Pizza Market Saturation? Domino's Pizza Chief Executive Steps Down After Shift Towards Fried Chicken.

A boss of Domino's Pizza Group who suggested the UK might have reached pizza saturation while expanding the company into fried chicken has been replaced after disagreements with its board.

Leadership Change

The former CEO is exiting after just two years in the top role, and will be replaced on an acting basis by the organization's chief operating officer, Frampton, while Domino's searches for a long-term chief.

The outgoing executive, who was with Domino's for over 20 years, had sought to shift the UK's biggest pizza delivery company towards poultry-based products, commenting recently there was not “huge potential” left in the UK's pizza market. He noted chicken was the quickest rising protein in the world.

Governance Tensions

Sources suggest that there was disagreement between the CEO and the governance team over his approach and management style, although the company's official statement said he was leaving “as a joint decision”.

Recent Product Introduction

In September, Domino's introduced its poultry brand – which Rennie described as a “major strategic shift” for the company – and is testing it in over 200 locations in the north-west of England and Northern Ireland.

While the firm is still going to roll it out across its nearly 1,400 branches next year as scheduled, it considers chicken products as complementary to its main pizza offerings.

Leadership Comment

The Domino's chair, the company chairman, commented: “We are confident that there are a number of opportunities to enhance value and performance improvement in the main pizza segment. We are concentrating on identifying the ideal CEO to direct the careful implementation of that growth strategy.”

Market Challenges

Earlier this month, Domino's, which has millions of users in the British Isles, said orders dipped by 1.5 percent in the third quarter. In August, it cautioned that the food delivery sector had “become tougher” as it blamed economic uncertainty in the period before the government announcement and rising wage costs for below-target performance and a significant fall in interim earnings.

Competitors are also struggling. Pizza Hut announced the shutting of multiple locations a last month, after the business behind its outlets entered insolvency.

Wellness Initiatives

Trying to keep up with market shifts towards healthier eating, Domino's has introduced lower-calorie options, such as its thin-crust range of bakes below 400 calories as well as meat-free and allergy-friendly pizzas. A family-sized pepperoni has 2,311 kcals. A large cheese and tomato pizza has over 2,100, while a small has 909 kcal.

Acting Management

Nicola Frampton has been with the company since 2021, and was formerly with the gambling company a well-known operator. It is thought that she is not seeking to occupy the CEO position permanently.

She commented: “The company has a multiple ongoing expansion and performance initiatives that we will be dedicated to implementing at a rapid rate.”

She added these included further work on the organization's procurement system and new item creation, and its customer retention initiative.

The pizza chain is also in need of a permanent finance director until the spring, when Andrea starts from the drinks company C&C Group. Until then, Richard Snow is interim finance chief.

Vincent Phillips
Vincent Phillips

A seasoned journalist with over a decade of experience covering UK politics and social issues, known for in-depth analysis and engaging storytelling.