Has Pizza Peaked? Domino's Pizza Leader Exits Following Shift Towards Fried Chicken.
A head of the UK's Domino's Pizza chain who suggested the United Kingdom might have hit pizza saturation while broadening the chain into poultry items has been ousted after tensions with its directors.
Executive Change
The former CEO is leaving after only 24 months in leadership, and will be replaced on an interim basis by the company's chief operating officer, Frampton, while the pizza giant seeks a permanent CEO.
Rennie, who was with Domino's for over 20 years, had sought to redirect the UK's largest pizza takeaway chain towards fried chicken, remarking in a recent interview there was not “massive growth” left in the pizza sector in the UK. He noted poultry was the quickest rising menu item in the international market.
Board Tensions
Reports indicate that there was friction between Rennie and the directors over his strategy and management style, although Domino's release said he was leaving “through mutual consent”.
New Product Launch
In September, Domino's unveiled its poultry brand – which the former chief described as a “bold new chapter” for the group – and is testing it in over 200 locations in the North West region and Northern Ireland.
While the firm is still planning to expand it across its almost 1,400 stores in the coming year as scheduled, it views fried chicken as complementary to its main pizza offerings.
Board Statement
Ian Bull, the company chair, commented: “We are confident that there are a series of prospects to boost expansion and performance improvement in Domino's core business. We are prioritizing finding the suitable leader to lead the systematic rollout of that development approach.”
Industry Difficulties
Recently, the pizza delivery giant, which has a substantial customer base in the British Isles, said orders fell by one and a half percent in the Q3. In August, it cautioned that the quick-service industry had “grown more challenging” as it attributed weaker consumer confidence in the lead-up to the government announcement and increasing labor expenses for below-target performance and a 15% drop in interim earnings.
Rival chains are also facing challenges. Pizza Hut disclosed the closure of multiple locations a last month, after the company behind its outlets fell into administration.
Health Efforts
Trying to keep up with market shifts towards balanced diets, Domino's has introduced light items, such as its thin-crust line of pizzas below 400 calories as well as plant-based and gluten-free pizzas. A big pepperoni bake has 2,311 calories. A big margherita has over 2,100, while a individual has under 1,000 calories.
Interim Leadership
Nicola Frampton has been with the company since 2021, and was formerly with the gambling company a well-known operator. It is understood that she prefers not to assume the CEO position long-term.
Frampton stated: “Our team has a multiple active expansion and performance initiatives that we will be concentrating on carrying out at a rapid rate.”
She said these involved ongoing development on the company's logistics network and product development, and its loyalty scheme.
Domino's is also in need of a full-time chief financial officer until March 16, when Andy Andrea joins from the Irish cider and beer maker C&C Group. For now, Richard Snow serves as acting financial officer.