Peak Pizza? Domino's Chief Executive Steps Down Following Shift Towards Chicken.
The head of Domino's Pizza Group who indicated the UK might have reached maximum pizza demand while diversifying the franchise into chicken products has been removed after conflicts with its board.
Executive Transition
Rennie is departing after only 24 months in charge, and will be succeeded on an temporary basis by the company's chief operating officer, Frampton, while the pizza giant looks for a long-term chief.
Rennie, who worked for Domino's for a substantial period, had sought to shift the UK's biggest pizza takeaway chain towards poultry-based products, remarking recently there was not “significant expansion” left in the British pizza industry. He noted chicken was the fastest-growing food category in the international market.
Governance Tensions
Sources suggest that there was friction between the CEO and the governance team over his approach and direction, although Domino's announcement said he was stepping down “as a joint decision”.
Recent Product Introduction
In September, Domino's introduced its poultry brand – which Rennie described as a “major strategic shift” for the organization – and is piloting 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 almost 1,400 stores next year as planned, it views fried chicken as complementary to its main pizza offerings.
Board Comment
Bull, the company chair, commented: “We are confident that there are a range of possibilities to drive further growth and performance improvement in the main pizza segment. We are concentrating on selecting the right chief executive to direct the disciplined execution of that expansion plan.”
Industry Difficulties
Recently, Domino's, which has millions of users in the UK and Ireland, said orders fell by 1.5 percent in the latest quarter. In August, it cautioned that the food delivery sector had “become tougher” as it attributed weaker consumer confidence in the run-up to the government announcement and increasing labor expenses for weaker-than-expected sales and a 15 percent decline in half-year profits.
Competitors are also struggling. Another major chain revealed the closing of 68 restaurants a month ago, after the firm behind its British operations faced financial collapse.
Wellness Efforts
Trying to keep up with market shifts towards balanced diets, the company has rolled out lower-calorie products, such as its thin-crust selection of bakes below 400 calories as well as vegan and wheat-free pizzas. A large pepperoni pizza has 2,311 calories. A big margherita has 2,171, while a individual has 909 kcal.
Interim Leadership
Frampton has been with Domino's since 2021, and was formerly with the gaming group William Hill. It is thought that she is not seeking to assume the chief executive role permanently.
She commented: “The company has a several ongoing growth and efficiency programs that we will be dedicated to carrying out at a rapid rate.”
Frampton noted these comprised additional efforts on the organization's procurement system and menu innovation, and its rewards program.
Domino's is also in need of a full-time finance director until the spring, when Andrea comes aboard from the drinks company C&C Group. For now, Richard Snow acts as interim finance chief.