Peak Pizza? Domino's Pizza CEO Departs Following Move Towards Fried Chicken.
The boss of the UK's Domino's Pizza chain who indicated the UK might have reached peak pizza while diversifying the franchise into fried chicken has been removed after conflicts with its governing body.
Leadership Change
Andrew Rennie is leaving after only 24 months in leadership, and will be succeeded on an interim basis by the organization's chief operating officer, Nicola Frampton, while the pizza giant searches for a permanent CEO.
The outgoing executive, who served at Domino's for more than two decades, had sought to shift Britain's biggest pizza food delivery firm towards fried chicken, commenting earlier this month there was not “significant expansion” left in the UK's pizza market. He noted poultry was the fastest-growing protein in the international market.
Board Tensions
It is understood that there was disagreement between the CEO and the directors over his focus and management style, although the company's release said he was leaving “through mutual consent”.
New Brand Launch
In the autumn, Domino's launched its poultry offering – which the former chief called a “major strategic shift” for the group – and is trialling it in over 200 locations in the north-west of England and Northern Ireland.
While the business is still intending to launch it across its extensive network in 2026 as scheduled, it views chicken products as an addition to its main pizza offerings.
Board Statement
Ian Bull, the company chairman, commented: “We are confident that there are a range of possibilities to boost expansion and value creation in the main pizza segment. We are concentrating on identifying the right chief executive to lead the systematic rollout of that growth strategy.”
Industry Difficulties
Earlier this month, Domino's, which has millions of users in the UK and Ireland, said sales dipped by one and a half percent in the latest quarter. In August, it warned that the takeaway market had “grown more challenging” as it blamed weaker consumer confidence in the run-up to the government announcement and higher payroll outlays for below-target performance and a significant fall in six-month income.
Rival chains are also facing challenges. Pizza Hut disclosed the closure of dozens of outlets a last month, after the company behind its British operations entered insolvency.
Wellness Efforts
Responding to market shifts towards healthier eating, the company has introduced reduced-calorie products, such as its Thin & Crispy range of bakes below 400 calories as well as plant-based and allergy-friendly options. A large pepperoni pizza has 2,311 kcals. A large cheese and tomato pizza has 2,171, while a small has 909 calories.
Interim Management
Nicola Frampton has been with Domino's since the recent past, and had a background at the gambling company a well-known operator. It is thought that she does not want to assume the CEO position long-term.
She commented: “We have a multiple active growth and performance initiatives that we will be concentrating on executing at speed.”
She said these included further work on the organization's procurement system and new item creation, and its customer retention initiative.
Domino's is also lacking a full-time chief financial officer until March 16, when Andrea joins from the Irish cider and beer maker C&C Group. Until then, Snow serves as acting financial officer.