Peak Pizza? Domino's Pizza Chief Executive Departs Following Shift Towards Chicken.

The chief executive of the UK's Domino's Pizza chain who suggested the UK might have hit maximum pizza demand while expanding the franchise into fried chicken has been removed after disagreements with its directors.

Leadership Transition

The former CEO is departing after just two years in the top role, and will be replaced on an acting basis by the company's chief operating officer, Nicola Frampton, while the pizza giant seeks a long-term chief.

The outgoing executive, who was with Domino's for more than two decades, had sought to shift the UK's biggest pizza takeaway chain towards poultry-based products, commenting in a recent interview there was not “massive growth” left in the UK's pizza market. He noted poultry was the fastest-growing menu item in the world.

Board Disagreements

Reports indicate that there was tension between Rennie and the governance team over his strategy and direction, although Domino's announcement said he was leaving “as a joint decision”.

Recent Brand Launch

In September, the chain launched its chicken-focused offering – which Rennie called a “bold new chapter” for the organization – and is testing it in select stores in the north-west of England and Northern Ireland.

While the company is still intending to launch it across its almost 1,400 stores next year as planned, it views chicken products as an addition to its main pizza offerings.

Board Comment

Ian Bull, the company chairman, stated: “We are confident that there are a series of prospects to boost expansion and value creation in Domino's core business. We are prioritizing selecting the right chief executive to oversee the disciplined execution of that development approach.”

Industry Difficulties

Earlier this month, Domino's, which has 13 million customers in the UK and Ireland, said transactions fell by 1.5 percent in the latest quarter. In the summer, it warned that the takeaway market had “grown more challenging” as it attributed reduced spending in the run-up to the government announcement and rising wage costs for disappointing revenue and a significant fall in half-year profits.

Competitors are also struggling. Another major chain revealed the shutting of 68 restaurants a month ago, after the company behind its outlets faced financial collapse.

Wellness Initiatives

Responding to consumer trends towards better nutrition, Domino's has introduced reduced-calorie products, such as its thin-crust line of pizzas below 400 kcals as well as vegan and wheat-free options. A family-sized pepperoni has over 2,300 kcal. A family cheese pizza has 2,171, while a small has 909 kcal.

Interim Management

Nicola Frampton has been with the company since 2021, and previously worked for the gambling company William Hill. It is believed that she prefers not to occupy the CEO position on a full-time basis.

She said: “The company has a several current expansion and operational projects that we will be focused on implementing at a rapid rate.”

She said these included additional efforts on the company's procurement system and product development, and its customer retention initiative.

Domino's is also in need of a full-time chief financial officer until 16 March, when Andrea joins from the Irish cider and beer maker a well-known firm. For now, Richard Snow is temporary CFO.

Tricia Bass
Tricia Bass

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