Has Pizza Peaked? Domino's CEO Steps Down Following Shift Into Fried Chicken.

A boss of the UK's Domino's Pizza chain who suggested the UK might have hit peak pizza while broadening the franchise into poultry items has been removed after tensions with its directors.

Leadership Transition

Rennie is departing after only 24 months in leadership, and will be replaced on an temporary basis by the company's chief operating officer, Nicola Frampton, while the pizza giant seeks a permanent CEO.

The outgoing executive, who was with the company for a substantial period, had sought to pivot the UK's biggest pizza takeaway chain towards fried chicken, commenting recently there was not “massive growth” left in the UK's pizza market. He observed poultry was the quickest rising menu item in the world.

Governance Friction

Reports indicate that there was friction between the CEO and the board over his strategy and business vision, although the company's release said he was departing “through mutual consent”.

Recent Brand Introduction

In the autumn, the chain launched its chicken-focused offering – which Rennie referred to as a “major strategic shift” for the company – and is testing it in 210 outlets in the North West region and the province.

While the business is still going to roll it out across its extensive network next year as scheduled, it views chicken products as an addition to its main pizza offerings.

Leadership Statement

Bull, the Domino's chair, commented: “We are confident that there are a series of prospects to enhance value and performance improvement in the main pizza segment. We are concentrating on identifying the ideal CEO to lead the careful implementation of that expansion plan.”

Industry Difficulties

Earlier this month, Domino's, which has 13 million customers in the UK and Ireland, said transactions fell by 1.5 percent in the latest quarter. In August, it alerted that the takeaway market had “become tougher” as it attributed weaker consumer confidence in the lead-up to the budget and higher payroll outlays for below-target performance and a 15 percent decline in interim earnings.

Other pizza operators are also experiencing difficulties. Pizza Hut disclosed the shutting of 68 restaurants a recently, after the company behind its British operations fell into administration.

Wellness Initiatives

Trying to keep up with consumer trends towards healthier eating, the company has launched reduced-calorie options, such as its Thin & Crispy line of pizzas below 400 kcals as well as meat-free and wheat-free options. A family-sized pepperoni has 2,311 calories. A large cheese and tomato pizza has 2,171, while a individual has under 1,000 calories.

Acting Management

The interim chief has been with Domino's since 2021, and previously worked for the betting firm William Hill. It is believed that she does not want to take on the top job long-term.

She commented: “The company has a number of current expansion and efficiency programs that we will be concentrating on carrying out at speed.”

She said these comprised additional efforts on the organization's procurement system and menu innovation, and its loyalty scheme.

The pizza chain is also lacking a full-time chief financial officer until 16 March, when a new appointee joins from the drinks company C&C Group. In the meantime, Snow acts as temporary CFO.

Charles Wilson
Charles Wilson

A passionate writer and researcher with a background in digital media, dedicated to sharing knowledge and sparking meaningful conversations.