Has Pizza Peaked? Domino's CEO Exits Following Move Towards Chicken.
A chief executive of the UK's Domino's Pizza chain who proposed the UK might have hit peak pizza while expanding the chain into poultry items has been removed after conflicts with its governing body.
Leadership Change
The former CEO is departing after only 24 months in charge, and will be succeeded on an acting basis by the company's operations head, Nicola Frampton, while Domino's searches for a permanent CEO.
Rennie, who worked for Domino's for a substantial period, had sought to shift Britain's biggest pizza takeaway chain towards chicken offerings, remarking earlier this month there was not “significant expansion” left in the UK's pizza market. He said poultry was the fastest-growing menu item in the world.
Board Tensions
Sources suggest that there was disagreement between the CEO and the board over his focus and business vision, although Domino's release said he was leaving “as a joint decision”.
New Brand Launch
In the autumn, the chain unveiled its poultry brand – which the former chief referred to as a “bold new chapter” for the company – and is testing it in over 200 locations in the North West region and the province.
While the company is still planning to expand it across its nearly 1,400 branches next year as planned, it regards chicken products as a supplement for its core pizza business.
Leadership Statement
Bull, the company chair, stated: “The board believes that there are a series of prospects to drive further growth and profitability in Domino's core business. We are focused on identifying the ideal CEO to lead the systematic rollout of that growth strategy.”
Industry Challenges
In the latest update, the pizza delivery giant, which has 13 million customers in the UK and Ireland, said orders declined by 1.5 percent in the third quarter. In August, it alerted that the food delivery sector had “intensified” as it attributed weaker consumer confidence in the run-up to the budget and increasing labor expenses for below-target performance and a significant fall in six-month income.
Other pizza operators are also struggling. Another major chain disclosed the closure of dozens of outlets a recently, after the business behind its outlets fell into administration.
Health Initiatives
Adapting to market shifts towards healthier eating, the company has rolled out lower-calorie items, such as its thin-crust selection of pizzas below 400 kcals as well as meat-free and gluten-free options. A family-sized pepperoni has 2,311 calories. A family cheese pizza has 2,171 kcal, while a personal has under 1,000 calories.
Acting Management
Frampton has been with Domino's since 2021, and had a background at the gaming group a well-known operator. It is thought that she does not want to occupy the CEO position long-term.
She said: “The company has a number of ongoing expansion and operational projects that we will be focused on executing at speed.”
She added these included additional efforts on the company's procurement system and new item creation, and its customer retention initiative.
Domino's is also lacking a permanent finance director until March 16, when Andy Andrea joins from the drinks company a well-known firm. For now, Snow acts as interim finance chief.