Pizza Market Saturation? Domino's Leader Departs After Pivot Towards Chicken.
The boss of Domino's Pizza Group who indicated the UK might have hit peak pizza while broadening the franchise into fried chicken has been ousted after tensions with its governing body.
Leadership Shake-Up
Andrew Rennie is departing after only 24 months in the top role, and will be succeeded on an interim basis by the company's operations head, Nicola Frampton, while the pizza giant seeks a new leader.
Rennie, who worked for the company for more than two decades, had aimed to shift the UK's leading pizza takeaway chain towards poultry-based products, stating recently there was not “massive growth” left in the pizza sector in the UK. He observed chicken was the most rapidly expanding menu item in the globe.
Board Friction
Sources suggest that there was friction between Rennie and the directors over his focus and management style, although the company's official statement said he was leaving “as a joint decision”.
New Brand Launch
In September, Domino's unveiled its chicken-focused product line – which Rennie called a “bold new chapter” for the company – and is trialling it in 210 outlets in the north-west of England and Northern Ireland.
While the company is still planning to expand it across its almost 1,400 stores in 2026 as scheduled, it regards chicken products as an addition to its core pizza business.
Board Comment
The Domino's chair, the Domino's chairman, said: “The board believes that there are a series of prospects to drive further growth and performance improvement in Domino's core business. We are concentrating on identifying the right chief executive to lead the disciplined execution of that expansion plan.”
Industry Challenges
Recently, Domino's, which has millions of users in the UK and Ireland, said orders dipped by 1.5% in the Q3. In the summer, it alerted that the takeaway market had “grown more challenging” as it attributed weaker consumer confidence in the period before the budget and increasing labor expenses for weaker-than-expected sales and a 15 percent decline in half-year profits.
Rival chains are also struggling. Pizza Hut disclosed the shutting of 68 restaurants a month ago, after the company behind its outlets faced financial collapse.
Health Efforts
Responding to consumer trends towards better nutrition, Domino's has launched lower-calorie products, such as its thin-crust selection of pizzas below 400 calories as well as vegan and wheat-free options. A large pepperoni pizza has 2,311 calories. A large cheese and tomato pizza has over 2,100, while a personal has under 1,000 calories.
Interim Management
The interim chief has been with Domino's since the recent past, and was formerly with the betting firm William Hill. It is believed that she prefers not to assume the chief executive role long-term.
She said: “The company has a number of ongoing growth and performance initiatives that we will be dedicated to carrying out at a rapid rate.”
Frampton noted these comprised additional efforts on the organization's logistics network and new item creation, and its rewards program.
The pizza chain is also lacking a long-term finance director until the spring, when Andy Andrea comes aboard from the Irish cider and beer maker a well-known firm. Until then, Richard Snow acts as acting financial officer.