Has Pizza Peaked? Domino's Pizza CEO Departs After Move Into Chicken.

A head of Domino's Pizza Group who indicated the UK might have reached pizza saturation while broadening the company into poultry items has been removed after tensions with its governing body.

Leadership Transition

Rennie is departing after a brief tenure in charge, and will be replaced on an interim basis by the company's operations head, Nicola Frampton, while the pizza giant searches for a permanent CEO.

Rennie, who worked for the company for more than two decades, had aimed to shift the UK's biggest pizza delivery company towards fried chicken, stating in a recent interview there was not “significant expansion” left in the pizza sector in the UK. He said poultry was the quickest rising menu item in the world.

Board Tensions

Reports indicate that there was friction between the CEO and the directors over his approach and direction, although the company's announcement said he was departing “through mutual consent”.

New Brand Launch

In the autumn, Domino's unveiled its chicken-focused product line – which the former chief referred to as a “bold new chapter” for the group – and is piloting it in select stores in the north-west of England and the province.

While the business is still planning to expand it across its almost 1,400 stores next year as scheduled, it views fried chicken as a supplement for its primary pizza operations.

Board Comment

Bull, the company chair, commented: “Directors think that there are a number of opportunities to enhance value and performance improvement in the main pizza segment. We are prioritizing finding the right chief executive to lead the systematic rollout of that development approach.”

Market Difficulties

Earlier this month, Domino's, which has millions of users in the British Isles, said sales dipped by 1.5% in the Q3. In August, it alerted that the quick-service industry had “intensified” as it attributed economic uncertainty in the period before the government announcement and higher payroll outlays for below-target performance and a significant fall in half-year profits.

Rival chains are also facing challenges. Another major chain disclosed the shutting of dozens of outlets a month ago, after the firm behind its UK venues fell into administration.

Wellness Efforts

Trying to keep up with market shifts towards balanced diets, Domino's has launched lower-calorie products, such as its thin-crust line of pizzas below 400 kcal as well as plant-based and allergy-friendly options. A large pepperoni pizza has over 2,300 kcal. A family cheese pizza has 2,171, while a personal has 909 calories.

Acting Management

The interim chief has been with the company since the recent past, and was formerly with the betting firm William Hill. It is understood that she is not seeking to occupy the CEO position permanently.

She commented: “Our team has a multiple active growth and efficiency programs that we will be concentrating on carrying out at a rapid rate.”

She added these comprised ongoing development on the company's supply chain and new item creation, and its rewards program.

Domino's is also lacking a full-time chief financial officer until 16 March, when a new appointee starts from the drinks company a well-known firm. Until then, Richard Snow acts as acting financial officer.

Amy Mcknight
Amy Mcknight

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