Has Pizza Peaked? Domino's Leader Steps Down After Move Towards Fried Chicken.

The chief executive of Domino's Pizza Group who proposed the United Kingdom might have reached maximum pizza demand while diversifying the franchise into fried chicken has been removed after tensions with its board.

Executive Change

Rennie is exiting after a brief tenure in charge, and will be succeeded on an interim basis by the company's operations head, Frampton, while Domino's seeks a new leader.

The outgoing executive, who served at Domino's for more than two decades, had attempted to pivot Britain's biggest pizza food delivery firm towards fried chicken, commenting earlier this month there was not “significant expansion” left in the British pizza industry. He said chicken was the most rapidly expanding menu item in the globe.

Board Disagreements

Sources suggest that there was friction between Rennie and the board over his strategy and management style, although Domino's official statement said he was leaving “by mutual agreement”.

Recent Product Launch

In the autumn, the chain launched its Chick 'N' Dip offering – which Rennie described as a “significant new phase” for the group – and is piloting it in 210 outlets in the North West region and Northern Ireland.

While the firm is still going to roll it out across its nearly 1,400 branches in the coming year as planned, it regards chicken products as complementary to its core pizza business.

Board Statement

The Domino's chair, the company chairman, commented: “We are confident that there are a series of prospects to boost expansion and profitability in the main pizza segment. We are focused on identifying the ideal CEO to oversee the careful implementation of that expansion plan.”

Industry Challenges

Recently, Domino's, which has a substantial customer base in the UK and Ireland, said orders declined by 1.5% in the third quarter. In August, it alerted that the food delivery sector had “grown more challenging” as it attributed weaker consumer confidence in the run-up to the budget and increasing labor expenses for disappointing revenue and a significant fall in interim earnings.

Competitors are also experiencing difficulties. Another major chain revealed the shutting of dozens of outlets a last month, after the firm behind its British operations fell into administration.

Health Efforts

Responding to consumer trends towards better nutrition, the company has introduced reduced-calorie options, such as its light base line of pizzas below 400 calories as well as vegan and wheat-free options. A family-sized pepperoni has over 2,300 kcal. A large cheese and tomato pizza has over 2,100, while a personal has under 1,000 calories.

Acting Leadership

Frampton has been with the company since 2021, and was formerly with the gaming group a well-known operator. It is understood that she is not seeking to occupy the CEO position on a full-time basis.

She said: “We have a several active growth and efficiency programs that we will be focused on carrying out at pace.”

She said these included further work on the organization's procurement system and product development, and its rewards program.

The pizza chain is also in need of a full-time CFO until 16 March, when Andrea joins from the Irish cider and beer maker a well-known firm. Until then, Snow is interim finance chief.

Mary Hernandez
Mary Hernandez

A forward-thinking innovator and writer passionate about creativity, technology, and sharing insights to empower others.