Pizza Market Saturation? Domino's Pizza Leader Departs Following Shift Into Fried Chicken.
A boss of the UK's Domino's Pizza chain who suggested the UK might have reached pizza saturation while broadening the chain into chicken products has been replaced after conflicts with its directors.
Executive Shake-Up
Andrew Rennie is exiting after just two years in charge, and will be succeeded on an temporary basis by the company's chief operating officer, Frampton, while the pizza giant searches for a permanent CEO.
The outgoing executive, who worked for the company for more than two decades, had aimed to pivot Britain's biggest pizza food delivery firm towards fried chicken, remarking in a recent interview there was not “significant expansion” left in the UK's pizza market. He observed poultry was the quickest rising food category in the globe.
Governance Tensions
Reports indicate that there was disagreement between Rennie and the directors over his strategy and management style, although the company's announcement said he was departing “by mutual agreement”.
Recent Brand Launch
In September, Domino's introduced its poultry product line – which Rennie called a “significant new phase” for the company – and is testing it in over 200 locations in the north-west of England and the province.
While the company is still intending to launch it across its almost 1,400 stores in 2026 as scheduled, it views chicken products as a supplement for its main pizza offerings.
Board Statement
Ian Bull, the Domino's chairman, commented: “We are confident that there are a number of opportunities to boost expansion and performance improvement in Domino's core business. We are concentrating on selecting the suitable leader to oversee the careful implementation of that growth strategy.”
Industry Challenges
In the latest update, Domino's, which has a substantial customer base in the UK and Ireland, said sales fell by 1.5% in the latest quarter. In the summer, it alerted that the quick-service industry had “grown more challenging” as it blamed weaker consumer confidence in the lead-up to the government announcement and increasing labor expenses for weaker-than-expected sales and a significant fall in six-month income.
Rival chains are also facing challenges. Pizza Hut disclosed the closing of multiple locations a recently, after the company behind its British operations faced financial collapse.
Wellness Efforts
Adapting to market shifts towards better nutrition, the company has launched light items, such as its Thin & Crispy line of pizzas below 400 kcal as well as vegan and gluten-free options. A large pepperoni pizza has 2,311 calories. A family cheese pizza has 2,171 kcal, while a personal has under 1,000 calories.
Interim Management
Nicola Frampton has been with Domino's since 2021, and was formerly with the gaming group a well-known operator. It is thought that she prefers not to assume the top job long-term.
Frampton stated: “The company has a number of active development and operational projects that we will be dedicated to implementing at pace.”
She said these included ongoing development on the company's supply chain and product development, and its loyalty scheme.
The pizza chain is also without a permanent chief financial officer until the spring, when Andy Andrea comes aboard from the drinks company C&C Group. For now, Snow acts as interim finance chief.