Peak Pizza? Domino's Pizza CEO Exits After Move Into Fried Chicken.

The chief executive of the UK's Domino's Pizza chain who proposed the UK might have reached pizza saturation while diversifying the company into fried chicken has been ousted after disagreements with its board.

Leadership Shake-Up

Rennie is exiting after only 24 months in charge, and will be succeeded on an acting basis by the company's chief operating officer, Frampton, while Domino's seeks a long-term chief.

Rennie, who was with Domino's for more than two decades, had sought to redirect the UK's largest pizza food delivery firm towards chicken offerings, commenting earlier this month there was not “massive growth” left in the British pizza industry. He observed chicken was the quickest rising protein in the globe.

Board Tensions

Sources suggest that there was tension between the CEO and the directors over his focus and business vision, although the company's announcement said he was departing “by mutual agreement”.

Recent Brand Launch

In the autumn, Domino's launched its Chick 'N' Dip offering – which Rennie referred to as a “significant new phase” for the company – and is testing it in over 200 locations in the North West region and Northern Ireland.

While the company is still intending to launch it across its nearly 1,400 branches in the coming year as scheduled, it regards chicken products as an addition to its main pizza offerings.

Leadership Comment

Bull, the Domino's chair, said: “The board believes that there are a series of prospects to boost expansion and value creation in Domino's core business. We are focused on finding the right chief executive to lead the systematic rollout of that growth strategy.”

Industry Difficulties

In the latest update, the pizza delivery giant, which has a substantial customer base in the British Isles, said orders dipped by one and a half percent in the latest quarter. In the summer, it cautioned that the quick-service industry had “intensified” as it blamed reduced spending in the lead-up to the government announcement and rising wage costs for disappointing revenue and a significant fall in interim earnings.

Rival chains are also struggling. Pizza Hut disclosed the shutting of multiple locations a recently, after the firm behind its outlets fell into administration.

Wellness Initiatives

Adapting to customer preferences towards balanced diets, the company has rolled out reduced-calorie items, such as its light base range of bakes below 400 calories as well as vegan and allergy-friendly options. A big pepperoni bake has 2,311 calories. A big margherita has 2,171, while a individual has 909 calories.

Interim Management

The interim chief has been with Domino's since the recent past, and had a background at the betting firm William Hill. It is thought that she prefers not to assume the chief executive role long-term.

Frampton stated: “Our team has a several active growth and performance initiatives that we will be dedicated to implementing at a rapid rate.”

Frampton noted these included further work on the organization's procurement system and menu innovation, and its rewards program.

The pizza chain is also in need of a full-time chief financial officer until the spring, when a new appointee starts from the Irish cider and beer maker a well-known firm. Until then, Richard Snow is interim finance chief.

Todd Frank
Todd Frank

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