Peak Pizza? Domino's Pizza CEO Exits Following Pivot Towards Fried Chicken.

A boss of the UK's Domino's Pizza chain who proposed the UK might have hit maximum pizza demand while broadening the company into poultry items has been ousted after disagreements with its board.

Executive Change

Andrew Rennie is exiting after only 24 months in charge, and will be succeeded on an acting basis by the organization's chief operating officer, Frampton, while Domino's seeks a permanent CEO.

Rennie, who was with the company for a substantial period, had sought to shift Britain's biggest pizza delivery company towards fried chicken, remarking recently there was not “huge potential” left in the British pizza industry. He said poultry was the most rapidly expanding protein in the world.

Governance Disagreements

It is understood that there was friction between Rennie and the board over his strategy and business vision, although Domino's announcement said he was leaving “by mutual agreement”.

Recent Product Introduction

In September, the chain unveiled its Chick 'N' Dip product line – which the former chief referred to as a “bold new chapter” for the company – and is trialling it in 210 outlets in the North West region and Northern Ireland.

While the business is still planning to expand it across its extensive network in the coming year as intended, it views fried chicken as an addition to its main pizza offerings.

Leadership Comment

Bull, the Domino's chairman, commented: “We are confident that there are a number of opportunities to drive further growth and performance improvement in Domino's core business. We are focused on identifying the right chief executive to lead the disciplined execution of that development approach.”

Industry Difficulties

Earlier this month, the pizza delivery giant, which has a substantial customer base in the UK and Ireland, said transactions declined by one and a half percent in the third quarter. In August, it alerted that the takeaway market had “become tougher” as it blamed reduced spending in the lead-up to the budget and increasing labor expenses for disappointing revenue and a 15% drop in six-month income.

Rival chains are also facing challenges. Another major chain disclosed the closure of dozens of outlets a month ago, after the business behind its outlets fell into administration.

Health Initiatives

Trying to keep up with market shifts towards healthier eating, Domino's has introduced light items, such as its thin-crust selection of pizzas below 400 kcal as well as vegan and wheat-free options. A large pepperoni pizza has 2,311 calories. A family cheese pizza has 2,171 kcal, while a personal has 909 kcal.

Acting Leadership

The interim chief has been with Domino's since 2021, and had a background at the betting firm William Hill. It is thought that she is not seeking to occupy the top job long-term.

Frampton stated: “The company has a multiple current growth and efficiency programs that we will be focused on carrying out at pace.”

Frampton noted these involved further work on the company's procurement system and product development, and its loyalty scheme.

The pizza chain is also in need of a permanent chief financial officer until the spring, when Andrea comes aboard from the beverage producer C&C Group. For now, Richard Snow is interim finance chief.