Peak Pizza? Domino's Chief Executive Departs Following Move Into Fried Chicken.
The head of the UK's Domino's Pizza chain who suggested the UK might have reached maximum pizza demand while expanding the franchise into poultry items has been ousted after disagreements with its directors.
Leadership Change
Rennie is exiting after just two years in the top role, and will be succeeded on an temporary basis by the organization's chief operating officer, Nicola Frampton, while Domino's searches for a long-term chief.
The outgoing executive, who served at Domino's for a substantial period, had attempted to pivot Britain's biggest pizza takeaway chain towards fried chicken, remarking in a recent interview there was not “huge potential” left in the British pizza industry. He observed chicken was the fastest-growing menu item in the globe.
Board Disagreements
It is understood that there was friction between the CEO and the board over his strategy and management style, although the company's release said he was leaving “as a joint decision”.
New Product Introduction
In the autumn, Domino's unveiled its chicken-focused brand – which Rennie referred to as a “bold new chapter” for the company – and is testing it in select stores in the North West region and Northern Ireland.
While the business is still intending to launch it across its nearly 1,400 branches next year as planned, it views fried chicken as an addition to its main pizza offerings.
Board Comment
Bull, the company chair, stated: “Directors think that there are a series of prospects to enhance value and value creation in Domino's core business. We are focused on finding the suitable leader to lead the careful implementation of that expansion plan.”
Industry Difficulties
Earlier this month, Domino's, which has a substantial customer base in the UK and Ireland, said orders dipped by one and a half percent in the Q3. In August, it cautioned that the quick-service industry had “become tougher” as it attributed reduced spending in the lead-up to the government announcement and rising wage costs for weaker-than-expected sales and a significant fall in interim earnings.
Rival chains are also facing challenges. Pizza Hut revealed the closure of 68 restaurants a recently, after the company behind its British operations fell into administration.
Health Efforts
Adapting to market shifts towards balanced diets, the company has introduced light options, such as its thin-crust selection of bakes below 400 kcals as well as vegan and allergy-friendly pizzas. A large pepperoni pizza has 2,311 kcals. A big margherita has over 2,100, while a personal has 909 kcal.
Interim Leadership
Frampton has been with the company since 2021, and had a background at the gaming group William Hill. It is thought that she prefers not to take on the CEO position permanently.
She said: “We have a multiple current expansion and efficiency programs that we will be dedicated to implementing at speed.”
She said these involved additional efforts on the organization's procurement system and product development, and its customer retention initiative.
Domino's is also without a full-time finance director until the spring, when Andy Andrea comes aboard from the beverage producer a well-known firm. For now, Richard Snow serves as acting financial officer.