Peak Pizza? Domino's Pizza Chief Executive Exits After Pivot Into Fried Chicken.

The head of the UK's Domino's Pizza chain who proposed the UK might have hit peak pizza while broadening the chain into fried chicken has been ousted after disagreements with its directors.

Leadership Shake-Up

Andrew Rennie is leaving after a brief tenure in the top role, and will be replaced on an acting basis by the company's operations head, Frampton, while Domino's seeks a new leader.

Rennie, who was with Domino's for over 20 years, had aimed to shift Britain's leading pizza food delivery firm towards poultry-based products, commenting recently there was not “significant expansion” left in the UK's pizza market. He noted poultry was the fastest-growing menu item in the world.

Governance Tensions

It is understood that there was disagreement between the CEO and the board over his approach and business vision, although the company's official statement said he was departing “through mutual consent”.

New Product Introduction

In September, Domino's launched its poultry product line – which the former chief described as a “major strategic shift” for the organization – and is trialling it in select stores in the North West region and Northern Ireland.

While the firm is still going to roll it out across its extensive network in the coming year as scheduled, it considers fried chicken as an addition to its main pizza offerings.

Leadership Comment

Ian Bull, the company chairman, said: “We are confident that there are a series of prospects to enhance value and value creation in our primary operations. We are focused on selecting the ideal CEO to oversee the careful implementation of that development approach.”

Industry Difficulties

In the latest update, the pizza delivery giant, which has millions of users in the UK and Ireland, said transactions declined by one and a half percent in the latest quarter. In the summer, it alerted that the quick-service industry had “become tougher” as it blamed weaker consumer confidence in the lead-up to the government announcement and increasing labor expenses for below-target performance and a 15% drop in interim earnings.

Other pizza operators are also struggling. Another major chain disclosed the closing of dozens of outlets a recently, after the business behind its outlets entered insolvency.

Wellness Efforts

Trying to keep up with consumer trends towards balanced diets, the company has launched lower-calorie products, such as its thin-crust selection of pizzas below 400 kcal as well as meat-free and allergy-friendly options. A family-sized pepperoni has 2,311 kcals. A large cheese and tomato pizza has 2,171, while a small has 909 kcal.

Interim Management

The interim chief has been with Domino's since the recent past, and previously worked for the gaming group William Hill. It is believed that she is not seeking to take on the CEO position on a full-time basis.

She commented: “Our team has a several active development and efficiency programs that we will be dedicated to carrying out at pace.”

Frampton noted these involved additional efforts on the company's supply chain and product development, and its customer retention initiative.

Domino's is also lacking a long-term CFO until 16 March, when a new appointee comes aboard from the beverage producer a well-known firm. For now, Snow is interim finance chief.

Stephanie Johnson
Stephanie Johnson

Elara is an avid hiker and nature writer, sharing personal stories and expert advice from trails around the world.