Peak Pizza? Domino's CEO Steps Down After Shift Towards Chicken.
The boss of Domino's Pizza Group who indicated the UK might have reached pizza saturation while diversifying the chain into poultry items has been ousted after tensions with its board.
Leadership Change
Rennie is exiting after a brief tenure in leadership, and will be succeeded on an interim basis by the organization's operations head, Nicola Frampton, while the pizza giant searches for a long-term chief.
The outgoing executive, who was with Domino's for over 20 years, had sought to pivot Britain's biggest pizza food delivery firm towards chicken offerings, commenting earlier this month there was not “significant expansion” left in the pizza sector in the UK. He noted poultry was the most rapidly expanding food category in the globe.
Governance Friction
It is understood that there was tension between Rennie and the directors over his approach and business vision, although the company's release said he was stepping down “as a joint decision”.
Recent Product Introduction
In the autumn, the chain unveiled its chicken-focused product line – which Rennie described as a “major strategic shift” for the group – and is trialling it in select stores in the north-west of England and the province.
While the company is still going to roll it out across its extensive network next year as planned, it views chicken products as an addition to its primary pizza operations.
Board Statement
The Domino's chair, the Domino's chairman, said: “Directors think that there are a range of possibilities to boost expansion and value creation in the main pizza segment. We are focused on identifying the ideal CEO to direct the disciplined execution of that growth strategy.”
Market Difficulties
Recently, Domino's, which has a substantial customer base in the UK and Ireland, said orders declined by 1.5 percent in the latest quarter. In the summer, it warned that the food delivery sector had “intensified” as it attributed reduced spending in the run-up to the government announcement and rising wage costs for below-target performance and a 15 percent decline in six-month income.
Competitors are also struggling. Another major chain announced the closure of 68 restaurants a last month, after the business behind its British operations entered insolvency.
Health Initiatives
Responding to consumer trends towards better nutrition, Domino's has introduced light products, such as its Thin & Crispy selection of pizzas below 400 kcal as well as vegan and wheat-free pizzas. A big pepperoni bake has over 2,300 kcal. A large cheese and tomato pizza has 2,171 kcal, while a personal has 909 kcal.
Acting Leadership
Nicola Frampton has been with the company since 2021, and was formerly with the gaming group William Hill. It is believed that she prefers not to take on the CEO position permanently.
She said: “The company has a number of current development and efficiency programs that we will be concentrating on carrying out at speed.”
She said these included ongoing development on the organization's supply chain and menu innovation, and its rewards program.
The pizza chain is also without a full-time chief financial officer until 16 March, when Andy Andrea comes aboard from the beverage producer a well-known firm. Until then, Richard Snow serves as interim finance chief.