Peak Pizza? Domino's CEO Departs After Move Towards Chicken.
The boss of Domino's Pizza Group who suggested the United Kingdom might have reached pizza saturation while diversifying the franchise into poultry items has been ousted after disagreements with its board.
Executive Shake-Up
Andrew Rennie is exiting after a brief tenure in charge, and will be replaced on an temporary basis by the organization's chief operating officer, Nicola Frampton, while the pizza giant seeks a long-term chief.
The outgoing executive, who worked for the company for a substantial period, had sought to pivot the UK's largest pizza delivery company towards chicken offerings, commenting earlier this month there was not “huge potential” left in the UK's pizza market. He noted poultry was the fastest-growing food category in the international market.
Governance Friction
It is understood that there was disagreement between the CEO and the governance team over his strategy and business vision, although the company's official statement said he was leaving “by mutual agreement”.
Recent Brand Introduction
In the autumn, the chain unveiled its chicken-focused offering – which Rennie called a “major strategic shift” for the company – and is piloting it in select stores in the north-west of England and Northern Ireland.
While the company is still planning to expand it across its nearly 1,400 branches next year as intended, it considers fried chicken as a supplement for its main pizza offerings.
Leadership Comment
The Domino's chair, the company chair, commented: “We are confident that there are a number of opportunities to boost expansion and performance improvement in our primary operations. We are focused on selecting the suitable leader to direct the systematic rollout of that growth strategy.”
Market Challenges
Earlier this month, Domino's, which has 13 million customers in the British Isles, said sales dipped by 1.5 percent in the third quarter. In August, it alerted that the quick-service industry had “grown more challenging” as it blamed reduced spending in the run-up to the budget and rising wage costs for weaker-than-expected sales and a significant fall in half-year profits.
Other pizza operators are also struggling. Pizza Hut disclosed the closing of dozens of outlets a last month, after the business behind its UK venues faced financial collapse.
Health Initiatives
Trying to keep up with market shifts towards healthier eating, the company has introduced light products, such as its light base line of pizzas below 400 kcal as well as plant-based and wheat-free options. A large pepperoni pizza has over 2,300 kcal. A family cheese pizza has over 2,100, while a small has 909 calories.
Acting Leadership
Nicola Frampton has been with the company since 2021, and was formerly with the betting firm a well-known operator. It is understood that she is not seeking to occupy the CEO position long-term.
Frampton stated: “We have a several ongoing development and efficiency programs that we will be focused on executing at a rapid rate.”
Frampton noted these included further work on the organization's supply chain and menu innovation, and its customer retention initiative.
Domino's is also without a full-time chief financial officer until March 16, when Andy Andrea joins from the Irish cider and beer maker C&C Group. For now, Snow acts as interim finance chief.