Has Pizza Peaked? Domino's Pizza Leader Departs Following Pivot Into Chicken.
A boss of the UK's Domino's Pizza chain who indicated the United Kingdom might have reached pizza saturation while expanding the franchise into chicken products has been removed after tensions with its governing body.
Executive Change
The former CEO is departing after only 24 months in leadership, and will be succeeded on an interim basis by the organization's chief operating officer, Nicola Frampton, while Domino's looks for a new leader.
Rennie, who was with the company for a substantial period, had attempted to redirect Britain's largest pizza delivery company towards poultry-based products, stating in a recent interview there was not “significant expansion” left in the British pizza industry. He noted poultry was the quickest rising protein in the international market.
Board Tensions
It is understood that there was disagreement between the CEO and the board over his strategy and direction, although the company's official statement said he was stepping down “as a joint decision”.
Recent Product Introduction
In the autumn, Domino's introduced its Chick 'N' Dip offering – which Rennie referred to as a “significant new phase” for the organization – and is trialling it in 210 outlets in the north-west of England and Northern Ireland.
While the company is still planning to expand it across its nearly 1,400 branches in the coming year as intended, it regards fried chicken as complementary to its core pizza business.
Board Comment
Ian Bull, the company chair, stated: “The board believes that there are a number of opportunities to drive further growth and performance improvement in the main pizza segment. We are concentrating on finding the right chief executive to lead the disciplined execution of that growth strategy.”
Industry Challenges
Earlier this month, Domino's, which has 13 million customers in the British Isles, said orders fell by 1.5 percent in the latest quarter. In August, it cautioned that the food delivery sector had “intensified” as it attributed reduced spending in the lead-up to the budget and increasing labor expenses for below-target performance and a 15 percent decline in six-month income.
Rival chains are also facing challenges. Another major chain announced the closing of 68 restaurants a month ago, after the company behind its outlets faced financial collapse.
Wellness Efforts
Responding to consumer trends towards balanced diets, the company has introduced reduced-calorie products, such as its thin-crust line of pizzas below 400 kcal as well as meat-free and gluten-free options. A family-sized pepperoni has 2,311 kcals. A family cheese pizza has 2,171 kcal, while a individual has 909 calories.
Acting Leadership
Nicola Frampton has been with the company since 2021, and previously worked for the gaming group William Hill. It is believed that she does not want to take on the chief executive role permanently.
She commented: “Our team has a multiple ongoing development and efficiency programs that we will be concentrating on implementing at pace.”
Frampton noted these included additional efforts on the organization's logistics network and new item creation, and its loyalty scheme.
Domino's is also in need of a full-time finance director until 16 March, when a new appointee comes aboard from the drinks company a well-known firm. Until then, Richard Snow acts as interim finance chief.