Peak Pizza? Domino's Pizza CEO Departs After Pivot Into Chicken.

A boss of Domino's Pizza Group who suggested the United Kingdom might have hit maximum pizza demand while expanding the chain into fried chicken has been removed after disagreements with its directors.

Executive Change

Andrew Rennie is departing after a brief tenure in leadership, and will be succeeded on an interim basis by the company's chief operating officer, Frampton, while Domino's looks for a new leader.

Rennie, who was with Domino's for over 20 years, had aimed to redirect Britain's biggest pizza food delivery firm towards fried chicken, commenting recently there was not “massive growth” left in the UK's pizza market. He said poultry was the fastest-growing menu item in the international market.

Board Tensions

It is understood that there was disagreement between the CEO and the directors over his approach and management style, although the company's official statement said he was stepping down “by mutual agreement”.

New Product Introduction

In September, Domino's introduced its Chick 'N' Dip brand – which the former chief called a “significant new phase” for the group – and is testing it in select stores in the North West region and the province.

While the business is still going to roll it out across its extensive network next year as scheduled, it regards chicken products as an addition to its main pizza offerings.

Board Comment

Ian Bull, the company chair, stated: “We are confident that there are a number of opportunities to enhance value and value creation in our primary operations. We are focused on finding the ideal CEO to direct the careful implementation of that development approach.”

Market Difficulties

In the latest update, Domino's, which has 13 million customers in the UK and Ireland, said orders declined by 1.5 percent in the third quarter. In August, it alerted that the food delivery sector had “intensified” as it attributed economic uncertainty in the run-up to the budget and rising wage costs for below-target performance and a 15% drop in half-year profits.

Other pizza operators are also facing challenges. Another major chain announced the shutting of multiple locations a last month, after the business behind its outlets faced financial collapse.

Wellness Efforts

Responding to consumer trends towards healthier eating, Domino's has rolled out light products, such as its light base line of pizzas below 400 calories as well as meat-free and gluten-free options. A family-sized pepperoni has over 2,300 kcal. A big margherita has 2,171 kcal, while a small has 909 calories.

Acting Management

Frampton has been with Domino's since the recent past, and previously worked for the betting firm a well-known operator. It is believed that she does not want to assume the CEO position permanently.

She commented: “The company has a multiple ongoing growth and efficiency programs that we will be dedicated to implementing at a rapid rate.”

She said these comprised ongoing development on the company's supply chain and menu innovation, and its customer retention initiative.

Domino's is also lacking a long-term CFO until 16 March, when Andy Andrea comes aboard from the drinks company C&C Group. In the meantime, Snow acts as acting financial officer.

Lauren Benton
Lauren Benton

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