Has Pizza Peaked? Domino's Leader Exits After Pivot Into Fried Chicken.
A head of the UK's Domino's Pizza chain who indicated the UK might have hit maximum pizza demand while diversifying the franchise into poultry items has been replaced after conflicts with its directors.
Executive Shake-Up
The former CEO is leaving after only 24 months in the top role, and will be succeeded on an acting basis by the organization's chief operating officer, Frampton, while Domino's seeks a permanent CEO.
The outgoing executive, who worked for the company for a substantial period, had sought to shift the UK's largest pizza delivery company towards chicken offerings, commenting earlier this month there was not “massive growth” left in the pizza sector in the UK. He said chicken was the most rapidly expanding protein in the international market.
Board Friction
It is understood that there was tension between Rennie and the governance team over his approach and direction, although the company's release said he was leaving “by mutual agreement”.
Recent Product Launch
In September, the chain launched its poultry offering – which Rennie referred to as a “significant new phase” for the company – and is trialling it in over 200 locations in the north-west of England and Northern Ireland.
While the firm is still planning to expand it across its nearly 1,400 branches in 2026 as scheduled, it considers chicken products as an addition to its primary pizza operations.
Leadership Comment
Bull, the Domino's chair, said: “Directors think that there are a number of opportunities to drive further growth and value creation in Domino's core business. We are prioritizing selecting the suitable leader to lead the disciplined execution of that expansion plan.”
Industry Difficulties
In the latest update, the pizza delivery giant, which has 13 million customers in the British Isles, said orders dipped by 1.5% in the latest quarter. In August, it alerted that the takeaway market had “become tougher” as it blamed reduced spending in the lead-up to the government announcement and rising wage costs for weaker-than-expected sales and a significant fall in half-year profits.
Rival chains are also facing challenges. Another major chain revealed the closure of dozens of outlets a recently, after the firm behind its outlets faced financial collapse.
Wellness Initiatives
Responding to consumer trends towards better nutrition, Domino's has launched lower-calorie items, such as its light base selection of bakes below 400 calories as well as plant-based and allergy-friendly pizzas. A family-sized pepperoni has 2,311 kcals. A large cheese and tomato pizza has 2,171 kcal, while a individual has under 1,000 calories.
Acting Management
The interim chief has been with Domino's since the recent past, and was formerly with the gaming group William Hill. It is believed that she prefers not to take on the chief executive role long-term.
Frampton stated: “The company has a number of ongoing growth and operational projects that we will be concentrating on implementing at pace.”
She added these included additional efforts on the company's supply chain and product development, and its loyalty scheme.
The pizza chain is also lacking a permanent CFO until March 16, when a new appointee comes aboard from the beverage producer a well-known firm. Until then, Snow serves as acting financial officer.