Has Pizza Peaked? Domino's Leader Departs Following Pivot Into Chicken.
The boss of the UK's Domino's Pizza chain who suggested the UK might have reached peak pizza while broadening the chain into fried chicken has been replaced after tensions with its board.
Leadership Shake-Up
Rennie is exiting after just two years in leadership, and will be succeeded on an temporary basis by the organization's operations head, Nicola Frampton, while the pizza giant looks for a long-term chief.
The outgoing executive, who was with Domino's for over 20 years, had sought to pivot the UK's leading pizza takeaway chain towards poultry-based products, stating earlier this month there was not “huge potential” left in the pizza sector in the UK. He noted chicken was the fastest-growing protein in the world.
Governance Tensions
Sources suggest that there was friction between the CEO and the directors over his focus and direction, although Domino's announcement said he was leaving “as a joint decision”.
Recent Brand Introduction
In September, the chain unveiled its chicken-focused offering – which the former chief called a “bold new chapter” for the company – and is piloting it in 210 outlets in the north-west of England and Northern Ireland.
While the firm is still planning to expand it across its almost 1,400 stores next year as scheduled, it views fried chicken as an addition to its main pizza offerings.
Board Comment
Bull, the company chair, stated: “The board believes that there are a number of opportunities to enhance value and value creation in the main pizza segment. We are prioritizing finding the ideal CEO to lead the careful implementation of that growth strategy.”
Industry Challenges
Earlier this month, Domino's, which has a substantial customer base in the British Isles, said transactions fell by one and a half percent in the latest quarter. In the summer, it warned that the quick-service industry had “grown more challenging” as it attributed weaker consumer confidence in the period before the government announcement and rising wage costs for disappointing revenue and a 15% drop in six-month income.
Other pizza operators are also facing challenges. Another major chain announced the closing of dozens of outlets a recently, after the firm behind its outlets fell into administration.
Wellness Initiatives
Responding to consumer trends towards better nutrition, Domino's has launched reduced-calorie products, such as its Thin & Crispy range of pizzas below 400 calories as well as plant-based and allergy-friendly pizzas. A big pepperoni bake has 2,311 calories. A big margherita has 2,171 kcal, while a small has 909 kcal.
Acting Leadership
Frampton has been with the company since 2021, and previously worked for the gaming group William Hill. It is thought that she prefers not to occupy the chief executive role permanently.
Frampton stated: “The company has a multiple ongoing development and performance initiatives that we will be dedicated to carrying out at pace.”
She said these involved further work on the organization's logistics network and product development, and its rewards program.
The pizza chain is also without a permanent CFO until the spring, when Andrea starts from the drinks company C&C Group. In the meantime, Richard Snow serves as acting financial officer.