Peak Pizza? Domino's CEO Exits Following Move Towards Chicken.
A boss of the UK's Domino's Pizza chain who indicated the UK might have hit maximum pizza demand while broadening the franchise into poultry items has been ousted after disagreements with its governing body.
Executive Shake-Up
The former CEO is leaving after a brief tenure in the top role, and will be replaced on an temporary basis by the organization's operations head, Nicola Frampton, while Domino's searches for a new leader.
Rennie, who worked for the company for more than two decades, had aimed to redirect Britain's largest pizza takeaway chain towards fried chicken, remarking in a recent interview there was not “huge potential” left in the UK's pizza market. He said chicken was the most rapidly expanding menu item in the globe.
Board Tensions
Sources suggest that there was tension between Rennie and the governance team over his strategy and direction, although the company's official statement said he was leaving “through mutual consent”.
Recent Brand Launch
In September, Domino's launched its chicken-focused brand – which Rennie referred to as a “significant new phase” for the company – and is testing it in over 200 locations in the North West region and Northern Ireland.
While the company is still going to roll it out across its extensive network next year as scheduled, it considers chicken products as a supplement for its core pizza business.
Leadership Statement
The Domino's chair, the company chair, stated: “We are confident that there are a range of possibilities to drive further growth and value creation in Domino's core business. We are prioritizing identifying the suitable leader to oversee the careful implementation of that expansion plan.”
Industry Difficulties
Earlier this month, Domino's, which has a substantial customer base in the British Isles, said transactions dipped by one and a half percent in the Q3. In August, it cautioned that the takeaway market had “become tougher” as it attributed economic uncertainty in the run-up to the government announcement and higher payroll outlays for weaker-than-expected sales and a 15% drop in six-month income.
Other pizza operators are also experiencing difficulties. Pizza Hut disclosed the closure of 68 restaurants a month ago, after the company behind its UK venues fell into administration.
Health Efforts
Adapting to customer preferences towards healthier eating, Domino's has introduced reduced-calorie items, such as its Thin & Crispy range of pizzas below 400 kcals as well as plant-based and allergy-friendly pizzas. A large pepperoni pizza has over 2,300 kcal. A big margherita has over 2,100, while a personal has 909 kcal.
Interim Management
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 take on the top job permanently.
Frampton stated: “Our team has a number of ongoing development and performance initiatives that we will be focused on implementing at speed.”
She added these involved further work on the company's supply chain and menu innovation, and its rewards program.
Domino's is also in need of a full-time finance director until March 16, when Andy Andrea joins from the drinks company C&C Group. In the meantime, Snow acts as interim finance chief.