Peak Pizza? Domino's Chief Executive Steps Down After Shift Towards Fried Chicken.
A chief executive of the UK's Domino's Pizza chain who indicated the UK might have reached pizza saturation while expanding the chain into chicken products has been replaced after conflicts with its governing body.
Leadership Change
Andrew Rennie is departing after just two years in charge, and will be succeeded on an acting basis by the organization's chief operating officer, Frampton, while the pizza giant looks for a permanent CEO.
The outgoing executive, who worked for Domino's for a substantial period, had attempted to redirect the UK's leading pizza delivery company towards poultry-based products, commenting earlier this month there was not “massive growth” left in the British pizza industry. He observed poultry was the quickest rising food category in the international market.
Board Friction
Reports indicate that there was tension between the CEO and the directors over his strategy and business vision, although the company's announcement said he was departing “by mutual agreement”.
New Product Introduction
In the autumn, Domino's introduced its chicken-focused offering – which the former chief called a “major strategic shift” for the group – and is testing 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 2026 as planned, it regards chicken products as an addition to its core pizza business.
Board Comment
Ian Bull, the company chair, said: “The board believes that there are a number of opportunities to enhance value and value creation in the main pizza segment. We are focused on identifying the right chief executive to oversee the disciplined execution of that development approach.”
Market Challenges
In the latest update, Domino's, which has 13 million customers in the UK and Ireland, said transactions fell by 1.5% in the latest quarter. 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 budget and rising wage costs for below-target performance and a 15 percent decline in half-year profits.
Rival chains are also struggling. Pizza Hut disclosed the shutting of dozens of outlets a month ago, after the business behind its outlets fell into administration.
Health Initiatives
Adapting to consumer trends towards better nutrition, Domino's has introduced lower-calorie products, such as its thin-crust line of bakes below 400 kcal as well as plant-based and gluten-free options. A large pepperoni pizza has 2,311 kcals. A big margherita has 2,171 kcal, while a personal has 909 calories.
Acting Leadership
The interim chief has been with the company since the recent past, and had a background at the gaming group William Hill. It is thought that she is not seeking to assume the chief executive role long-term.
She commented: “The company has a multiple active expansion and operational projects that we will be concentrating on implementing at pace.”
Frampton noted these comprised further work on the company's supply chain and product development, and its loyalty scheme.
Domino's is also without a permanent CFO until 16 March, when a new appointee comes aboard from the Irish cider and beer maker C&C Group. In the meantime, Snow is temporary CFO.