Peak Pizza? Domino's Chief Executive Departs Following Shift Into Fried Chicken.
The boss of the UK's Domino's Pizza chain who suggested the UK might have reached peak pizza while expanding the company into chicken products has been replaced after disagreements with its directors.
Executive Transition
The former CEO is leaving after only 24 months in the top role, and will be succeeded on an temporary basis by the organization's operations head, Frampton, while Domino's looks for a new leader.
Rennie, who was with the company for more than two decades, had attempted to pivot Britain's biggest pizza food delivery firm towards fried chicken, stating in a recent interview there was not “significant expansion” left in the UK's pizza market. He said poultry was the most rapidly expanding protein in the globe.
Board Friction
It is understood that there was tension between the CEO and the board over his focus and direction, although Domino's release said he was leaving “through mutual consent”.
Recent Product Introduction
In September, the chain introduced its Chick 'N' Dip product line – which the former chief described as 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 business is still intending to launch it across its almost 1,400 stores next year as intended, it considers chicken products as complementary to its main pizza offerings.
Leadership Statement
The Domino's chair, the Domino's chair, said: “We are confident that there are a series of prospects to boost expansion and profitability in our primary operations. We are focused on selecting the ideal CEO to lead the careful implementation of that expansion plan.”
Industry Difficulties
Earlier this month, the pizza delivery giant, which has a substantial customer base in the UK and Ireland, said orders declined by one and a half percent in the latest quarter. In the summer, it alerted that the quick-service industry had “intensified” as it attributed weaker consumer confidence in the period before the budget and increasing labor expenses for weaker-than-expected sales and a 15 percent decline in half-year profits.
Rival chains are also experiencing difficulties. Another major chain disclosed the closing of 68 restaurants a month ago, after the business behind its outlets entered insolvency.
Wellness Efforts
Responding to consumer trends towards healthier eating, the company has launched lower-calorie items, such as its Thin & Crispy line of pizzas below 400 calories as well as vegan and gluten-free options. A large pepperoni pizza has 2,311 calories. A large cheese and tomato pizza has over 2,100, while a small has under 1,000 calories.
Interim Leadership
Nicola Frampton has been with Domino's since 2021, and had a background at the gambling company a well-known operator. It is believed that she is not seeking to occupy the chief executive role permanently.
She commented: “The company has a multiple active expansion and performance initiatives that we will be dedicated to carrying out at pace.”
She said these involved ongoing development on the company's supply chain and menu innovation, and its customer retention initiative.
The pizza chain is also without a full-time finance director until March 16, when Andrea comes aboard from the drinks company C&C Group. Until then, Snow acts as acting financial officer.