Peak Pizza? Domino's Pizza CEO Steps Down Following Shift Into Fried Chicken.

A boss of the UK's Domino's Pizza chain who indicated the UK might have hit pizza saturation while expanding the chain into fried chicken has been removed after conflicts with its governing body.

Executive Change

Rennie is exiting after just two years in charge, and will be replaced on an temporary basis by the company's operations head, Nicola Frampton, while the pizza giant seeks a new leader.

The outgoing executive, who was with Domino's for more than two decades, had sought to pivot Britain's leading pizza delivery company towards fried chicken, remarking in a recent interview there was not “significant expansion” left in the British pizza industry. He said poultry was the quickest rising menu item in the international market.

Governance Tensions

It is understood that there was tension between the CEO and the board over his focus and business vision, although Domino's release said he was leaving “through mutual consent”.

New Brand Launch

In the autumn, the chain unveiled its chicken-focused product line – which the former chief referred to as a “major strategic shift” for the group – and is testing it in select stores in the north-west of England and the province.

While the company is still intending to launch it across its nearly 1,400 branches in the coming year as scheduled, it considers chicken products as an addition to its main pizza offerings.

Leadership Comment

Bull, the company chairman, said: “Directors think that there are a number of opportunities to boost expansion and value creation in Domino's core business. We are focused on finding the suitable leader to direct the disciplined execution of that growth strategy.”

Industry Difficulties

Earlier this month, the pizza delivery giant, which has millions of users in the UK and Ireland, said transactions fell by 1.5 percent in the latest quarter. In the summer, it cautioned that the food delivery sector had “intensified” as it attributed economic uncertainty in the period before the government announcement and increasing labor expenses for disappointing revenue and a 15 percent decline in six-month income.

Other pizza operators are also facing challenges. Another major chain announced the shutting of dozens of outlets a last month, after the company behind its British operations entered insolvency.

Wellness Initiatives

Trying to keep up with customer preferences towards balanced diets, the company has rolled out light items, such as its light base range of bakes below 400 kcals as well as meat-free and gluten-free pizzas. A big pepperoni bake has 2,311 kcals. A big margherita has over 2,100, while a small has under 1,000 calories.

Acting Leadership

The interim chief has been with Domino's since the recent past, and previously worked for the gaming group William Hill. It is understood that she does not want to take on the top job long-term.

Frampton stated: “The company has a number of active expansion and performance initiatives that we will be concentrating on carrying out at pace.”

She added these included further work on the organization's procurement system and menu innovation, and its customer retention initiative.

The pizza chain is also lacking a full-time finance director until 16 March, when Andrea comes aboard from the Irish cider and beer maker C&C Group. Until then, Richard Snow is temporary CFO.

Deborah Woods
Deborah Woods

Blockchain enthusiast and finance writer with over a decade of experience in crypto investments and mobile tech.