Pizza Market Saturation? Domino's Chief Executive Steps Down Following Move Into Chicken.

The boss of Domino's Pizza Group who proposed the UK might have hit maximum pizza demand while diversifying the franchise into fried chicken has been replaced after conflicts with its governing body.

Executive Shake-Up

The former CEO is departing after just two years in leadership, and will be succeeded on an acting basis by the company's chief operating officer, Nicola Frampton, while Domino's searches for a long-term chief.

The outgoing executive, who was with Domino's for over 20 years, had attempted to shift Britain's leading pizza delivery company towards chicken offerings, stating in a recent interview there was not “huge potential” left in the UK's pizza market. He said chicken was the fastest-growing menu item in the international market.

Governance Friction

Sources suggest that there was tension between Rennie and the board over his approach and business vision, although Domino's announcement said he was leaving “through mutual consent”.

Recent Brand Introduction

In the autumn, the chain unveiled its Chick 'N' Dip brand – which the former chief called a “bold new chapter” for the company – and is testing it in select stores in the north-west of England and Northern Ireland.

While the firm is still planning to expand it across its extensive network in the coming year as planned, it considers fried chicken as a supplement for its primary pizza operations.

Board Comment

Bull, the Domino's chair, stated: “We are confident that there are a number of opportunities to boost expansion and value creation in Domino's core business. We are focused on finding the right chief executive to direct the disciplined execution of that development approach.”

Industry Challenges

Earlier this month, the pizza delivery giant, which has 13 million customers in the British Isles, said orders declined by one and a half percent in the third quarter. In the summer, it cautioned that the takeaway market had “intensified” as it attributed weaker consumer confidence in the run-up to the government announcement and rising wage costs for weaker-than-expected sales and a 15% drop in interim earnings.

Other pizza operators are also facing challenges. Another major chain disclosed the closing of multiple locations a last month, after the firm behind its outlets faced financial collapse.

Wellness Efforts

Trying to keep up with market shifts towards balanced diets, the company has launched reduced-calorie items, such as its Thin & Crispy selection of pizzas below 400 calories as well as plant-based and allergy-friendly pizzas. A big pepperoni bake has 2,311 kcals. A large cheese and tomato pizza has 2,171, while a personal has 909 kcal.

Acting Leadership

The interim chief has been with the company since 2021, and previously worked for the gaming group a well-known operator. It is understood that she does not want to take on the CEO position permanently.

She commented: “Our team has a several active growth and performance initiatives that we will be focused on carrying out at speed.”

She added these comprised additional efforts on the company's logistics network and menu innovation, and its customer retention initiative.

The pizza chain is also lacking a full-time CFO until 16 March, when Andy Andrea starts from the Irish cider and beer maker a well-known firm. In the meantime, Richard Snow is acting financial officer.