Peak Pizza? Domino's Leader Steps Down Following Pivot Into Chicken.
A chief executive of Domino's Pizza Group who suggested the UK might have hit maximum pizza demand while expanding the franchise into poultry items has been ousted after disagreements with its board.
Leadership Change
Andrew Rennie is leaving after a brief tenure in charge, and will be replaced on an temporary basis by the organization's operations head, Frampton, while the pizza giant looks for a long-term chief.
Rennie, who served at the company for more than two decades, had aimed to pivot the UK's largest pizza takeaway chain towards chicken offerings, stating earlier this month there was not “significant expansion” left in the UK's pizza market. He noted chicken was the fastest-growing menu item in the globe.
Governance Tensions
It is understood that there was disagreement between the CEO and the directors over his approach and direction, although the company's release said he was stepping down “by mutual agreement”.
Recent Product Launch
In September, Domino's launched its poultry offering – which Rennie called a “major strategic shift” for the group – and is testing it in over 200 locations in the north-west of England and the province.
While the business is still planning to expand it across its extensive network in the coming year as planned, it views fried chicken as a supplement for its main pizza offerings.
Board Statement
The Domino's chair, the company chairman, said: “We are confident that there are a series of prospects to boost expansion and value creation in our primary operations. We are prioritizing finding the right chief executive to direct the careful implementation of that expansion plan.”
Market Difficulties
Earlier this month, the pizza delivery giant, which has millions of users in the British Isles, said transactions declined by 1.5% in the third quarter. In the summer, it warned that the food delivery sector had “intensified” as it attributed weaker consumer confidence in the run-up to the government announcement and increasing labor expenses for below-target performance and a 15% drop in six-month income.
Other pizza operators are also facing challenges. Pizza Hut revealed the closing of multiple locations a month ago, after the company behind its British operations fell into administration.
Wellness Efforts
Adapting to market shifts towards balanced diets, Domino's has launched reduced-calorie products, such as its Thin & Crispy line of bakes below 400 calories as well as vegan and wheat-free pizzas. A big pepperoni bake has 2,311 calories. A large cheese and tomato pizza has over 2,100, while a individual has 909 kcal.
Interim Leadership
The interim chief has been with Domino's since 2021, and had a background at the gaming group William Hill. It is believed that she does not want to assume the chief executive role long-term.
She said: “The company has a multiple active development and efficiency programs that we will be dedicated to carrying out at speed.”
Frampton noted these involved ongoing development on the company's logistics network and product development, and its customer retention initiative.
The pizza chain is also lacking a long-term chief financial officer until the spring, when a new appointee comes aboard from the Irish cider and beer maker C&C Group. For now, Snow acts as temporary CFO.