Has Pizza Peaked? Domino's CEO Departs Following Move Towards Chicken.

A boss of Domino's Pizza Group who proposed the United Kingdom might have hit peak pizza while broadening the franchise into poultry items has been ousted after disagreements with its governing body.

Leadership Shake-Up

Andrew Rennie is departing after only 24 months in the top role, and will be replaced on an temporary basis by the organization's chief operating officer, Nicola Frampton, while the pizza giant searches for a permanent CEO.

Rennie, who worked for the company for more than two decades, had aimed to shift Britain's biggest pizza delivery company towards chicken offerings, commenting in a recent interview there was not “huge potential” left in the UK's pizza market. He observed chicken was the fastest-growing protein in the international market.

Governance Tensions

Sources suggest that there was disagreement between Rennie and the directors over his approach and management style, although the company's release said he was stepping down “by mutual agreement”.

New Product Introduction

In September, the chain launched its poultry offering – which Rennie referred to as a “significant new phase” for the organization – and is testing it in select stores in the north-west of England and Northern Ireland.

While the company is still intending to launch it across its nearly 1,400 branches in the coming year as scheduled, it regards chicken products as a supplement for its main pizza offerings.

Board Statement

The Domino's chair, the company chairman, commented: “The board believes that there are a series of prospects to drive further growth and performance improvement in Domino's core business. We are focused on finding the suitable leader to direct the disciplined execution of that growth strategy.”

Industry Challenges

Recently, Domino's, which has 13 million customers in the UK and Ireland, said sales dipped by 1.5 percent in the Q3. In August, it alerted that the food delivery sector had “grown more challenging” as it attributed reduced spending in the run-up to the government announcement and rising wage costs for below-target performance and a 15% drop in six-month income.

Other pizza operators are also experiencing difficulties. Another major chain revealed the closure of dozens of outlets a last month, after the company behind its British operations faced financial collapse.

Wellness Initiatives

Adapting to customer preferences towards better nutrition, the company has launched reduced-calorie options, such as its Thin & Crispy selection of bakes below 400 kcals as well as vegan and gluten-free options. A big pepperoni bake has 2,311 calories. A family cheese pizza has 2,171, while a small has 909 calories.

Acting Management

Frampton has been with the company since the recent past, and previously worked for the gambling company a well-known operator. It is believed that she does not want to assume the CEO position long-term.

She commented: “The company has a several current expansion and operational projects that we will be dedicated to executing at pace.”

She added these comprised further work on the company's logistics network and menu innovation, and its rewards program.

Domino's is also in need of a full-time chief financial officer until 16 March, when a new appointee comes aboard from the beverage producer C&C Group. Until then, Richard Snow acts as temporary CFO.

Karen Salas
Karen Salas

A passionate esports journalist with over a decade of experience covering competitive gaming and player stories.