Peak Pizza? Domino's Chief Executive Steps Down After Shift Into Chicken.
The boss of Domino's Pizza Group who indicated the UK might have reached peak pizza while broadening the chain into chicken products has been ousted after disagreements with its board.
Leadership Shake-Up
Andrew Rennie is leaving after just two years in the top role, and will be succeeded on an interim basis by the organization's chief operating officer, Nicola Frampton, while the pizza giant seeks a long-term chief.
The outgoing executive, who was with Domino's for over 20 years, had aimed to shift Britain's leading pizza food delivery firm towards poultry-based products, remarking in a recent interview there was not “significant expansion” left in the UK's pizza market. He noted poultry was the most rapidly expanding protein in the world.
Board Tensions
Sources suggest that there was friction between the CEO and the directors over his approach and business vision, although Domino's official statement said he was stepping down “through mutual consent”.
Recent Product Introduction
In the autumn, Domino's launched its poultry product line – which Rennie described as a “major strategic shift” for the organization – and is piloting it in 210 outlets in the north-west of England and Northern Ireland.
While the company is still intending to launch it across its almost 1,400 stores in the coming year as scheduled, it considers chicken products as an addition to its main pizza offerings.
Board Comment
The Domino's chair, the company chair, stated: “The board believes that there are a number of opportunities to enhance value and performance improvement in our primary operations. We are prioritizing finding the suitable leader to direct the disciplined execution of that expansion plan.”
Industry Difficulties
Earlier this month, Domino's, which has a substantial customer base in the British Isles, said orders fell by 1.5 percent in the Q3. In August, it warned that the food delivery sector had “become tougher” as it blamed reduced spending in the lead-up to the budget and increasing labor expenses for weaker-than-expected sales and a 15% drop in half-year profits.
Competitors are also struggling. Another major chain announced the closure of 68 restaurants a last month, after the business behind its outlets fell into administration.
Wellness Efforts
Responding to customer preferences towards healthier eating, the company has launched reduced-calorie items, such as its light base selection of bakes below 400 calories as well as vegan and gluten-free options. A big pepperoni bake has 2,311 kcals. A large cheese and tomato pizza has 2,171, while a individual has 909 calories.
Interim Leadership
The interim chief has been with Domino's since 2021, and had a background at the betting firm a well-known operator. It is understood that she prefers not to assume the CEO position permanently.
She said: “Our team has a multiple current expansion and performance initiatives that we will be concentrating on implementing at a rapid rate.”
Frampton noted these involved further work on the organization's logistics network and new item creation, and its loyalty scheme.
The pizza chain is also lacking a long-term finance director until 16 March, when Andy Andrea joins from the drinks company a well-known firm. In the meantime, Richard Snow is temporary CFO.
