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

The head of Domino's Pizza Group who indicated the United Kingdom might have hit pizza saturation while expanding the chain into chicken products has been replaced after disagreements with its board.

Executive Shake-Up

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

The outgoing executive, who served at Domino's for more than two decades, had sought to shift Britain's leading pizza delivery company towards fried chicken, remarking earlier this month there was not “massive growth” left in the UK's pizza market. He said chicken was the most rapidly expanding menu item in the international market.

Governance Tensions

It is understood that there was disagreement between Rennie and the board over his strategy and business vision, although the company's release said he was departing “through mutual consent”.

Recent Brand Launch

In September, Domino's unveiled its poultry offering – which the former chief called a “significant new phase” for the group – 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 extensive network in the coming year as planned, it regards chicken products as complementary to its primary pizza operations.

Board Statement

Ian Bull, the company chair, said: “We are confident that there are a series of prospects to drive further growth and profitability in the main pizza segment. We are concentrating on identifying the ideal CEO to lead the careful implementation of that development approach.”

Market Difficulties

In the latest update, the pizza delivery giant, which has millions of users in the British Isles, said sales declined by 1.5% in the Q3. In the summer, it alerted that the quick-service industry had “become tougher” as it blamed weaker consumer confidence in the lead-up to the government announcement and rising wage costs for weaker-than-expected sales and a significant fall in interim earnings.

Rival chains are also struggling. Pizza Hut revealed the shutting of dozens of outlets a month ago, after the company behind its British operations faced financial collapse.

Health Efforts

Trying to keep up with consumer trends towards better nutrition, Domino's has rolled out light products, such as its Thin & Crispy selection of bakes below 400 kcals as well as meat-free and gluten-free pizzas. A large pepperoni pizza has 2,311 calories. A large cheese and tomato pizza has 2,171 kcal, while a individual has 909 calories.

Interim Leadership

Nicola Frampton has been with the company since the recent past, and had a background at the betting firm a well-known operator. It is thought that she does not want to assume the CEO position permanently.

Frampton stated: “We have a multiple ongoing growth and operational projects that we will be concentrating on executing at a rapid rate.”

She added these involved further work on the organization's logistics network and product development, and its loyalty scheme.

Domino's is also lacking a full-time CFO until the spring, when Andy Andrea joins from the beverage producer a well-known firm. In the meantime, Snow acts as interim finance chief.

Christina Clark
Christina Clark

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