Has Pizza Peaked? Domino's Leader Departs After Move Towards Chicken.

The head of Domino's Pizza Group who indicated the United Kingdom might have reached maximum pizza demand while broadening the chain into chicken products has been ousted after disagreements with its board.

Leadership Shake-Up

Andrew Rennie is departing after only 24 months in leadership, and will be replaced on an acting basis by the company's operations head, Frampton, while Domino's looks for a permanent CEO.

The outgoing executive, who was with Domino's for a substantial period, had aimed to redirect the UK's largest pizza delivery company towards fried chicken, stating recently there was not “massive growth” left in the UK's pizza market. He said poultry was the fastest-growing menu item in the international market.

Board Disagreements

It is understood that there was tension between Rennie and the board over his approach and management style, although the company's announcement said he was leaving “through mutual consent”.

New Brand Launch

In September, Domino's introduced its chicken-focused offering – which Rennie described as a “significant new phase” for the group – and is trialling it in select stores in the north-west of England and the province.

While the business is still planning to expand it across its nearly 1,400 branches in the coming year as planned, it regards chicken products as a supplement for its core pizza business.

Leadership Comment

Bull, the Domino's chairman, said: “We are confident that there are a series of prospects to boost expansion and profitability in Domino's core business. We are focused on identifying the suitable leader to direct the systematic rollout of that expansion plan.”

Market Difficulties

Earlier this month, the pizza delivery giant, which has millions of users in the British Isles, said transactions dipped by 1.5% in the Q3. In the summer, it cautioned that the quick-service industry had “become tougher” as it blamed reduced spending in the lead-up to the government announcement and increasing labor expenses for below-target performance and a 15% drop in half-year profits.

Rival chains are also struggling. Another major chain announced the shutting of 68 restaurants a last month, after the business behind its outlets fell into administration.

Wellness Initiatives

Responding to customer preferences towards better nutrition, the company has introduced reduced-calorie options, such as its Thin & Crispy selection of pizzas below 400 kcal as well as vegan and gluten-free pizzas. A large pepperoni pizza has over 2,300 kcal. A large cheese and tomato pizza has 2,171, while a individual has under 1,000 calories.

Acting Leadership

Frampton has been with Domino's since the recent past, and was formerly with the gaming group William Hill. It is understood that she is not seeking to occupy the top job long-term.

She commented: “We have a several active growth and performance initiatives that we will be dedicated to implementing at speed.”

She said these involved ongoing development on the organization's logistics network and product development, and its customer retention initiative.

Domino's is also in need of a long-term finance director until 16 March, when Andrea joins from the beverage producer a well-known firm. In the meantime, Snow acts as acting financial officer.

Brittany Smith
Brittany Smith

Lena is a digital strategist passionate about emerging technologies and their impact on business growth.