Pizza Market Saturation? Domino's Pizza CEO Departs After Move Into Chicken.

A chief executive of the UK's Domino's Pizza chain who suggested the UK might have reached pizza saturation while expanding the chain into fried chicken has been removed after tensions with its directors.

Leadership Change

Rennie is exiting after a brief tenure in charge, and will be replaced on an acting basis by the organization's chief operating officer, Frampton, while the pizza giant looks for a new leader.

Rennie, who worked for Domino's for a substantial period, had attempted to redirect Britain's leading pizza takeaway chain towards poultry-based products, remarking in a recent interview there was not “huge potential” left in the pizza sector in the UK. He noted poultry was the fastest-growing food category in the world.

Board Tensions

It is understood that there was disagreement between Rennie and the board over his focus and management style, although the company's release said he was departing “as a joint decision”.

Recent Brand Launch

In the autumn, Domino's launched its chicken-focused brand – which the former chief referred to as a “major strategic shift” for the company – and is piloting it in 210 outlets in the north-west of England and Northern Ireland.

While the firm is still going to roll it out across its almost 1,400 stores in the coming year as planned, it views fried chicken as complementary to its core pizza business.

Board Statement

Bull, the Domino's chairman, commented: “Directors think that there are a series of prospects to enhance value and value creation in Domino's core business. We are focused on selecting the right chief executive to direct the disciplined execution of that development approach.”

Industry Difficulties

Recently, Domino's, which has a substantial customer base in the UK and Ireland, said orders dipped by 1.5 percent in the third quarter. In the summer, it warned that the takeaway market had “become tougher” as it attributed reduced spending in the lead-up to the government announcement and increasing labor expenses for weaker-than-expected sales and a 15 percent decline in interim earnings.

Other pizza operators are also experiencing difficulties. Another major chain announced the closure of 68 restaurants a recently, after the firm behind its outlets fell into administration.

Wellness Initiatives

Adapting to consumer trends towards balanced diets, the company has introduced lower-calorie items, such as its light base line of bakes below 400 kcal as well as meat-free and allergy-friendly pizzas. A big pepperoni bake has 2,311 calories. A family cheese pizza has over 2,100, while a personal has 909 calories.

Interim Leadership

Frampton has been with Domino's since the recent past, and was formerly with the gaming group a well-known operator. It is believed that she does not want to assume the top job permanently.

She commented: “The company has a multiple ongoing expansion and operational projects that we will be concentrating on carrying out at speed.”

Frampton noted these involved ongoing development on the company's procurement system and menu innovation, and its loyalty scheme.

The pizza chain is also in need of a full-time finance director until 16 March, when Andrea starts from the beverage producer a well-known firm. Until then, Snow acts as acting financial officer.