Peak Pizza? Domino's Pizza CEO Departs Following Shift Into Fried Chicken.

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

Executive Transition

The former CEO is exiting after a brief tenure in leadership, and will be succeeded on an temporary basis by the company's operations head, Nicola Frampton, while Domino's looks for a new leader.

Rennie, who served at Domino's for more than two decades, had aimed to redirect Britain's leading pizza food delivery firm towards fried chicken, commenting recently there was not “massive growth” left in the pizza sector in the UK. He noted chicken was the most rapidly expanding food category in the world.

Governance Disagreements

It is understood that there was tension between Rennie and the board over his approach and business vision, although the company's release said he was departing “through mutual consent”.

Recent Brand Launch

In the autumn, Domino's unveiled its poultry product line – which the former chief referred to as a “significant new phase” for the group – and is trialling it in 210 outlets in the north-west of England and Northern Ireland.

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 an addition to its main pizza offerings.

Leadership Statement

Ian Bull, the company chairman, commented: “The board believes that there are a series of prospects to boost expansion and performance improvement in Domino's core business. We are concentrating on finding the right chief executive to direct the careful implementation of that development approach.”

Market Difficulties

In the latest update, the pizza delivery giant, which has 13 million customers in the UK and Ireland, said sales declined by 1.5% in the third quarter. In August, it warned that the quick-service industry had “intensified” as it blamed weaker consumer confidence in the run-up to the government announcement and increasing labor expenses for weaker-than-expected sales and a 15% drop in half-year profits.

Other pizza operators are also experiencing difficulties. Another major chain disclosed the closing of multiple locations a last month, after the firm behind its outlets fell into administration.

Health Initiatives

Responding to customer preferences towards healthier eating, Domino's has rolled out reduced-calorie products, such as its thin-crust selection of pizzas below 400 calories as well as vegan and wheat-free pizzas. A big pepperoni bake has 2,311 kcals. A family cheese pizza has over 2,100, while a small has 909 calories.

Interim Management

Nicola Frampton has been with the company since the recent past, and was formerly with the gambling company William Hill. It is thought that she prefers not to assume the top job permanently.

She said: “Our team has a multiple current growth and efficiency programs that we will be focused on carrying out at speed.”

She added these involved ongoing development on the company's procurement system and new item creation, and its rewards program.

Domino's is also lacking a full-time CFO until March 16, when Andrea joins from the drinks company a well-known firm. Until then, Richard Snow is acting financial officer.

Eric Vazquez
Eric Vazquez

Elara is a passionate writer and tech enthusiast with over a decade of experience in digital content creation and storytelling.