Has Pizza Peaked? Domino's CEO Exits After Move Into Chicken.

The chief executive of Domino's Pizza Group who proposed the United Kingdom might have hit peak pizza while expanding the franchise into fried chicken has been replaced after disagreements with its directors.

Executive Change

Rennie is leaving after a brief tenure in charge, and will be replaced on an acting basis by the organization's operations head, Nicola Frampton, while Domino's looks for a new leader.

Rennie, who was with the company for more than two decades, had attempted to redirect the UK's leading pizza delivery company towards fried chicken, stating in a recent interview there was not “huge potential” left in the British pizza industry. He said chicken was the quickest rising protein in the international market.

Board Disagreements

Reports indicate that there was disagreement between the CEO and the directors over his focus and business vision, although Domino's official statement said he was leaving “through mutual consent”.

New Brand Launch

In the autumn, the chain unveiled its Chick 'N' Dip brand – which Rennie described as a “significant new phase” for the company – and is piloting it in select stores in the North West region and the province.

While the business is still planning to expand it across its almost 1,400 stores next year as scheduled, it regards fried chicken as an addition to its primary pizza operations.

Leadership Comment

The Domino's chair, the Domino's chair, commented: “The board believes that there are a range of possibilities to boost expansion and profitability in Domino's core business. We are focused on selecting the ideal CEO to direct the careful implementation of that development approach.”

Market Difficulties

In the latest update, Domino's, which has a substantial customer base in the British Isles, said sales fell by 1.5 percent in the Q3. In August, it warned that the quick-service industry had “grown more challenging” as it blamed reduced spending in the run-up to the budget and rising wage costs for disappointing revenue and a significant fall in interim earnings.

Other pizza operators are also struggling. Pizza Hut revealed the closure of dozens of outlets a last month, after the firm behind its UK venues entered insolvency.

Wellness Initiatives

Trying to keep up with customer preferences towards better nutrition, Domino's has rolled out light options, such as its Thin & Crispy range of bakes below 400 kcals as well as plant-based and wheat-free pizzas. A big pepperoni bake has 2,311 kcals. A large cheese and tomato pizza has 2,171 kcal, while a individual has 909 kcal.

Acting Management

Nicola Frampton has been with Domino's since the recent past, and had a background at the gambling company William Hill. It is understood that she does not want to take on the CEO position long-term.

She said: “We have a several current expansion and efficiency programs that we will be dedicated to executing at a rapid rate.”

Frampton noted these included further work on the organization's supply chain and product development, and its customer retention initiative.

Domino's is also without a permanent CFO until 16 March, when Andrea joins from the Irish cider and beer maker a well-known firm. For now, Snow is acting financial officer.

Kevin Watson
Kevin Watson

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