Has Pizza Peaked? Domino's Chief Executive Departs After Shift Into Chicken.
A head of the UK's Domino's Pizza chain who suggested the United Kingdom might have reached maximum pizza demand while diversifying the company into poultry items has been removed after disagreements with its board.
Leadership Change
Rennie is departing after a brief tenure in leadership, and will be succeeded on an acting basis by the company's chief operating officer, Nicola Frampton, while the pizza giant seeks a long-term chief.
Rennie, who worked for Domino's for a substantial period, had sought to redirect the UK's leading pizza takeaway chain towards chicken offerings, stating recently there was not “huge potential” left in the pizza sector in the UK. He observed poultry was the quickest rising food category in the international market.
Board Friction
It is understood that there was tension between the CEO and the directors over his approach and business vision, although Domino's announcement said he was leaving “through mutual consent”.
New Brand Introduction
In September, the chain introduced its poultry product line – which the former chief referred to as a “major strategic shift” for the group – and is trialling it in 210 outlets in the north-west of England and the province.
While the firm is still going to roll it out across its extensive network in the coming year as scheduled, it regards chicken products as a supplement for its main pizza offerings.
Board Comment
Bull, the company chairman, stated: “Directors think that there are a series of prospects to boost expansion and profitability in the main pizza segment. We are concentrating on finding the ideal CEO to direct the disciplined execution of that expansion plan.”
Market Difficulties
Earlier this month, Domino's, which has 13 million customers in the British Isles, said sales declined by one and a half percent in the latest quarter. In the summer, it alerted that the takeaway market had “intensified” as it attributed weaker consumer confidence in the period before the government announcement and rising wage costs for disappointing revenue and a 15% drop in interim earnings.
Rival chains are also struggling. Pizza Hut announced the closure of dozens of outlets a last month, after the business behind its outlets entered insolvency.
Health Initiatives
Responding to market shifts towards balanced diets, the company has rolled out lower-calorie options, such as its Thin & Crispy range of pizzas below 400 kcal as well as plant-based and allergy-friendly options. A big pepperoni bake has over 2,300 kcal. A big margherita has 2,171, while a small has under 1,000 calories.
Interim Leadership
The interim chief has been with Domino's since 2021, and was formerly with the betting firm a well-known operator. It is understood that she does not want to take on the chief executive role on a full-time basis.
She said: “The company has a several ongoing expansion and operational projects that we will be concentrating on carrying out at a rapid rate.”
She added these comprised additional efforts on the organization's procurement system and menu innovation, and its customer retention initiative.
Domino's is also without a full-time finance director until 16 March, when Andy Andrea comes aboard from the drinks company a well-known firm. In the meantime, Snow acts as acting financial officer.