Has Pizza Peaked? Domino's Chief Executive Steps Down Following Pivot Towards Fried Chicken.

A head of Domino's Pizza Group who indicated the UK might have hit pizza saturation while diversifying the chain into chicken products has been ousted after tensions with its governing body.

Executive Transition

Rennie is leaving after only 24 months in leadership, and will be replaced on an temporary basis by the company's chief operating officer, Nicola Frampton, while Domino's searches for a new leader.

Rennie, who was with the company for more than two decades, had attempted to pivot Britain's largest pizza takeaway chain towards poultry-based products, commenting earlier this month there was not “huge potential” left in the pizza sector in the UK. He observed poultry was the quickest rising food category in the international market.

Board Friction

It is understood that there was friction between the CEO and the directors over his strategy and business vision, although the company's official statement said he was departing “through mutual consent”.

New Brand Introduction

In the autumn, the chain introduced its Chick 'N' Dip brand – which the former chief described as a “bold new chapter” for the company – and is testing it in over 200 locations in the North West region and the province.

While the business is still intending to launch it across its extensive network next year as scheduled, it regards fried chicken as complementary to its core pizza business.

Board Comment

Ian Bull, the company chairman, said: “We are confident that there are a number of opportunities to enhance value and profitability in our primary operations. We are concentrating on selecting the suitable leader to oversee the careful implementation of that development approach.”

Market Challenges

Recently, Domino's, which has a substantial customer base in the British Isles, said sales declined by 1.5% in the Q3. In the summer, it alerted that the quick-service industry had “intensified” as it blamed weaker consumer confidence in the lead-up to the budget and rising wage costs for below-target performance and a 15 percent decline in six-month income.

Other pizza operators are also struggling. Pizza Hut revealed the closure of dozens of outlets a last month, after the business behind its British operations faced financial collapse.

Wellness Efforts

Trying to keep up with consumer trends towards balanced diets, the company has introduced lower-calorie items, such as its light base line of pizzas below 400 calories as well as meat-free and allergy-friendly options. A big pepperoni bake has over 2,300 kcal. A big margherita has 2,171, while a individual has 909 kcal.

Acting Leadership

Frampton has been with Domino's since 2021, and was formerly with the betting firm a well-known operator. It is believed that she does not want to take on the chief executive role long-term.

She commented: “We have a number of current growth and operational projects that we will be concentrating on carrying out at a rapid rate.”

Frampton noted these comprised further work on the company's logistics network and menu innovation, and its rewards program.

The pizza chain is also without a permanent finance director until March 16, when a new appointee starts from the beverage producer a well-known firm. Until then, Richard Snow serves as temporary CFO.

Timothy Riley
Timothy Riley

A seasoned travel writer and luxury consultant with over a decade of experience exploring the world's most exclusive destinations.