Has Pizza Peaked? Domino's Chief Executive Departs Following Shift Towards Chicken.

The chief executive of Domino's Pizza Group who proposed the UK might have hit peak pizza while broadening the chain into chicken products has been replaced after conflicts with its board.

Leadership Shake-Up

Andrew Rennie is departing after only 24 months in leadership, and will be replaced on an acting basis by the organization's operations head, Nicola Frampton, while the pizza giant searches for a permanent CEO.

Rennie, who worked for Domino's for over 20 years, had sought to redirect Britain's leading pizza food delivery firm towards chicken offerings, remarking in a recent interview there was not “huge potential” left in the UK's pizza market. He noted chicken was the most rapidly expanding menu item in the international market.

Governance Tensions

Reports indicate that there was disagreement between Rennie and the directors over his focus and management style, although Domino's announcement said he was departing “through mutual consent”.

Recent Brand Launch

In the autumn, Domino's unveiled its poultry brand – which the former chief called a “bold new chapter” for the group – and is piloting it in 210 outlets in the North West region and Northern Ireland.

While the company is still going to roll it out across its extensive network in the coming year as scheduled, it regards fried chicken as complementary to its primary pizza operations.

Leadership Comment

Ian Bull, the Domino's chair, said: “We are confident that there are a range of possibilities to boost expansion and profitability in our primary operations. We are focused on finding the suitable leader to direct the systematic rollout of that expansion plan.”

Industry Challenges

Earlier this month, the pizza delivery giant, which has 13 million customers in the British Isles, said orders declined by 1.5 percent in the latest quarter. In August, it alerted that the quick-service industry had “grown more challenging” as it attributed economic uncertainty in the run-up to the government announcement and rising wage costs for below-target performance and a 15% drop in six-month income.

Competitors are also facing challenges. Another major chain announced the closure of 68 restaurants a recently, after the business behind its British operations entered insolvency.

Wellness Initiatives

Adapting to consumer trends towards healthier eating, Domino's has introduced lower-calorie products, such as its light base range of bakes below 400 calories as well as vegan and gluten-free options. A family-sized pepperoni has 2,311 calories. A large cheese and tomato pizza has over 2,100, while a individual has under 1,000 calories.

Interim Leadership

Frampton has been with Domino's since the recent past, and previously worked for the gaming group William Hill. It is understood that she is not seeking to take on the chief executive role on a full-time basis.

She said: “We have a number of ongoing expansion and performance initiatives that we will be dedicated to executing at pace.”

She added these comprised further work on the organization's logistics network and new item creation, and its customer retention initiative.

Domino's is also without a long-term chief financial officer until 16 March, when Andrea starts from the beverage producer C&C Group. For now, Richard Snow serves as acting financial officer.

Jennifer Barker
Jennifer Barker

Elara is a passionate writer and naturalist who crafts evocative tales inspired by the wilderness and human experiences.