Peak Pizza? Domino's CEO Departs Following Shift Into Chicken.
A 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 governing body.
Executive Change
Andrew Rennie is departing after a brief tenure in charge, and will be replaced on an temporary basis by the company's operations head, Nicola Frampton, while the pizza giant searches for a new leader.
The outgoing executive, who served at Domino's for a substantial period, had aimed to pivot the UK's biggest pizza delivery company towards fried chicken, commenting earlier this month there was not “significant expansion” left in the pizza sector in the UK. He said chicken was the fastest-growing menu item in the globe.
Board Friction
It is understood that there was disagreement between the CEO and the directors over his strategy and management style, although Domino's announcement said he was leaving “through mutual consent”.
Recent Product Launch
In September, the chain unveiled its poultry brand – which Rennie described as a “significant new phase” for the group – and is piloting it in 210 outlets in the north-west of England and the province.
While the business is still going to roll it out across its extensive network in the coming year as scheduled, it considers fried chicken as a supplement for its main pizza offerings.
Board Comment
The Domino's chair, the Domino's chairman, stated: “The board believes that there are a range of possibilities to boost expansion and profitability in Domino's core business. We are concentrating on finding the suitable leader to direct the careful implementation of that development approach.”
Market Challenges
Recently, the pizza delivery giant, which has a substantial customer base in the UK and Ireland, said orders declined by 1.5 percent in the latest quarter. In the summer, it cautioned that the food delivery sector had “intensified” as it blamed economic uncertainty in the run-up to the government announcement and increasing labor expenses for below-target performance and a 15% drop in half-year profits.
Rival chains are also facing challenges. Another major chain announced the closure of dozens of outlets a recently, after the company behind its British operations entered insolvency.
Health Efforts
Adapting to customer preferences towards balanced diets, the company has launched light items, such as its thin-crust line of pizzas below 400 kcals as well as vegan and gluten-free pizzas. A big pepperoni bake has 2,311 calories. A family cheese pizza has over 2,100, while a individual has 909 kcal.
Acting Leadership
The interim chief has been with Domino's since 2021, and previously worked for the gaming group William Hill. It is believed that she does not want to assume the chief executive role permanently.
She said: “The company has a several active expansion and efficiency programs that we will be dedicated to executing at a rapid rate.”
She added these comprised further work on the company's supply chain and new item creation, and its customer retention initiative.
Domino's is also without a permanent finance director until 16 March, when a new appointee joins from the beverage producer a well-known firm. In the meantime, Snow serves as acting financial officer.