Peak Pizza? Domino's Chief Executive Departs Following Pivot Towards Fried Chicken.

The chief executive of the UK's Domino's Pizza chain who proposed the United Kingdom might have reached pizza saturation while broadening the company into fried chicken has been replaced after disagreements with its governing body.

Leadership Change

Rennie is exiting after just two years in leadership, and will be replaced on an interim basis by the organization's chief operating officer, Nicola Frampton, while the pizza giant searches for a new leader.

The outgoing executive, who was with the company for more than two decades, had attempted to redirect the UK's biggest pizza takeaway chain towards fried chicken, stating earlier this month there was not “huge potential” left in the British pizza industry. He said chicken was the quickest rising food category in the international market.

Board Disagreements

It is understood that there was friction between Rennie and the governance team over his strategy and management style, although the company's announcement said he was departing “by mutual agreement”.

New Product Introduction

In September, Domino's launched its poultry offering – which Rennie referred to as a “bold new chapter” for the group – and is piloting it in over 200 locations in the North West region and the province.

While the firm is still going to roll it out across its nearly 1,400 branches next year as intended, it regards chicken products as an addition to its main pizza offerings.

Board Comment

Ian Bull, the Domino's chairman, said: “The board believes that there are a range of possibilities to boost expansion and performance improvement in the main pizza segment. We are prioritizing finding the right chief executive to oversee the careful implementation of that growth strategy.”

Market Challenges

Earlier this month, Domino's, which has 13 million customers in the British Isles, said orders fell by one and a half percent in the latest quarter. In August, it warned that the quick-service industry had “intensified” as it attributed economic uncertainty in the lead-up to the budget and increasing labor expenses for below-target performance and a significant fall in interim earnings.

Competitors are also experiencing difficulties. Pizza Hut revealed the shutting of 68 restaurants a last month, after the business behind its British operations entered insolvency.

Health Initiatives

Responding to consumer trends towards better nutrition, the company has rolled out light options, such as its Thin & Crispy range of pizzas below 400 kcal as well as plant-based and wheat-free pizzas. A large pepperoni pizza has 2,311 kcals. A big margherita has 2,171, while a personal has 909 kcal.

Acting Leadership

The interim chief has been with the company since 2021, and previously worked for the gaming group a well-known operator. It is believed that she prefers not to occupy the top job on a full-time basis.

Frampton stated: “The company has a number of active expansion and efficiency programs that we will be dedicated to executing at pace.”

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

Domino's is also lacking a full-time finance director until the spring, when Andy Andrea comes aboard from the Irish cider and beer maker a well-known firm. For now, Snow is interim finance chief.

Wesley Johnson
Wesley Johnson

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