencing difficulties. Another major chain announced the closing of 68 restaurants a last month, after the business behind its UK venues fell into administration.
Wellness Efforts
Trying to keep up with consumer trends towards better nutrition, the company has rolled out lower-calorie options, such as its Thin & Crispy selection of pizzas below 400 calories as well as meat-free and gluten-free options. A large pepperoni pizza has over 2,300 kcal. A family cheese pizza has over 2,100, while a personal has under 1,000 calories.
Acting Leadership
Nicola Frampton has been with Domino's since 2021, and previously worked for the betting firm William Hill. It is understood that she is not seeking to assume the CEO position long-term.
Frampton stated: “Our team has a several active growth and efficiency programs that we will be concentrating on carrying out at pace.”
She said these involved additional efforts on the company's logistics network and new item creation, and its rewards program.
Domino's is also in need of a permanent finance director until March 16, when Andrea joins from the drinks company C&C Group. Until then, Snow acts as acting financial officer.