Has Pizza Peaked? Domino's Chief Executive Departs After Move Into Chicken.
A head of the UK's Domino's Pizza chain who suggested the UK might have reached pizza saturation while diversifying the company into poultry items has been ousted after conflicts with its directors.
Executive Change
Andrew Rennie is departing after a brief tenure in leadership, and will be replaced on an acting basis by the company's chief operating officer, Frampton, while the pizza giant seeks a long-term chief.
Rennie, who served at Domino's for a substantial period, had sought to redirect 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 observed poultry was the most rapidly expanding protein in the international market.
Governance Disagreements
Sources suggest that there was disagreement between Rennie and the directors over his approach and direction, although Domino's official statement said he was stepping down “by mutual agreement”.
New Product Launch
In the autumn, the chain launched its poultry brand – which Rennie called a “bold new chapter” for the company – and is piloting it in select stores in the North West region and the province.
While the company is still planning to expand it across its almost 1,400 stores in the coming year as planned, it views fried chicken as complementary to its core pizza business.
Board Statement
Bull, the company chair, said: “We are confident that there are a number of opportunities to boost expansion and profitability in the main pizza segment. We are concentrating on finding the right chief executive to lead the disciplined execution of that development approach.”
Industry Difficulties
Recently, Domino's, which has 13 million customers in the UK and Ireland, said orders dipped by 1.5 percent in the Q3. In August, it cautioned that the quick-service industry had “become tougher” as it blamed economic uncertainty in the period before the budget and higher payroll outlays for weaker-than-expected sales and a significant fall in six-month income.
Competitors are also facing challenges. Another major chain revealed the shutting of dozens of outlets a month ago, after the company behind its UK venues fell into administration.
Wellness Efforts
Responding to consumer trends towards healthier eating, Domino's has introduced light options, such as its light base range of bakes below 400 kcals as well as plant-based and wheat-free options. A big pepperoni bake has 2,311 kcals. A big margherita has 2,171 kcal, while a individual has 909 calories.
Acting Leadership
The interim chief has been with the company since 2021, and was formerly with the betting firm a well-known operator. It is understood that she is not seeking to take on the chief executive role long-term.
She said: “We have a several current development and efficiency programs that we will be focused on carrying out at a rapid rate.”
Frampton noted these comprised ongoing development on the organization's supply chain and new item creation, and its customer retention initiative.
The pizza chain is also in need of a full-time finance director until 16 March, when Andrea starts from the drinks company a well-known firm. For now, Snow acts as interim finance chief.