Has Pizza Peaked? Domino's Pizza Chief Executive Steps Down Following Move Into Fried Chicken.

The head of the UK's Domino's Pizza chain who proposed the UK might have hit maximum pizza demand while broadening the company into chicken products has been replaced after conflicts with its directors.

Executive Change

The former CEO is leaving after just two years in leadership, and will be replaced on an temporary basis by the organization's chief operating officer, Frampton, while Domino's looks for a new leader.

Rennie, who served at the company for over 20 years, had aimed to shift Britain's leading pizza takeaway chain towards chicken offerings, stating in a recent interview there was not “significant expansion” left in the pizza sector in the UK. He observed poultry was the quickest rising food category in the globe.

Governance Disagreements

It is understood that there was tension between the CEO and the directors over his focus and business vision, although the company's announcement said he was stepping down “as a joint decision”.

New Brand Introduction

In the autumn, the chain introduced its poultry brand – which Rennie described as a “significant new phase” for the company – and is trialling it in over 200 locations in the North West region and Northern Ireland.

While the company is still intending to launch it across its almost 1,400 stores in the coming year as intended, it considers fried chicken as an addition to its main pizza offerings.

Board Comment

Bull, the Domino's chair, stated: “Directors think that there are a number of opportunities to boost expansion and performance improvement in Domino's core business. We are concentrating on selecting the right chief executive to direct the systematic rollout of that development approach.”

Industry Difficulties

In the latest update, Domino's, which has a substantial customer base in the UK and Ireland, said transactions dipped by one and a half percent in the third quarter. In August, it warned that the quick-service industry had “intensified” as it blamed economic uncertainty in the period before the budget and increasing labor expenses for below-target performance and a 15% drop in half-year profits.

Competitors are also facing challenges. Another major chain announced the shutting of dozens of outlets a recently, after the company behind its British operations faced financial collapse.

Wellness Efforts

Responding to market shifts towards better nutrition, the company has introduced light items, such as its Thin & Crispy range of bakes below 400 kcal as well as plant-based and gluten-free pizzas. A big pepperoni bake has over 2,300 kcal. A large cheese and tomato pizza has over 2,100, while a individual has 909 calories.

Interim Leadership

Frampton has been with the company since 2021, and previously worked for the gambling company a well-known operator. It is understood that she does not want to take on the top job permanently.

She commented: “The company has a multiple current expansion and efficiency programs that we will be concentrating on carrying out at speed.”

Frampton noted these involved further work on the company's procurement system and menu innovation, and its customer retention initiative.

The pizza chain is also without a long-term CFO until 16 March, when a new appointee joins from the drinks company C&C Group. Until then, Snow acts as acting financial officer.