Pizza Market Saturation? Domino's Pizza CEO Steps Down After Pivot Into Chicken.

The boss of Domino's Pizza Group who indicated the UK might have reached maximum pizza demand while diversifying the chain into chicken products has been replaced after conflicts with its board.

Executive Change

Andrew Rennie is leaving after just two years in the top role, and will be replaced on an acting basis by the company's operations head, Frampton, while Domino's seeks a long-term chief.

Rennie, who worked for the company for more than two decades, had aimed to redirect the UK's leading pizza delivery company towards poultry-based products, stating earlier this month there was not “massive growth” left in the pizza sector in the UK. He observed poultry was the most rapidly expanding protein in the world.

Board Disagreements

It is understood that there was friction between Rennie and the board over his approach and direction, although the company's announcement said he was stepping down “as a joint decision”.

New Brand Launch

In the autumn, the chain unveiled its Chick 'N' Dip product line – which Rennie called a “major strategic shift” for the organization – and is trialling it in over 200 locations in the North West region and the province.

While the company is still intending to launch it across its nearly 1,400 branches in the coming year as scheduled, it regards fried chicken as complementary to its core pizza business.

Board Statement

Ian Bull, the company chairman, stated: “We are confident that there are a number of opportunities to drive further growth and performance improvement in the main pizza segment. We are focused on finding the suitable leader to lead the careful implementation of that expansion plan.”

Market Difficulties

Earlier this month, the pizza delivery giant, which has 13 million customers in the UK and Ireland, said transactions declined by one and a half percent in the latest quarter. In the summer, it warned that the food delivery sector had “grown more challenging” as it attributed economic uncertainty in the run-up to the government announcement and rising wage costs for disappointing revenue and a significant fall in interim earnings.

Rival chains are also facing challenges. Another major chain announced the closure of 68 restaurants a last month, after the company behind its UK venues entered insolvency.

Health Initiatives

Adapting to market shifts towards better nutrition, Domino's has launched lower-calorie options, such as its thin-crust range of pizzas below 400 kcals as well as meat-free and gluten-free options. A family-sized pepperoni has over 2,300 kcal. A big margherita has 2,171 kcal, while a small has 909 calories.

Interim Leadership

The interim chief has been with Domino's since the recent past, and had a background at the gaming group a well-known operator. It is understood that she prefers not to occupy the top job permanently.

She said: “The company has a number of active growth and performance initiatives that we will be concentrating on executing at speed.”

Frampton noted these included ongoing development on the company's supply chain and product development, and its rewards program.

The pizza chain is also in need of a full-time finance director until March 16, when Andrea joins from the Irish cider and beer maker a well-known firm. In the meantime, Richard Snow is temporary CFO.