Peak Pizza? Domino's CEO Departs Following Shift Towards Fried Chicken.
The boss of the UK's Domino's Pizza chain who indicated the United Kingdom might have hit maximum pizza demand while diversifying the chain into poultry items has been replaced after disagreements with its governing body.
Executive Transition
Andrew Rennie is departing after just two years in leadership, and will be succeeded on an acting basis by the organization's operations head, Nicola Frampton, while the pizza giant seeks a long-term chief.
Rennie, who was with Domino's for a substantial period, had sought to redirect Britain's biggest pizza takeaway chain towards chicken offerings, remarking earlier this month there was not “massive growth” left in the pizza sector in the UK. He said chicken was the most rapidly expanding menu item in the globe.
Governance Disagreements
It is understood that there was disagreement between the CEO and the directors over his approach and direction, although the company's official statement said he was leaving “by mutual agreement”.
New Product Introduction
In the autumn, the chain launched its poultry product line – which Rennie referred to as a “bold new chapter” for the group – and is piloting it in over 200 locations in the north-west of England and Northern Ireland.
While the firm is still intending to launch it across its almost 1,400 stores next year as planned, it considers chicken products as complementary to its primary pizza operations.
Board Statement
The Domino's chair, the Domino's chair, stated: “Directors think that there are a range of possibilities to drive further growth and value creation in our primary operations. We are focused on selecting the suitable leader to direct the systematic rollout of that development approach.”
Market Difficulties
In the latest update, Domino's, which has 13 million customers in the UK and Ireland, said sales dipped by one and a half percent in the third quarter. In the summer, it cautioned that the quick-service industry had “intensified” as it attributed economic uncertainty in the lead-up to the budget and rising wage costs for below-target performance and a significant fall in interim earnings.
Competitors are also facing challenges. Another major chain revealed the closing of dozens of outlets a recently, after the company behind its British operations faced financial collapse.
Wellness Efforts
Responding to consumer trends towards better nutrition, the company has introduced reduced-calorie options, such as its light base selection of pizzas below 400 calories as well as meat-free and wheat-free pizzas. A family-sized pepperoni has 2,311 calories. A big margherita has 2,171 kcal, while a personal has 909 kcal.
Interim Leadership
The interim chief has been with the company since 2021, and was formerly with the betting firm William Hill. It is believed that she is not seeking to take on the CEO position permanently.
She said: “The company has a several current expansion and operational projects that we will be concentrating on implementing at a rapid rate.”
Frampton noted these involved additional efforts on the company's procurement system and product development, and its loyalty scheme.
Domino's is also without a full-time chief financial officer until the spring, when Andy Andrea joins from the Irish cider and beer maker C&C Group. Until then, Richard Snow is acting financial officer.