Pizza Market Saturation? Domino's Pizza CEO Steps Down Following Shift Into Fried Chicken.

A head of the UK's Domino's Pizza chain who proposed the UK might have hit maximum pizza demand while broadening the chain into chicken products has been replaced after tensions with its governing body.

Leadership Transition

The former CEO is leaving after just two years in charge, and will be succeeded on an acting basis by the company's chief operating officer, Frampton, while the pizza giant searches for a new leader.

Rennie, who was with the company for a substantial period, had sought to pivot Britain's largest pizza food delivery firm towards fried chicken, remarking earlier this month there was not “massive growth” left in the British pizza industry. He noted poultry was the quickest rising protein in the globe.

Board Friction

It is understood that there was tension between the CEO and the governance team over his focus and management style, although Domino's release said he was departing “by mutual agreement”.

New Brand Launch

In September, the chain launched its chicken-focused offering – which the former chief called a “major strategic shift” for the group – and is testing it in 210 outlets in the North West region and the province.

While the firm is still intending to launch it across its nearly 1,400 branches in the coming year as planned, it regards fried chicken as a supplement for its core pizza business.

Leadership Comment

Ian Bull, the company chair, said: “We are confident that there are a number of opportunities to boost expansion and performance improvement in Domino's core business. We are focused on finding the right chief executive to oversee the disciplined execution of that growth strategy.”

Industry Challenges

Earlier this month, Domino's, which has 13 million customers in the British Isles, said transactions declined by 1.5 percent in the Q3. In the summer, it cautioned that the quick-service industry had “become tougher” as it blamed reduced spending in the lead-up to the government announcement and higher payroll outlays for below-target performance and a 15 percent decline in half-year profits.

Other pizza operators are also facing challenges. Another major chain revealed the closure of multiple locations a last month, after the company behind its UK venues faced financial collapse.

Wellness Efforts

Adapting to market shifts towards balanced diets, Domino's has launched lower-calorie items, such as its light base line of pizzas below 400 kcals as well as vegan and wheat-free options. A family-sized pepperoni has 2,311 kcals. A large cheese and tomato pizza has 2,171 kcal, while a small has 909 kcal.

Acting Leadership

Frampton has been with the company since the recent past, and was formerly with the betting firm William Hill. It is thought that she is not seeking to take on the CEO position on a full-time basis.

She commented: “We have a number of ongoing expansion and efficiency programs that we will be dedicated to carrying out at speed.”

She said these involved additional efforts on the organization's procurement system and product development, and its rewards program.

Domino's is also lacking a long-term CFO until 16 March, when a new appointee comes aboard from the drinks company a well-known firm. In the meantime, Snow acts as interim finance chief.