Has Pizza Peaked? Domino's Pizza CEO Departs Following Shift Towards Chicken.

The boss of the UK's Domino's Pizza chain who suggested the United Kingdom might have hit pizza saturation while diversifying the franchise into fried chicken has been removed after conflicts with its board.

Leadership Transition

Rennie is exiting after only 24 months in charge, and will be succeeded on an interim basis by the organization's chief operating officer, Frampton, while the pizza giant searches for a long-term chief.

Rennie, who was with the company for a substantial period, had sought to shift Britain's leading pizza delivery company towards fried chicken, stating earlier this month there was not “massive growth” left in the pizza sector in the UK. He said chicken was the fastest-growing protein in the globe.

Governance Disagreements

It is understood that there was friction between Rennie and the board over his approach and direction, although the company's official statement said he was leaving “through mutual consent”.

Recent Brand Launch

In September, the chain introduced its poultry offering – which the former chief described as a “major strategic shift” for the organization – and is trialling it in over 200 locations in the North West region and Northern Ireland.

While the company is still going to roll it out across its extensive network in the coming year as intended, it considers fried chicken as complementary to its main pizza offerings.

Board Comment

Ian Bull, the Domino's chair, commented: “We are confident that there are a range of possibilities to boost expansion and value creation in our primary operations. We are concentrating on selecting the right chief executive to lead the careful implementation of that growth strategy.”

Market Difficulties

Earlier this month, Domino's, which has 13 million customers in the UK and Ireland, said orders fell by one and a half percent in the Q3. In August, it warned that the takeaway market had “grown more challenging” as it attributed reduced spending in the run-up to the budget and higher payroll outlays for disappointing revenue and a 15% drop in six-month income.

Rival chains are also facing challenges. Pizza Hut disclosed the closure of 68 restaurants a last month, after the company behind its outlets entered insolvency.

Health Efforts

Responding to customer preferences towards healthier eating, Domino's has launched lower-calorie products, such as its light base range of pizzas below 400 kcal as well as plant-based and allergy-friendly pizzas. A large pepperoni pizza has over 2,300 kcal. A large cheese and tomato pizza has 2,171, while a personal has 909 kcal.

Interim Management

Frampton has been with the company since 2021, and was formerly with the betting firm William Hill. It is believed that she does not want to assume the CEO position on a full-time basis.

She commented: “The company has a multiple active expansion and performance initiatives that we will be dedicated to executing at pace.”

Frampton noted these comprised ongoing development on the organization's logistics network and new item creation, and its rewards program.

The pizza chain is also in need of a permanent CFO until March 16, when Andy Andrea starts from the Irish cider and beer maker C&C Group. In the meantime, Snow is temporary CFO.