Has Pizza Peaked? Domino's Pizza Chief Executive Steps Down After Pivot Towards Chicken.

The head of Domino's Pizza Group who suggested the United Kingdom might have hit maximum pizza demand while diversifying the chain into fried chicken has been removed after disagreements with its directors.

Executive Change

The former CEO is departing after only 24 months in charge, and will be succeeded on an temporary basis by the organization's chief operating officer, Nicola Frampton, while Domino's looks for a new leader.

Rennie, who worked for Domino's for more than two decades, had sought to redirect the UK's biggest pizza delivery company towards chicken offerings, commenting earlier this month there was not “huge potential” left in the pizza sector in the UK. He said poultry was the most rapidly expanding protein in the world.

Governance Friction

It is understood that there was tension between the CEO and the directors over his strategy and management style, although Domino's release said he was stepping down “by mutual agreement”.

New Product Launch

In the autumn, the chain introduced its poultry offering – which the former chief called a “significant new phase” for the company – and is piloting it in select stores 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 regards chicken products as a supplement for its main pizza offerings.

Leadership Comment

Bull, the company chairman, said: “We are confident that there are a range of possibilities to boost expansion and value creation in Domino's core business. We are concentrating on identifying the ideal CEO to oversee the careful implementation of that development approach.”

Market Difficulties

Earlier this month, Domino's, which has a substantial customer base in the UK and Ireland, said transactions fell by 1.5 percent in the latest quarter. In the summer, it cautioned that the takeaway market had “intensified” as it attributed weaker consumer confidence in the lead-up to the budget and rising wage costs for below-target performance and a 15% drop in half-year profits.

Rival chains are also facing challenges. Pizza Hut revealed the closing of dozens of outlets a month ago, after the business behind its British operations faced financial collapse.

Wellness Initiatives

Responding to market shifts towards better nutrition, Domino's has introduced reduced-calorie products, such as its Thin & Crispy range of bakes below 400 calories as well as plant-based and gluten-free options. A large pepperoni pizza has over 2,300 kcal. A large cheese and tomato pizza has 2,171 kcal, while a small has 909 calories.

Interim Management

The interim chief has been with Domino's since the recent past, and was formerly with the gaming group William Hill. It is thought that she does not want to assume the CEO position on a full-time basis.

She commented: “The company has a several ongoing development and operational projects that we will be dedicated to executing at a rapid rate.”

Frampton noted these involved ongoing development on the organization's supply chain and product development, and its customer retention initiative.

Domino's is also in need of a full-time chief financial officer until 16 March, when a new appointee starts from the beverage producer a well-known firm. For now, Snow serves as interim finance chief.

Denise Mitchell
Denise Mitchell

A digital content strategist passionate about gaming and live streaming innovations, with years of experience in community building.