Has Pizza Peaked? Domino's Chief Executive Exits After Pivot Towards Chicken.

A boss of the UK's Domino's Pizza chain who indicated the UK might have reached peak pizza while diversifying the company into fried chicken has been removed after disagreements with its board.

Executive Transition

Rennie is departing after a brief tenure in charge, and will be succeeded on an temporary basis by the organization's operations head, Frampton, while Domino's searches for a permanent CEO.

Rennie, who served at the company for more than two decades, had attempted to redirect Britain's biggest pizza food delivery firm towards fried chicken, stating recently there was not “massive growth” left in the UK's pizza market. He observed chicken was the most rapidly expanding menu item in the globe.

Governance Disagreements

Reports indicate that there was friction between Rennie and the governance team over his approach and management style, although Domino's release said he was departing “by mutual agreement”.

Recent Brand Introduction

In September, Domino's launched its poultry brand – which the former chief referred to as a “significant new phase” for the group – and is piloting it in select stores in the north-west of England and the province.

While the business is still planning to expand it across its nearly 1,400 branches next year as scheduled, it views fried chicken as a supplement for its primary pizza operations.

Leadership Comment

Ian Bull, the Domino's chair, said: “The board believes that there are a range of possibilities to enhance value and profitability in our primary operations. We are focused on identifying the ideal CEO to direct the systematic rollout of that growth strategy.”

Industry Challenges

Earlier this month, the pizza delivery giant, which has millions of users in the UK and Ireland, said sales declined by one and a half percent in the Q3. In the summer, it warned that the quick-service industry had “become tougher” as it blamed reduced spending in the lead-up to the government announcement and increasing labor expenses for weaker-than-expected sales and a 15% drop in six-month income.

Rival chains are also facing challenges. Another major chain revealed the closing of 68 restaurants a recently, after the firm behind its outlets fell into administration.

Wellness Initiatives

Responding to customer preferences towards balanced diets, Domino's has launched lower-calorie options, such as its Thin & Crispy selection of pizzas below 400 kcals as well as meat-free and wheat-free options. A family-sized pepperoni has over 2,300 kcal. A family cheese pizza has 2,171, while a individual has 909 kcal.

Acting Management

Frampton has been with the company since the recent past, and was formerly with the gaming group a well-known operator. It is thought that she is not seeking to take on the top job on a full-time basis.

Frampton stated: “We have a multiple current development and operational projects that we will be dedicated to executing at a rapid rate.”

Frampton noted these involved ongoing development on the organization's logistics network and new item creation, and its loyalty scheme.

The pizza chain is also without a full-time finance director until the spring, when Andy Andrea starts from the Irish cider and beer maker a well-known firm. In the meantime, Snow is temporary CFO.

Steven Walker
Steven Walker

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