Has Pizza Peaked? Domino's Pizza Chief Executive Steps Down After Shift Into Chicken.
A chief executive of Domino's Pizza Group who indicated the UK might have hit maximum pizza demand while broadening the franchise into chicken products has been ousted after disagreements with its directors.
Leadership Shake-Up
Rennie is departing after just two years 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.
Rennie, who worked for Domino's for a substantial period, had attempted to pivot the UK's leading pizza takeaway chain towards chicken offerings, stating in a recent interview there was not “huge potential” left in the British pizza industry. He observed poultry was the quickest rising food category in the international market.
Board Disagreements
It is understood that there was tension between Rennie and the governance team over his approach and direction, although Domino's release said he was departing “as a joint decision”.
Recent Product Launch
In September, the chain launched its poultry product line – which Rennie called a “major strategic shift” for the group – and is piloting it in over 200 locations in the North West region and the province.
While the firm is still planning to expand it across its extensive network in the coming year as planned, it considers chicken products as a supplement for its main pizza offerings.
Leadership Comment
Bull, the Domino's chairman, said: “Directors think that there are a series of prospects to enhance value and performance improvement in the main pizza segment. We are concentrating on finding the ideal CEO to lead the careful implementation of that expansion plan.”
Market Difficulties
Earlier this month, the pizza delivery giant, which has millions of users in the UK and Ireland, said sales fell by one and a half percent in the Q3. In August, it warned that the takeaway market had “intensified” as it blamed weaker consumer confidence in the period before the government announcement and higher payroll outlays for weaker-than-expected sales and a significant fall in interim earnings.
Other pizza operators are also experiencing difficulties. Another major chain revealed the shutting of 68 restaurants a last month, after the business behind its UK venues fell into administration.
Wellness Efforts
Responding to consumer trends towards balanced diets, Domino's has introduced reduced-calorie items, such as its Thin & Crispy line of bakes below 400 kcals as well as vegan and wheat-free pizzas. A family-sized pepperoni has 2,311 calories. A family cheese pizza has 2,171 kcal, while a small has 909 kcal.
Interim Management
The interim chief has been with the company since 2021, and had a background at the gaming group a well-known operator. It is understood that she prefers not to take on the top job long-term.
Frampton stated: “The company has a number of ongoing expansion and operational projects that we will be focused on executing at pace.”
She added these included ongoing development on the organization's supply chain and new item creation, and its customer retention initiative.
The pizza chain is also without a full-time chief financial officer until 16 March, when Andy Andrea comes aboard from the Irish cider and beer maker C&C Group. In the meantime, Snow is temporary CFO.