Peak Pizza? Domino's Pizza CEO Departs After Pivot Towards Chicken.

The boss of the UK's Domino's Pizza chain who suggested the United Kingdom might have reached peak pizza while broadening the company into poultry items has been removed after tensions with its board.

Executive Change

Rennie is departing after just two years in the top role, and will be succeeded on an acting basis by the company's chief operating officer, Frampton, while Domino's looks for a permanent CEO.

Rennie, who served at Domino's for more than two decades, had sought to redirect the UK's largest pizza food delivery firm towards fried chicken, remarking recently there was not “significant expansion” left in the pizza sector in the UK. He said chicken was the fastest-growing protein in the international market.

Board Tensions

It is understood that there was friction between the CEO and the directors over his strategy and direction, although Domino's official statement said he was departing “through mutual consent”.

New Brand Launch

In September, the chain unveiled its chicken-focused brand – which Rennie referred to as a “major strategic shift” for the organization – and is piloting it in 210 outlets in the North West region and the province.

While the firm is still going to roll it out across its extensive network next year as intended, it views chicken products as complementary to its main pizza offerings.

Leadership Statement

Bull, the Domino's chairman, stated: “Directors think that there are a range of possibilities to drive further growth and value creation in the main pizza segment. We are prioritizing identifying the ideal CEO to direct the systematic rollout of that expansion plan.”

Industry Difficulties

In the latest update, Domino's, which has 13 million customers in the UK and Ireland, said sales dipped by 1.5% in the latest quarter. In the summer, it alerted that the quick-service industry had “grown more challenging” as it blamed reduced spending in the period before the budget and higher payroll outlays for below-target performance and a 15% drop in half-year profits.

Other pizza operators are also facing challenges. Another major chain revealed the closure of dozens of outlets a recently, after the firm behind its British operations fell into administration.

Health Initiatives

Responding to customer preferences towards healthier eating, the company has launched light products, such as its Thin & Crispy selection of pizzas below 400 kcal as well as plant-based and allergy-friendly pizzas. A family-sized pepperoni has over 2,300 kcal. A family cheese pizza has 2,171, while a small has under 1,000 calories.

Acting Management

Nicola Frampton has been with the company since 2021, and was formerly with the gaming group William Hill. It is thought that she is not seeking to assume the chief executive role permanently.

She commented: “Our team has a number of ongoing growth and operational projects that we will be focused on executing at a rapid rate.”

She added these included further work on the company's supply chain and new item creation, and its loyalty scheme.

Domino's is also in need of a long-term CFO until 16 March, when Andrea joins from the drinks company C&C Group. For now, Richard Snow is interim finance chief.