Pizza Market Saturation? Domino's Pizza Leader Departs After Pivot Into Fried Chicken.
The chief executive of the UK's Domino's Pizza chain who indicated the United Kingdom might have reached peak pizza while expanding the chain into chicken products has been removed after disagreements with its directors.
Executive Change
The former CEO is leaving after just two years in leadership, and will be succeeded on an acting basis by the company's chief operating officer, Frampton, while Domino's looks for a long-term chief.
Rennie, who was with Domino's for more than two decades, had sought to shift Britain's biggest pizza delivery company towards chicken offerings, stating in a recent interview there was not “huge potential” left in the British pizza industry. He noted chicken was the fastest-growing food category in the world.
Board Disagreements
It is understood that there was friction between the CEO and the board over his strategy and direction, although the company's official statement said he was leaving “through mutual consent”.
New Brand Launch
In September, the chain unveiled its poultry product line – which Rennie referred to as a “bold new chapter” for the company – and is testing it in over 200 locations in the North West region and Northern Ireland.
While the firm is still planning to expand it across its extensive network in 2026 as planned, it regards chicken products as an addition to its primary pizza operations.
Leadership Comment
Ian Bull, the Domino's chairman, commented: “The board believes that there are a number of opportunities to boost expansion and value creation in Domino's core business. We are focused on identifying the suitable leader to oversee the systematic rollout of that expansion plan.”
Industry Challenges
In the latest update, the pizza delivery giant, which has a substantial customer base in the UK and Ireland, said transactions fell by one and a half percent in the latest quarter. In August, it warned that the food delivery sector had “become tougher” as it blamed economic uncertainty in the lead-up to the budget and higher payroll outlays for disappointing revenue and a significant fall in interim earnings.
Other pizza operators are also facing challenges. Pizza Hut announced the closure of dozens of outlets a month ago, after the business behind its UK venues faced financial collapse.
Wellness Initiatives
Adapting to market shifts towards healthier eating, Domino's has introduced reduced-calorie items, such as its Thin & Crispy range of bakes below 400 kcal as well as meat-free and wheat-free pizzas. A big pepperoni bake has over 2,300 kcal. A big margherita has over 2,100, while a small has 909 calories.
Interim Management
Nicola Frampton has been with the company since 2021, and had a background at the gaming group William Hill. It is believed that she does not want to occupy the chief executive role on a full-time basis.
She said: “We have a several ongoing expansion and efficiency programs that we will be concentrating on carrying out at pace.”
She added these comprised further work on the company's procurement system and new item creation, and its customer retention initiative.
The pizza chain is also without a permanent chief financial officer until the spring, when Andy Andrea comes aboard from the Irish cider and beer maker C&C Group. For now, Richard Snow is temporary CFO.