Has Pizza Peaked? Domino's Pizza CEO Steps Down After Move Towards Fried Chicken.

The head of the UK's Domino's Pizza chain who suggested the UK might have hit maximum pizza demand while expanding the chain into poultry items has been removed after conflicts with its directors.

Leadership Transition

Andrew Rennie is departing after only 24 months in leadership, and will be replaced on an interim basis by the organization's chief operating officer, Nicola Frampton, while Domino's seeks a new leader.

The outgoing executive, who worked for Domino's for more than two decades, had aimed to redirect Britain's leading pizza delivery company towards poultry-based products, remarking recently there was not “massive growth” left in the UK's pizza market. He noted poultry was the quickest rising protein in the international market.

Governance Friction

It is understood that there was disagreement between Rennie and the governance team over his strategy and direction, although the company's announcement said he was stepping down “through mutual consent”.

New Brand Introduction

In the autumn, Domino's launched its chicken-focused brand – which Rennie called a “bold new chapter” for the group – and is piloting it in over 200 locations in the North West region and the province.

While the firm is still intending to launch it across its extensive network in the coming year as planned, it views chicken products as complementary to its main pizza offerings.

Leadership Statement

The Domino's chair, the company chair, said: “The board believes that there are a range of possibilities to enhance value and value creation in Domino's core business. We are concentrating on finding the suitable leader to lead the systematic rollout of that development approach.”

Industry Difficulties

In the latest update, Domino's, which has 13 million customers in the British Isles, said orders dipped by 1.5 percent in the latest quarter. In the summer, it cautioned that the quick-service industry had “grown more challenging” as it blamed weaker consumer confidence in the period before the government announcement and rising wage costs for below-target performance and a 15 percent decline in interim earnings.

Other pizza operators are also facing challenges. Another major chain disclosed the closure of dozens of outlets a month ago, after the company behind its UK venues fell into administration.

Health Efforts

Responding to consumer trends towards healthier eating, Domino's has introduced reduced-calorie items, such as its light base range of pizzas below 400 calories as well as meat-free and wheat-free options. A big pepperoni bake has 2,311 calories. A family cheese pizza has 2,171 kcal, while a personal has 909 kcal.

Acting Management

Frampton has been with the company since 2021, and had a background at the betting firm William Hill. It is thought that she does not want to assume the chief executive role long-term.

She said: “The company has a number of ongoing expansion and operational projects that we will be focused on implementing at pace.”

Frampton noted these included further work on the organization's logistics network and product development, and its customer retention initiative.

Domino's is also in need of a permanent chief financial officer until 16 March, when Andy Andrea starts from the beverage producer a well-known firm. Until then, Richard Snow acts as interim finance chief.

Jerome Baldwin
Jerome Baldwin

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