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

A boss of Domino's Pizza Group who suggested the UK might have hit peak pizza while diversifying the company into fried chicken has been ousted after disagreements with its directors.

Executive Transition

Andrew Rennie is departing after a brief tenure in charge, and will be succeeded on an acting basis by the company's operations head, Nicola Frampton, while the pizza giant seeks a new leader.

Rennie, who worked for the company for more than two decades, had aimed to pivot Britain's largest pizza food delivery firm towards fried chicken, commenting earlier this month there was not “significant expansion” left in the UK's pizza market. He said poultry was the most rapidly expanding menu item in the world.

Governance Tensions

Reports indicate that there was tension between the CEO and the directors over his focus and business vision, although Domino's announcement said he was leaving “as a joint decision”.

New Product Launch

In September, Domino's introduced its poultry product line – which Rennie called a “bold new chapter” for the organization – and is testing it in 210 outlets in the north-west of England and the province.

While the company is still planning to expand it across its nearly 1,400 branches in the coming year as intended, it views fried chicken as an addition to its core pizza business.

Leadership Comment

Ian Bull, the company chair, stated: “Directors think that there are a number of opportunities to drive further growth and value creation in the main pizza segment. We are prioritizing selecting the suitable leader to lead the systematic rollout of that expansion plan.”

Industry Difficulties

Recently, the pizza delivery giant, which has 13 million customers in the British Isles, said orders fell by one and a half percent in the Q3. In August, it cautioned that the quick-service industry had “grown more challenging” as it attributed weaker consumer confidence in the lead-up to the government announcement and increasing labor expenses for weaker-than-expected sales and a 15 percent decline in six-month income.

Competitors are also experiencing difficulties. Pizza Hut announced the closure of dozens of outlets a recently, after the firm behind its UK venues fell into administration.

Health Efforts

Responding to customer preferences towards healthier eating, Domino's has introduced lower-calorie options, such as its thin-crust line of bakes below 400 kcals as well as vegan and allergy-friendly pizzas. A family-sized pepperoni has over 2,300 kcal. A family cheese pizza has over 2,100, while a individual has under 1,000 calories.

Acting Leadership

Frampton has been with Domino's since the recent past, and previously worked for the gambling company William Hill. It is believed that she does not want to take on the chief executive role permanently.

Frampton stated: “We have a several active growth and operational projects that we will be dedicated to executing at pace.”

She added these comprised additional efforts on the organization's supply chain and new item creation, and its rewards program.

Domino's is also lacking a full-time finance director until the spring, when Andrea starts from the Irish cider and beer maker a well-known firm. Until then, Snow serves as temporary CFO.