Peak Pizza? Domino's Pizza Chief Executive Exits After Shift Towards Fried Chicken.
A head of Domino's Pizza Group who indicated the UK might have reached peak pizza while broadening the chain into fried chicken has been replaced after tensions with its board.
Executive Transition
The former CEO is leaving after only 24 months in charge, and will be succeeded on an acting basis by the organization's chief operating officer, Frampton, while Domino's searches for a new leader.
Rennie, who worked for the company for more than two decades, had sought to redirect Britain's leading pizza food delivery firm towards chicken offerings, stating earlier this month there was not “huge potential” left in the British pizza industry. He observed poultry was the fastest-growing food category in the international market.
Governance Friction
Reports indicate that there was disagreement between Rennie and the governance team over his focus and management style, although Domino's announcement said he was stepping down “by mutual agreement”.
Recent Product Introduction
In the autumn, the chain launched its chicken-focused brand – which Rennie referred to as a “major strategic shift” for the company – and is testing it in select stores in the North West region and the province.
While the firm is still going to roll it out across its almost 1,400 stores in the coming year as intended, it views chicken products as complementary to its core pizza business.
Board Statement
The Domino's chair, the Domino's chair, said: “We are confident that there are a range of possibilities to drive further growth and profitability in our primary operations. We are concentrating on finding the suitable leader to direct the systematic rollout of that development approach.”
Industry Challenges
Earlier this month, Domino's, which has millions of users in the British Isles, said orders declined by one and a half percent in the Q3. In the summer, it cautioned that the quick-service industry had “become tougher” as it attributed reduced spending in the period before the budget and rising wage costs for disappointing revenue and a 15% drop in interim earnings.
Competitors are also experiencing difficulties. Pizza Hut announced the closure of multiple locations a month ago, after the business behind its British operations faced financial collapse.
Health Efforts
Adapting to consumer trends towards healthier eating, the company has launched lower-calorie options, such as its light base line of pizzas below 400 kcal as well as plant-based and allergy-friendly options. A large pepperoni pizza has 2,311 kcals. A large cheese and tomato pizza has over 2,100, while a small has 909 calories.
Acting Management
Frampton has been with the company since 2021, and was formerly with the betting firm William Hill. It is thought that she does not want to occupy the top job long-term.
She commented: “The company has a several current expansion and operational projects that we will be dedicated to implementing at pace.”
Frampton noted these comprised additional efforts on the organization's supply chain and product development, and its loyalty scheme.
The pizza chain 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 a well-known firm. In the meantime, Richard Snow is interim finance chief.