Has Pizza Peaked? Domino's CEO Exits After Shift Into Chicken.
A head of the UK's Domino's Pizza chain who proposed the United Kingdom might have hit pizza saturation while diversifying the chain into poultry items has been replaced after conflicts with its directors.
Leadership Shake-Up
Andrew Rennie is leaving after only 24 months in the top role, and will be replaced on an interim basis by the company's chief operating officer, Frampton, while the pizza giant looks for a new leader.
The outgoing executive, who served at the company for more than two decades, had attempted to shift Britain's biggest pizza takeaway chain towards poultry-based products, remarking in a recent interview there was not “significant expansion” left in the British pizza industry. He said poultry was the fastest-growing protein in the international market.
Governance Disagreements
It is understood that there was friction between the CEO and the board over his strategy and direction, although Domino's official statement said he was departing “through mutual consent”.
Recent Brand Introduction
In the autumn, Domino's introduced its Chick 'N' Dip product line – which the former chief described as a “significant new phase” for the company – and is piloting it in select stores in the north-west of England and Northern Ireland.
While the company is still going to roll it out across its nearly 1,400 branches next year as scheduled, it views chicken products as a supplement for its primary pizza operations.
Board Statement
Ian Bull, the Domino's chairman, stated: “The board believes that there are a series of prospects to enhance value and profitability in our primary operations. We are focused on finding the right chief executive to oversee the disciplined execution of that development approach.”
Industry Difficulties
In the latest update, Domino's, which has 13 million customers in the UK and Ireland, said sales fell by 1.5 percent in the third quarter. In August, it warned that the food delivery sector had “intensified” as it blamed economic uncertainty in the run-up to the government announcement and higher payroll outlays for below-target performance and a significant fall in half-year profits.
Rival chains are also struggling. Pizza Hut announced the shutting of multiple locations a month ago, after the firm behind its British operations entered insolvency.
Health Efforts
Trying to keep up with market shifts towards better nutrition, the company has launched reduced-calorie items, such as its light base line of pizzas below 400 kcal as well as meat-free and allergy-friendly options. A family-sized pepperoni has 2,311 kcals. A family cheese pizza has 2,171, while a individual has 909 kcal.
Acting Management
The interim chief has been with Domino's since 2021, and previously worked for the gambling company a well-known operator. It is thought that she does not want to occupy the chief executive role long-term.
Frampton stated: “Our team has a several active growth and efficiency programs that we will be concentrating on implementing at a rapid rate.”
Frampton noted these comprised additional efforts on the company's logistics network and menu innovation, and its customer retention initiative.
Domino's is also without a permanent finance director until the spring, when a new appointee comes aboard from the Irish cider and beer maker C&C Group. Until then, Richard Snow acts as acting financial officer.