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

The boss of Domino's Pizza Group who proposed the UK might have reached pizza saturation while broadening the chain into fried chicken has been ousted after conflicts with its governing body.

Leadership Shake-Up

Rennie is leaving after a brief tenure in charge, and will be succeeded on an temporary basis by the company's chief operating officer, Nicola Frampton, while Domino's searches for a permanent CEO.

The outgoing executive, who worked for Domino's for over 20 years, had attempted to shift Britain's biggest pizza delivery company towards poultry-based products, commenting recently there was not “massive growth” left in the pizza sector in the UK. He noted poultry was the quickest rising protein in the world.

Governance Disagreements

It is understood that there was tension between the CEO and the directors over his focus and business vision, although the company's official statement said he was leaving “through mutual consent”.

New Product Launch

In September, Domino's introduced its poultry product line – which Rennie described as a “significant new phase” for the company – and is trialling it in 210 outlets in the North West region and Northern Ireland.

While the firm is still intending to launch it across its almost 1,400 stores next year as scheduled, it regards chicken products as a supplement for its core pizza business.

Leadership Comment

Ian Bull, the Domino's chairman, said: “Directors think that there are a number of opportunities to drive further growth and profitability in Domino's core business. We are concentrating on identifying the right chief executive to lead the systematic rollout of that development approach.”

Market Difficulties

Recently, Domino's, which has a substantial customer base in the British Isles, said sales dipped by 1.5% in the latest quarter. In August, it alerted that the takeaway market had “grown more challenging” as it blamed economic uncertainty in the run-up to the government announcement and increasing labor expenses for below-target performance and a 15 percent decline in interim earnings.

Other pizza operators are also experiencing difficulties. Pizza Hut announced the shutting of dozens of outlets a last month, after the company behind its British operations entered insolvency.

Wellness Initiatives

Trying to keep up with market shifts towards healthier eating, the company has rolled out light products, such as its Thin & Crispy selection of pizzas below 400 kcal as well as plant-based and allergy-friendly pizzas. A big pepperoni bake has over 2,300 kcal. A big margherita has 2,171, while a individual has under 1,000 calories.

Interim Management

The interim chief has been with Domino's since the recent past, and was formerly with the betting firm William Hill. It is believed that she is not seeking to assume the top job long-term.

She commented: “We have a several current growth and operational projects that we will be focused on implementing at a rapid rate.”

She added these involved further work on the organization's procurement system and new item creation, and its customer retention initiative.

The pizza chain is also lacking a full-time chief financial officer until the spring, when Andrea comes aboard from the Irish cider and beer maker C&C Group. Until then, Richard Snow acts as temporary CFO.

John Herrera
John Herrera

Elara is a historian and writer passionate about uncovering the untold stories of ancient cultures and their impact on modern society.