Pizza Market Saturation? Domino's Leader Departs After Shift Towards Chicken.

A head of the UK's Domino's Pizza chain who suggested the UK might have hit maximum pizza demand while expanding the company into poultry items has been replaced after conflicts with its directors.

Leadership Transition

The former CEO is leaving after just two years in charge, and will be succeeded on an interim basis by the company's operations head, Frampton, while Domino's searches for a permanent CEO.

The outgoing executive, who was with the company for over 20 years, had aimed to redirect the UK's biggest pizza delivery company towards poultry-based products, remarking recently there was not “significant expansion” left in the pizza sector in the UK. He observed poultry was the quickest rising menu item in the international market.

Governance Tensions

Sources suggest that there was friction between the CEO and the directors over his focus and management style, although Domino's official statement said he was stepping down “as a joint decision”.

Recent Product Launch

In September, Domino's introduced its Chick 'N' Dip brand – which Rennie called a “significant new phase” for the organization – and is trialling it in over 200 locations in the north-west of England and the province.

While the company is still going to roll it out across its nearly 1,400 branches in the coming year as scheduled, it considers fried chicken as complementary to its core pizza business.

Leadership Comment

Ian Bull, the Domino's chair, said: “We are confident that there are a series of prospects to enhance value and value creation in the main pizza segment. We are concentrating on identifying the ideal CEO to direct the systematic rollout of that development approach.”

Industry Challenges

In the latest update, Domino's, which has millions of users in the UK and Ireland, said transactions dipped by 1.5% in the latest quarter. In August, it warned that the takeaway market had “intensified” as it attributed reduced spending in the lead-up to the budget and higher payroll outlays for below-target performance and a 15% drop in six-month income.

Rival chains are also facing challenges. Another major chain disclosed the shutting of multiple locations a recently, after the business behind its UK venues faced financial collapse.

Health Efforts

Trying to keep up with market shifts towards balanced diets, Domino's has introduced light products, such as its thin-crust range of pizzas below 400 kcals as well as plant-based and allergy-friendly pizzas. A family-sized pepperoni has over 2,300 kcal. A big margherita has over 2,100, while a personal has 909 calories.

Acting Leadership

Frampton has been with Domino's since the recent past, and was formerly with the betting firm a well-known operator. It is understood that she is not seeking to assume the CEO position on a full-time basis.

She commented: “We have a several current development and operational projects that we will be focused on executing at pace.”

Frampton noted these included additional efforts on the organization's procurement system and menu innovation, and its rewards program.

The pizza chain is also without a long-term chief financial officer until the spring, when a new appointee comes aboard from the drinks company a well-known firm. In the meantime, Snow is interim finance chief.