Peak Pizza? Domino's Leader Departs Following Move Towards Chicken.
The chief executive of Domino's Pizza Group who indicated the UK might have hit maximum pizza demand while expanding the company into chicken products has been removed after tensions with its governing body.
Leadership Shake-Up
The former CEO is departing after only 24 months in leadership, and will be replaced on an temporary basis by the company's operations head, Frampton, while the pizza giant seeks a long-term chief.
Rennie, who worked for the company for more than two decades, had aimed to redirect Britain's leading pizza food delivery firm towards fried chicken, remarking earlier this month there was not “huge potential” left in the pizza sector in the UK. He noted poultry was the quickest rising menu item in the world.
Board Tensions
Reports indicate that there was friction between the CEO and the directors over his approach and direction, although the company's official statement said he was leaving “as a joint decision”.
Recent Product Introduction
In the autumn, the chain unveiled its poultry brand – which Rennie called a “bold new chapter” for the group – and is piloting it in select stores in the north-west of England and Northern Ireland.
While the firm is still intending to launch it across its almost 1,400 stores next year as scheduled, it regards fried chicken as a supplement for its primary pizza operations.
Leadership Statement
The Domino's chair, the Domino's chair, stated: “The board believes that there are a series of prospects to drive further growth and profitability in our primary operations. We are concentrating on finding the suitable leader to direct the careful implementation of that development approach.”
Market Challenges
Earlier this month, Domino's, which has millions of users in the UK and Ireland, said orders declined by 1.5 percent in the Q3. In the summer, it warned that the takeaway market had “intensified” as it blamed reduced spending in the run-up to the budget and increasing labor expenses for below-target performance and a 15 percent decline in half-year profits.
Competitors are also struggling. Pizza Hut announced the closing of dozens of outlets a last month, after the firm behind its outlets faced financial collapse.
Health Initiatives
Responding to customer preferences towards healthier eating, Domino's has rolled out light items, such as its light base range of pizzas below 400 calories as well as vegan and gluten-free options. A big pepperoni bake has over 2,300 kcal. A big margherita has 2,171 kcal, while a individual has 909 calories.
Interim Leadership
Nicola Frampton has been with Domino's since 2021, and previously worked for the gambling company William Hill. It is understood that she prefers not to take on the chief executive role long-term.
She commented: “We have a several active expansion and performance initiatives that we will be dedicated to executing at a rapid rate.”
Frampton noted these involved further work on the company's supply chain and product development, and its rewards program.
Domino's is also lacking a permanent chief financial officer until the spring, when a new appointee starts from the drinks company C&C Group. For now, Snow serves as interim finance chief.