Pizza Market Saturation? Domino's Pizza CEO Exits After Pivot Towards Chicken.
The head of Domino's Pizza Group who indicated the UK might have hit pizza saturation while broadening the franchise into poultry items has been ousted after tensions with its directors.
Executive Change
The former CEO is leaving after a brief tenure in charge, and will be replaced on an acting basis by the company's operations head, Nicola Frampton, while Domino's looks for a permanent CEO.
Rennie, who worked for Domino's for more than two decades, had aimed to pivot Britain's leading pizza takeaway chain towards fried chicken, remarking in a recent interview there was not “huge potential” left in the UK's pizza market. He noted chicken was the quickest rising food category in the globe.
Board Friction
It is understood that there was friction between the CEO and the board over his strategy and business vision, although the company's announcement said he was leaving “by mutual agreement”.
Recent Product Launch
In September, the chain introduced its Chick 'N' Dip brand – which the former chief called a “significant new phase” for the company – and is testing it in select stores in the north-west of England and Northern Ireland.
While the company is still planning to expand it across its nearly 1,400 branches in 2026 as scheduled, it regards fried chicken as an addition to its core pizza business.
Board Statement
Ian Bull, the company chair, said: “We are confident that there are a series of prospects to enhance value and performance improvement in Domino's core business. We are focused on identifying the suitable leader to direct the disciplined execution of that expansion plan.”
Industry Difficulties
Recently, Domino's, which has a substantial customer base in the British Isles, said sales declined by 1.5% in the third quarter. In the summer, it warned that the takeaway market had “become tougher” as it blamed weaker consumer confidence in the lead-up to the government announcement and increasing labor expenses for disappointing revenue and a significant fall in six-month income.
Rival chains are also experiencing difficulties. Another major chain announced the closure of dozens of outlets a recently, after the company behind its British operations fell into administration.
Wellness Efforts
Adapting to market shifts towards balanced diets, the company has introduced light options, such as its Thin & Crispy line of pizzas below 400 kcals as well as meat-free and wheat-free pizzas. A big pepperoni bake has 2,311 kcals. A big margherita has over 2,100, while a personal has 909 kcal.
Acting Management
Nicola Frampton has been with Domino's since 2021, and previously worked for the gambling company a well-known operator. It is understood that she prefers not to assume the top job permanently.
Frampton stated: “We have a multiple active expansion and operational projects that we will be dedicated to carrying out at pace.”
She said these comprised further work on the organization's logistics network and product development, and its customer retention initiative.
Domino's is also in need of a permanent CFO until the spring, when Andrea joins from the Irish cider and beer maker C&C Group. Until then, Richard Snow serves as temporary CFO.