Peak Pizza? Domino's Chief Executive Steps Down After Shift Towards Fried Chicken.

The chief executive of Domino's Pizza Group who indicated the United Kingdom might have hit peak pizza while diversifying the chain into fried chicken has been ousted after tensions with its board.

Leadership Change

Rennie is departing after just two years in charge, and will be succeeded on an acting basis by the organization's operations head, Frampton, while the pizza giant seeks a permanent CEO.

Rennie, who worked for Domino's for more than two decades, had sought to pivot Britain's biggest pizza takeaway chain towards poultry-based products, remarking recently there was not “significant expansion” left in the UK's pizza market. He said chicken was the fastest-growing protein in the international market.

Governance Tensions

It is understood that there was tension between Rennie and the directors over his approach and direction, although Domino's official statement said he was stepping down “as a joint decision”.

New Product Introduction

In September, the chain introduced its poultry brand – which Rennie called a “significant new phase” for the group – and is trialling it in 210 outlets in the north-west of England and Northern Ireland.

While the company is still planning to expand it across its nearly 1,400 branches next year as intended, it considers fried chicken as complementary to its core pizza business.

Board Statement

The Domino's chair, the Domino's chairman, stated: “The board believes that there are a range of possibilities to drive further growth and value creation in the main pizza segment. We are focused on selecting the suitable leader to lead the disciplined execution of that development approach.”

Industry Difficulties

Recently, the pizza delivery giant, which has millions of users in the UK and Ireland, said orders declined by one and a half percent in the third quarter. In the summer, it warned that the takeaway market had “grown more challenging” as it attributed economic uncertainty in the run-up to the government announcement and higher payroll outlays for disappointing revenue and a 15% drop in six-month income.

Competitors are also struggling. Another major chain announced the closure of multiple locations a last month, after the business behind its British operations faced financial collapse.

Wellness Efforts

Adapting to customer preferences towards better nutrition, the company has launched reduced-calorie products, such as its Thin & Crispy selection of pizzas below 400 kcals as well as plant-based and gluten-free options. A large pepperoni pizza has over 2,300 kcal. A family cheese pizza has 2,171, while a small has under 1,000 calories.

Interim Leadership

Frampton has been with Domino's since 2021, and had a background at the gaming group William Hill. It is believed that she prefers not to occupy the CEO position long-term.

Frampton stated: “We have a multiple ongoing development and efficiency programs that we will be dedicated to executing at a rapid rate.”

She added these involved additional efforts on the organization's supply chain and product development, and its loyalty scheme.

Domino's is also without a full-time chief financial officer until the spring, when Andy Andrea joins from the drinks company a well-known firm. Until then, Richard Snow serves as interim finance chief.

Mark Sanchez
Mark Sanchez

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