Has Pizza Peaked? Domino's Leader Exits Following Shift Into Chicken.
The head of Domino's Pizza Group who indicated the United Kingdom might have hit maximum pizza demand while broadening the franchise into chicken products has been ousted after disagreements with its board.
Executive Change
Andrew Rennie is leaving after just two years in the top role, and will be replaced on an acting basis by the organization's chief operating officer, Nicola Frampton, while Domino's searches for a permanent CEO.
The outgoing executive, who was with the company for a substantial period, had sought to shift the UK's largest pizza takeaway chain towards poultry-based products, stating recently there was not “huge potential” left in the UK's pizza market. He said poultry was the most rapidly expanding menu item in the globe.
Board Tensions
It is understood that there was friction between the CEO and the board over his focus and direction, although Domino's release said he was stepping down “by mutual agreement”.
Recent Brand Introduction
In the autumn, the chain introduced its Chick 'N' Dip offering – which Rennie described as a “significant new phase” for the organization – and is testing it in over 200 locations in the north-west of England and Northern Ireland.
While the firm is still intending to launch it across its nearly 1,400 branches next year as planned, it considers fried chicken as a supplement for its primary pizza operations.
Board Statement
Bull, the Domino's chair, said: “We are confident that there are a series of prospects to boost expansion and performance improvement in Domino's core business. We are concentrating on selecting the ideal CEO to lead the disciplined execution of that growth strategy.”
Market Difficulties
Earlier this month, the pizza delivery giant, which has 13 million customers in the UK and Ireland, said orders declined by 1.5 percent in the latest quarter. In the summer, it cautioned that the quick-service industry had “grown more challenging” as it attributed weaker consumer confidence in the lead-up to the government announcement and higher payroll outlays for weaker-than-expected sales and a significant fall in half-year profits.
Other pizza operators are also experiencing difficulties. Another major chain announced the closing of multiple locations a recently, after the company behind its UK venues faced financial collapse.
Wellness Initiatives
Adapting to market shifts towards better nutrition, the company has launched reduced-calorie items, such as its light base selection of pizzas below 400 kcal as well as meat-free and gluten-free options. A family-sized pepperoni has 2,311 kcals. A big margherita has 2,171, while a personal has 909 calories.
Acting Leadership
Nicola Frampton has been with the company since 2021, and previously worked for the gaming group William Hill. It is understood that she is not seeking to take on the top job long-term.
Frampton stated: “Our team has a several current development and operational projects that we will be focused on carrying out at speed.”
She said these comprised additional efforts on the organization's supply chain and product development, and its loyalty scheme.
Domino's is also lacking a long-term finance director until 16 March, when a new appointee comes aboard from the drinks company a well-known firm. For now, Snow is interim finance chief.