Peak Pizza? Domino's Pizza Leader Departs After Move Towards Fried Chicken.
A chief executive of the UK's Domino's Pizza chain who suggested the United Kingdom might have reached maximum pizza demand while expanding the chain into chicken products has been removed after disagreements with its directors.
Executive Transition
Rennie is exiting after only 24 months in charge, and will be replaced on an temporary basis by the company's chief operating officer, Nicola Frampton, while Domino's seeks a new leader.
Rennie, who was with Domino's for over 20 years, had aimed to redirect the UK's leading pizza food delivery firm towards poultry-based products, commenting recently there was not “significant expansion” left in the pizza sector in the UK. He observed chicken was the quickest rising menu item in the international market.
Board Friction
Reports indicate that there was friction between Rennie and the directors over his focus and business vision, although Domino's official statement said he was leaving “as a joint decision”.
New Brand Introduction
In September, Domino's unveiled its poultry brand – which Rennie referred to as a “significant new phase” for the company – and is piloting it in over 200 locations in the north-west of England and the province.
While the company is still going to roll it out across its extensive network in the coming year as planned, it views fried chicken as an addition to its primary pizza operations.
Board Statement
Ian Bull, the company chairman, commented: “Directors think that there are a number of opportunities to enhance value and value creation in Domino's core business. We are prioritizing selecting the suitable leader to oversee the disciplined execution of that expansion plan.”
Market Difficulties
Earlier this month, the pizza delivery giant, which has millions of users in the UK and Ireland, said transactions declined by one and a half percent in the Q3. In August, it warned that the food delivery sector had “grown more challenging” as it blamed weaker consumer confidence in the period before the budget and rising wage costs for disappointing revenue and a 15% drop in six-month income.
Other pizza operators are also experiencing difficulties. Another major chain revealed the closure of dozens of outlets a last month, after the business behind its outlets fell into administration.
Wellness Efforts
Responding to customer preferences towards balanced diets, Domino's has launched reduced-calorie products, such as its Thin & Crispy line of bakes below 400 kcal as well as meat-free and allergy-friendly options. A large pepperoni pizza has 2,311 calories. A family cheese pizza has 2,171 kcal, while a small has 909 kcal.
Interim Management
Frampton has been with the company since 2021, and previously worked for the betting firm William Hill. It is understood that she is not seeking to take on the CEO position on a full-time basis.
She said: “Our team has a multiple active growth and operational projects that we will be concentrating on executing at a rapid rate.”
She said these comprised ongoing development on the organization's supply chain and new item creation, and its customer retention initiative.
The pizza chain is also in need of a long-term finance director until the spring, when Andrea starts from the drinks company a well-known firm. For now, Richard Snow acts as interim finance chief.