Has Pizza Peaked? Domino's Pizza Chief Executive Exits After Shift Towards Fried Chicken.

A head of the UK's Domino's Pizza chain who suggested the UK might have hit maximum pizza demand while expanding the company into chicken products has been ousted after conflicts with its directors.

Executive Change

Andrew Rennie is exiting after just two years in charge, and will be succeeded on an interim basis by the organization's operations head, Frampton, while the pizza giant seeks a long-term chief.

Rennie, who served at Domino's for a substantial period, had sought to shift Britain's largest pizza food delivery firm towards chicken offerings, stating recently there was not “significant expansion” left in the UK's pizza market. He observed poultry was the fastest-growing menu item in the international market.

Governance Disagreements

It is understood that there was tension between the CEO and the directors over his strategy and direction, although Domino's release said he was stepping down “through mutual consent”.

New Product Introduction

In the autumn, the chain launched its poultry product line – which the former chief called a “major strategic shift” for the company – and is trialling it in select stores in the north-west of England and Northern Ireland.

While the firm is still intending to launch it across its nearly 1,400 branches in the coming year as scheduled, it regards fried chicken as complementary to its primary pizza operations.

Board Statement

Ian Bull, the Domino's chairman, said: “We are confident that there are a range of possibilities to boost expansion and profitability in the main pizza segment. We are focused on selecting the right chief executive to direct the careful implementation of that development approach.”

Market Difficulties

Recently, the pizza delivery giant, which has a substantial customer base in the UK and Ireland, said sales dipped by 1.5% in the Q3. In August, it alerted that the takeaway market had “become tougher” as it attributed economic uncertainty in the lead-up to the budget and increasing labor expenses for disappointing revenue and a 15 percent decline in six-month income.

Competitors are also struggling. Pizza Hut disclosed the shutting of 68 restaurants a last month, after the company behind its outlets entered insolvency.

Wellness Initiatives

Adapting to customer preferences towards better nutrition, the company has launched light items, such as its Thin & Crispy range of pizzas below 400 kcals as well as meat-free and wheat-free pizzas. A family-sized pepperoni has 2,311 calories. A large cheese and tomato pizza has 2,171 kcal, while a individual has 909 kcal.

Interim Management

The interim chief has been with the company since the recent past, and was formerly with the betting firm a well-known operator. It is understood that she is not seeking to assume the CEO position permanently.

She said: “We have a several ongoing expansion and operational projects that we will be concentrating on implementing at a rapid rate.”

She said these involved ongoing development on the company's procurement system and menu innovation, and its rewards program.

Domino's is also in need of a long-term CFO until the spring, when Andrea starts from the Irish cider and beer maker C&C Group. Until then, Snow acts as temporary CFO.

Kimberly Barrera
Kimberly Barrera

Tech enthusiast and writer with a passion for exploring emerging technologies and their impact on society.