Peak Pizza? Domino's Leader Exits After Pivot Towards Fried Chicken.
A boss of Domino's Pizza Group who suggested the UK might have hit maximum pizza demand while diversifying the company into chicken products has been ousted after conflicts with its governing body.
Executive Transition
Rennie is leaving after a brief tenure in charge, and will be replaced on an interim basis by the organization's operations head, Nicola Frampton, while the pizza giant looks for a long-term chief.
Rennie, who served at the company for more than two decades, had sought to shift the UK's leading pizza takeaway chain towards chicken offerings, stating in a recent interview there was not “huge potential” left in the UK's pizza market. He observed poultry was the quickest rising food category in the globe.
Governance Tensions
It is understood that there was disagreement between Rennie and the directors over his focus and business vision, although Domino's official statement said he was stepping down “as a joint decision”.
New Product Launch
In September, Domino's unveiled its chicken-focused offering – which Rennie referred to as a “bold new chapter” for the group – and is testing it in select stores in the north-west of England and Northern Ireland.
While the business is still intending to launch it across its almost 1,400 stores in the coming year as intended, it considers chicken products as a supplement for its main pizza offerings.
Leadership Statement
Ian Bull, the company chairman, said: “Directors think that there are a range of possibilities to drive further growth and profitability in the main pizza segment. We are concentrating on selecting the ideal CEO to direct the careful implementation of that expansion plan.”
Market Challenges
In the latest update, the pizza delivery giant, which has millions of users in the British Isles, said orders dipped by 1.5% in the Q3. In August, it cautioned that the quick-service industry had “grown more challenging” as it blamed weaker consumer confidence in the period before the government announcement and increasing labor expenses for disappointing revenue and a significant fall in half-year profits.
Competitors are also facing challenges. Another major chain revealed the closing of multiple locations a last month, after the firm behind its British operations fell into administration.
Health Initiatives
Trying to keep up with consumer trends towards healthier eating, the company has rolled out lower-calorie products, such as its light base selection of pizzas below 400 kcal as well as vegan and gluten-free pizzas. A family-sized pepperoni has over 2,300 kcal. A big margherita has 2,171, while a personal has 909 kcal.
Interim Management
Nicola Frampton has been with Domino's since 2021, and was formerly with the gaming group a well-known operator. It is understood that she is not seeking to take on the top job permanently.
She commented: “We have a number of ongoing expansion and efficiency programs that we will be dedicated to implementing at pace.”
She said these comprised additional efforts 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 March 16, when Andrea joins from the drinks company a well-known firm. In the meantime, Snow is acting financial officer.