Has Pizza Peaked? Domino's Pizza CEO Exits Following Shift Towards Chicken.
The chief executive of the UK's Domino's Pizza chain who proposed the United Kingdom might have hit maximum pizza demand while expanding the company into fried chicken has been replaced after tensions with its board.
Executive Change
Rennie is exiting after a brief tenure 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 long-term chief.
The outgoing executive, who served at Domino's for a substantial period, had attempted to shift the UK's leading pizza takeaway chain towards poultry-based products, stating recently there was not “massive growth” left in the British pizza industry. He observed chicken was the most rapidly expanding protein in the international market.
Board Friction
It is understood that there was disagreement between Rennie and the board over his focus and direction, although the company's release said he was departing “through mutual consent”.
New Brand Launch
In September, Domino's introduced its chicken-focused brand – which the former chief described as a “major strategic shift” for the company – and is testing it in select stores in the North West region and Northern Ireland.
While the company is still intending to launch it across its almost 1,400 stores next year as scheduled, it views chicken products as a supplement for its primary pizza operations.
Leadership Comment
Bull, the company chair, stated: “Directors think that there are a series of prospects to enhance value and profitability in the main pizza segment. We are focused on finding the suitable leader to oversee the systematic rollout of that development approach.”
Market Challenges
Recently, Domino's, which has a substantial customer base in the British Isles, said orders dipped by 1.5 percent in the third quarter. In the summer, it alerted that the takeaway market had “intensified” as it attributed reduced spending in the period before the budget and higher payroll outlays for disappointing revenue and a 15% drop in interim earnings.
Rival chains are also experiencing difficulties. Pizza Hut revealed the shutting of multiple locations a last month, after the company behind its British operations fell into administration.
Wellness Efforts
Adapting to consumer trends towards healthier eating, Domino's has rolled out lower-calorie options, such as its thin-crust line of pizzas below 400 kcal as well as meat-free and allergy-friendly options. A big pepperoni bake has 2,311 calories. A big margherita has 2,171 kcal, while a small has 909 kcal.
Acting Management
Nicola Frampton has been with Domino's since 2021, and was formerly with the gambling company a well-known operator. It is understood that she prefers not to take on the CEO position long-term.
Frampton stated: “The company has a multiple active expansion and performance initiatives that we will be dedicated to implementing at pace.”
She added these comprised further work on the company's supply chain and new item creation, and its rewards program.
Domino's is also without a permanent chief financial officer until 16 March, when Andy Andrea joins from the Irish cider and beer maker a well-known firm. In the meantime, Richard Snow acts as temporary CFO.
