Has Pizza Peaked? Domino's CEO Exits After Pivot Towards Chicken.
The head of the UK's Domino's Pizza chain who suggested the UK might have reached peak pizza while diversifying the company into poultry items has been ousted after tensions with its board.
Executive Shake-Up
Rennie is exiting after only 24 months in the top role, and will be replaced on an acting basis by the organization's operations head, Nicola Frampton, while Domino's searches for a long-term chief.
Rennie, who worked for Domino's for more than two decades, had aimed to redirect the UK's leading pizza delivery company towards poultry-based products, stating recently there was not “massive growth” left in the British pizza industry. He said poultry was the fastest-growing protein in the world.
Governance Disagreements
Sources suggest that there was friction between Rennie and the directors over his focus and management style, although the company's release said he was departing “by mutual agreement”.
New Product Launch
In September, the chain introduced its chicken-focused brand – which the former chief called a “major strategic shift” for the group – and is piloting it in over 200 locations in the North West region and the province.
While the business is still going to roll it out across its nearly 1,400 branches in the coming year as scheduled, it regards chicken products as complementary to its main pizza offerings.
Leadership Comment
The Domino's chair, the company chair, said: “The board believes that there are a series of prospects to boost expansion and value creation in the main pizza segment. We are focused on selecting the ideal CEO to direct the careful implementation of that development approach.”
Industry Difficulties
Earlier this month, the pizza delivery giant, which has 13 million customers in the UK and Ireland, said sales declined by 1.5% in the third quarter. In August, it cautioned that the food delivery sector had “grown more challenging” as it blamed economic uncertainty in the run-up to the government announcement and increasing labor expenses for disappointing revenue and a 15 percent decline in six-month income.
Other pizza operators are also experiencing difficulties. Another major chain disclosed the closing of multiple locations a recently, after the firm behind its outlets entered insolvency.
Health Efforts
Trying to keep up with consumer trends towards healthier eating, Domino's has introduced reduced-calorie items, such as its light base selection of bakes 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 over 2,100, while a small has 909 calories.
Acting Management
Frampton has been with the company since 2021, and was formerly with the betting firm William Hill. It is believed that she does not want to take on the chief executive role on a full-time basis.
She said: “The company has a number of active expansion and efficiency programs that we will be focused on implementing at a rapid rate.”
She added these included ongoing development on the company's logistics network and product development, and its loyalty scheme.
Domino's is also in need of a permanent CFO until 16 March, when a new appointee joins from the beverage producer a well-known firm. In the meantime, Richard Snow is temporary CFO.