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

A head of Domino's Pizza Group who indicated the United Kingdom might have reached pizza saturation while broadening the chain into poultry items has been removed after disagreements with its directors.

Executive Shake-Up

Rennie is leaving after a brief tenure in charge, and will be replaced on an acting basis by the organization's operations head, Nicola Frampton, while Domino's seeks a permanent CEO.

Rennie, who was with Domino's for more than two decades, had aimed to shift the UK's leading pizza delivery company towards chicken offerings, commenting in a recent interview there was not “massive growth” left in the pizza sector in the UK. He observed chicken was the fastest-growing food category in the world.

Governance Friction

It is understood that there was disagreement between the CEO and the board over his strategy and management style, although the company's official statement said he was leaving “through mutual consent”.

Recent Product Launch

In the autumn, Domino's launched its chicken-focused product line – which the former chief referred to as a “bold new chapter” for the group – and is testing it in 210 outlets in the North West region and Northern Ireland.

While the company is still going to roll it out across its nearly 1,400 branches next year as scheduled, it views chicken products as complementary to its core pizza business.

Leadership Statement

The Domino's chair, the Domino's chairman, stated: “We are confident that there are a number of opportunities to drive further growth and profitability in Domino's core business. We are prioritizing identifying the ideal CEO to oversee the disciplined execution of that growth strategy.”

Industry Difficulties

Earlier this month, the pizza delivery giant, which has a substantial customer base in the British Isles, said sales dipped by 1.5% in the Q3. In the summer, it warned that the takeaway market had “become tougher” as it attributed economic uncertainty in the period before the budget and rising wage costs for weaker-than-expected sales and a 15 percent decline in interim earnings.

Rival chains are also struggling. Pizza Hut revealed the closure of dozens of outlets a month ago, after the firm behind its British operations fell into administration.

Wellness Efforts

Responding to market shifts towards better nutrition, Domino's has launched light items, such as its light base selection of pizzas below 400 calories as well as vegan and allergy-friendly options. A big pepperoni bake has over 2,300 kcal. A family cheese pizza has 2,171, while a individual has 909 calories.

Acting Leadership

Nicola Frampton has been with the company since the recent past, and was formerly with the betting firm William Hill. It is believed that she does not want to take on the chief executive role permanently.

Frampton stated: “We have a multiple current development and performance initiatives that we will be dedicated to carrying out at a rapid rate.”

She added these comprised additional efforts on the organization's logistics network and menu innovation, and its loyalty scheme.

The pizza chain is also without a long-term chief financial officer until March 16, when Andy Andrea comes aboard from the drinks company C&C Group. Until then, Richard Snow is acting financial officer.

David Oconnell
David Oconnell

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