Has Pizza Peaked? Domino's Pizza Chief Executive Steps Down After Shift Into Chicken.

A boss of Domino's Pizza Group who proposed the United Kingdom might have hit pizza saturation while diversifying the company into chicken products has been removed after conflicts with its governing body.

Leadership Transition

Rennie is leaving after just two years in leadership, and will be succeeded on an interim basis by the company's chief operating officer, Nicola Frampton, while the pizza giant searches for a long-term chief.

The outgoing executive, who served at Domino's for more than two decades, had sought to pivot the UK's leading pizza food delivery firm towards poultry-based products, remarking recently there was not “massive growth” left in the pizza sector in the UK. He said poultry was the most rapidly expanding food category in the world.

Board Friction

It is understood that there was tension between the CEO and the governance team over his focus and management style, although the company's official statement said he was departing “through mutual consent”.

Recent Brand Launch

In September, the chain launched its chicken-focused brand – which the former chief referred to as a “significant new phase” for the company – and is trialling it in 210 outlets in the north-west of England and the province.

While the business is still going to roll it out across its nearly 1,400 branches in the coming year as planned, it views fried chicken as an addition to its core pizza business.

Leadership Statement

The Domino's chair, the company chair, said: “Directors think that there are a series of prospects to drive further growth and performance improvement in Domino's core business. We are focused on selecting the right chief executive to oversee the careful implementation of that growth strategy.”

Market Challenges

In the latest update, Domino's, which has millions of users in the UK and Ireland, said transactions declined by 1.5% in the Q3. In the summer, it alerted that the quick-service industry had “intensified” as it attributed reduced spending in the lead-up to the budget and increasing labor expenses for below-target performance and a significant fall in half-year profits.

Rival chains are also struggling. Another major chain revealed the closing of dozens of outlets a last month, after the business behind its UK venues entered insolvency.

Wellness Efforts

Responding to market shifts towards better nutrition, the company has introduced reduced-calorie options, such as its Thin & Crispy selection of bakes below 400 calories 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 individual has under 1,000 calories.

Acting Leadership

Nicola Frampton has been with Domino's since the recent past, and previously worked for the betting firm a well-known operator. It is believed that she is not seeking to occupy the chief executive role long-term.

She said: “Our team has a several ongoing development and efficiency programs that we will be dedicated to implementing at speed.”

Frampton noted these comprised ongoing development on the organization's supply chain and new item creation, and its loyalty scheme.

Domino's is also in need of a full-time CFO until March 16, when Andrea joins from the beverage producer C&C Group. In the meantime, Richard Snow acts as acting financial officer.

Tara Padilla
Tara Padilla

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