Has Pizza Peaked? Domino's CEO Steps Down Following Pivot Towards Fried Chicken.

A head of the UK's Domino's Pizza chain who proposed the United Kingdom might have reached peak pizza while broadening the company into poultry items has been removed after disagreements with its board.

Leadership Change

Andrew Rennie is exiting after only 24 months in charge, and will be succeeded on an acting basis by the company's operations head, Nicola Frampton, while Domino's seeks a permanent CEO.

The outgoing executive, who served at Domino's for a substantial period, had attempted to redirect the UK's biggest pizza delivery company towards chicken offerings, remarking recently there was not “significant expansion” left in the pizza sector in the UK. He noted chicken was the quickest rising menu item in the globe.

Governance Friction

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

New Product Launch

In the autumn, the chain launched its chicken-focused product line – which Rennie called a “major strategic shift” for the group – and is piloting it in over 200 locations in the North West region and Northern Ireland.

While the company is still going to roll it out across its nearly 1,400 branches in the coming year as intended, it views chicken products as complementary to its main pizza offerings.

Board Comment

Bull, the company chairman, said: “We are confident that there are a range of possibilities to boost expansion and profitability in Domino's core business. We are focused on identifying the suitable leader to direct the careful implementation of that development approach.”

Market Difficulties

Earlier this month, the pizza delivery giant, which has a substantial customer base in the British Isles, said orders dipped by 1.5 percent in the third quarter. In August, it cautioned that the quick-service industry had “grown more challenging” as it attributed reduced spending in the period before the government announcement and higher payroll outlays for weaker-than-expected sales and a 15% drop in half-year profits.

Rival chains are also facing challenges. Another major chain revealed the shutting of multiple locations a last month, after the business behind its outlets faced financial collapse.

Wellness Efforts

Trying to keep up with consumer trends towards better nutrition, the company has launched reduced-calorie options, such as its light base selection of pizzas below 400 kcals as well as vegan and wheat-free options. A big pepperoni bake has 2,311 calories. A large cheese and tomato pizza has over 2,100, while a personal has 909 calories.

Interim Leadership

Nicola Frampton has been with Domino's since the recent past, and had a background at the gaming group a well-known operator. It is understood that she does not want to take on the chief executive role long-term.

Frampton stated: “We have a several ongoing expansion and performance initiatives that we will be focused on executing at speed.”

Frampton noted these involved ongoing development on the organization's supply chain and new item creation, and its loyalty scheme.

The pizza chain is also in need of a long-term finance director until the spring, when a new appointee starts from the beverage producer C&C Group. For now, Richard Snow acts as interim finance chief.

Brandy Strickland
Brandy Strickland

A dedicated medical researcher with over a decade of experience in clinical diagnostics and laboratory management.