Has Pizza Peaked? Domino's Chief Executive Departs After Pivot Into Fried Chicken.

A head of Domino's Pizza Group who suggested the UK might have hit maximum pizza demand while broadening the company into fried chicken has been removed after tensions with its board.

Executive Shake-Up

Rennie is leaving after just two years in leadership, and will be replaced on an acting basis by the organization's operations head, Nicola Frampton, while Domino's looks for a new leader.

The outgoing executive, who worked for Domino's for more than two decades, had attempted to redirect the UK's largest pizza delivery company towards poultry-based products, stating in a recent interview there was not “significant expansion” left in the British pizza industry. He noted poultry was the fastest-growing protein in the world.

Governance Friction

Reports indicate that there was friction between the CEO and the board over his focus and direction, although the company's announcement said he was stepping down “through mutual consent”.

Recent Brand Introduction

In September, the chain introduced its poultry product line – which the former chief referred to as a “major strategic shift” for the organization – and is piloting it in over 200 locations in the north-west of England and Northern Ireland.

While the business is still going to roll it out across its extensive network next year as scheduled, it considers chicken products as a supplement for its main pizza offerings.

Leadership Statement

The Domino's chair, the company chairman, commented: “The board believes that there are a range of possibilities to boost expansion and profitability in the main pizza segment. We are concentrating on identifying the right chief executive to lead the systematic rollout of that development approach.”

Market Challenges

Earlier this month, Domino's, which has a substantial customer base in the UK and Ireland, said orders fell by 1.5% in the Q3. In the summer, it alerted that the takeaway market had “grown more challenging” as it attributed weaker consumer confidence in the run-up to the government announcement and rising wage costs for below-target performance and a 15 percent decline in six-month income.

Competitors are also struggling. Pizza Hut revealed the shutting of 68 restaurants a month ago, after the company behind its outlets entered insolvency.

Wellness Efforts

Responding to customer preferences towards better nutrition, the company has introduced reduced-calorie items, such as its Thin & Crispy line of bakes below 400 calories as well as meat-free and wheat-free options. A large pepperoni pizza has 2,311 calories. A large cheese and tomato pizza has 2,171 kcal, while a personal has 909 calories.

Acting Leadership

The interim chief has been with Domino's since 2021, and had a background at the gambling company William Hill. It is thought that she is not seeking to take on the top job on a full-time basis.

She commented: “We have a several ongoing expansion and operational projects that we will be concentrating on executing at speed.”

She added these comprised ongoing development on the organization's logistics network and new item creation, and its rewards program.

The pizza chain is also without a permanent finance director until the spring, when a new appointee joins from the beverage producer a well-known firm. In the meantime, Richard Snow is temporary CFO.

Anne Williams
Anne Williams

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