Peak Pizza? Domino's Pizza Chief Executive Departs Following Shift Into Fried Chicken.
The boss of the UK's Domino's Pizza chain who proposed the United Kingdom might have hit pizza saturation while diversifying the franchise into poultry items has been replaced after disagreements with its directors.
Executive Change
The former CEO is leaving after just two years in charge, and will be succeeded on an temporary basis by the organization's chief operating officer, Frampton, while Domino's searches for a long-term chief.
Rennie, who was with the company for more than two decades, had aimed to pivot the UK's largest pizza takeaway chain towards fried chicken, remarking earlier this month there was not “significant expansion” left in the pizza sector in the UK. He said poultry was the quickest rising menu item in the globe.
Governance Friction
Sources suggest that there was friction between the CEO and the directors over his focus and direction, although the company's official statement said he was leaving “by mutual agreement”.
New Brand Introduction
In the autumn, the chain introduced its chicken-focused offering – which the former chief described as a “bold new chapter” for the organization – and is testing it in 210 outlets in the north-west of England and Northern Ireland.
While the business is still going to roll it out across its almost 1,400 stores next year as planned, it considers chicken products as complementary to its core pizza business.
Board Comment
Ian Bull, the company chair, said: “The board believes that there are a number of opportunities to drive further growth and performance improvement in the main pizza segment. We are concentrating on selecting the suitable leader to direct the careful implementation of that growth strategy.”
Market Challenges
Earlier this month, the pizza delivery giant, which has 13 million customers in the British Isles, said transactions declined by 1.5 percent in the Q3. In August, it warned that the food delivery sector had “grown more challenging” as it blamed economic uncertainty in the lead-up to the budget and increasing labor expenses for weaker-than-expected sales and a 15 percent decline in six-month income.
Other pizza operators are also facing challenges. Pizza Hut announced the closing of 68 restaurants a recently, after the firm behind its British operations entered insolvency.
Health Efforts
Trying to keep up with market shifts towards healthier eating, Domino's has rolled out light items, such as its Thin & Crispy line of bakes below 400 kcals as well as plant-based and wheat-free options. A family-sized pepperoni has 2,311 kcals. A big margherita has over 2,100, while a small has under 1,000 calories.
Interim Leadership
The interim chief has been with the company since 2021, and had a background at the gaming group William Hill. It is understood that she does not want to assume the CEO position on a full-time basis.
She commented: “The company has a several active development and efficiency programs that we will be concentrating on executing at speed.”
She added these involved ongoing development on the company's procurement system and new item creation, and its loyalty scheme.
The pizza chain is also in need of a full-time finance director until March 16, when a new appointee joins from the drinks company C&C Group. For now, Snow acts as acting financial officer.
