Pizza Market Saturation? Domino's Pizza Leader Departs Following Shift Towards Chicken.
A boss of Domino's Pizza Group who suggested the United Kingdom might have reached maximum pizza demand while broadening the franchise into poultry items has been removed after tensions with its directors.
Leadership Change
Andrew Rennie is departing after just two years in leadership, and will be replaced on an interim basis by the organization's chief operating officer, Nicola Frampton, while the pizza giant looks for a long-term chief.
The outgoing executive, who served at Domino's for a substantial period, had attempted to redirect the UK's leading pizza delivery company towards poultry-based products, commenting in a recent interview there was not “huge potential” left in the pizza sector in the UK. He noted chicken was the quickest rising menu item in the world.
Governance Tensions
Reports indicate that there was disagreement between Rennie and the directors over his focus and management style, although Domino's release said he was departing “as a joint decision”.
New Product Launch
In the autumn, the chain launched its chicken-focused offering – which Rennie referred to as a “major strategic shift” for the organization – and is trialling it in 210 outlets in the North West region and Northern Ireland.
While the business is still going to roll it out across its almost 1,400 stores next year as intended, it considers chicken products as a supplement for its core pizza business.
Board Statement
Bull, the Domino's chairman, said: “We are confident that there are a range of possibilities to enhance value and value creation in Domino's core business. We are concentrating on finding the right chief executive to oversee the systematic rollout of that development approach.”
Industry Challenges
In the latest update, Domino's, which has millions of users in the British Isles, said orders declined by 1.5 percent in the third quarter. In the summer, it cautioned that the food delivery sector had “become tougher” as it blamed economic uncertainty in the period before the budget and higher payroll outlays for weaker-than-expected sales and a 15 percent decline in interim earnings.
Other pizza operators are also facing challenges. Pizza Hut disclosed the closure of dozens of outlets a recently, after the business behind its outlets fell into administration.
Wellness Initiatives
Adapting to market shifts towards healthier eating, the company has rolled out light options, such as its light base selection of bakes below 400 calories as well as meat-free and gluten-free pizzas. A family-sized pepperoni has 2,311 calories. A large cheese and tomato pizza has 2,171 kcal, while a personal has under 1,000 calories.
Acting Leadership
Frampton has been with Domino's since 2021, and was formerly with the betting firm William Hill. It is thought that she does not want to take on the chief executive role permanently.
Frampton stated: “We have a number of active expansion and operational projects that we will be focused on implementing at pace.”
Frampton noted these involved further work on the company's supply chain and menu innovation, and its rewards program.
Domino's is also in need of a full-time finance director until 16 March, when Andy Andrea joins from the Irish cider and beer maker C&C Group. Until then, Richard Snow is acting financial officer.