Peak Pizza? Domino's Pizza CEO Exits Following Pivot Towards Fried Chicken.

The head of the UK's Domino's Pizza chain who proposed the United Kingdom might have reached peak pizza while diversifying the franchise into chicken products has been removed after disagreements with its governing body.

Executive Shake-Up

Andrew Rennie is exiting after a brief tenure in the top role, and will be succeeded on an interim basis by the organization's operations head, Frampton, while the pizza giant seeks a new leader.

Rennie, who served at Domino's for over 20 years, had attempted to redirect Britain's biggest pizza takeaway chain towards fried chicken, remarking earlier this month there was not “significant expansion” left in the UK's pizza market. He said chicken was the most rapidly expanding menu item in the world.

Board Disagreements

Reports indicate that there was tension between the CEO and the board over his approach and management style, although the company's release said he was departing “as a joint decision”.

Recent Brand Launch

In September, the chain unveiled its poultry offering – which Rennie referred to as a “major strategic shift” for the group – and is testing it in 210 outlets in the north-west of England and Northern Ireland.

While the firm is still planning to expand it across its almost 1,400 stores next year as scheduled, it regards fried chicken as an addition to its primary pizza operations.

Board Statement

Bull, the company chairman, stated: “The board believes that there are a series of prospects to drive further growth and profitability in our primary operations. We are focused on identifying the ideal CEO to lead the careful implementation of that expansion plan.”

Market Challenges

In the latest update, Domino's, which has 13 million customers in the British Isles, said transactions declined by one and a half percent in the Q3. In August, it warned that the food delivery sector had “intensified” as it blamed weaker consumer confidence in the lead-up to the budget and increasing labor expenses for weaker-than-expected sales and a 15 percent decline in six-month income.

Competitors are also struggling. Pizza Hut announced the closure of multiple locations a last month, after the firm behind its outlets fell into administration.

Wellness Efforts

Responding to market shifts towards better nutrition, Domino's has introduced reduced-calorie products, such as its thin-crust line of pizzas below 400 calories as well as plant-based and allergy-friendly options. A family-sized pepperoni has over 2,300 kcal. A large cheese and tomato pizza has 2,171, while a small has 909 kcal.

Acting Management

Nicola Frampton has been with the company since 2021, and previously worked for the gambling company William Hill. It is thought that she is not seeking to take on the top job permanently.

She said: “We have a several ongoing expansion and performance initiatives that we will be dedicated to implementing at a rapid rate.”

She said these included further work on the company's supply chain and menu innovation, and its rewards program.

The pizza chain is also without a full-time CFO until March 16, when a new appointee joins from the Irish cider and beer maker C&C Group. For now, Richard Snow serves as acting financial officer.

Robert Davis
Robert Davis

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