Peak Pizza? Domino's Pizza Chief Executive Steps Down Following Shift Towards Fried Chicken.

The boss of the UK's Domino's Pizza chain who proposed the UK might have hit pizza saturation while broadening the company into fried chicken has been removed after disagreements with its directors.

Leadership Transition

Rennie is leaving after a brief tenure in charge, and will be replaced on an interim basis by the company's chief operating officer, Nicola Frampton, while the pizza giant looks for a permanent CEO.

Rennie, who was with Domino's for more than two decades, had sought to shift Britain's biggest pizza takeaway chain towards poultry-based products, remarking recently there was not “huge potential” left in the British pizza industry. He observed poultry was the most rapidly expanding protein in the world.

Governance Tensions

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

Recent Brand Launch

In the autumn, the chain launched its poultry product line – which the former chief described as a “significant new phase” for the company – and is piloting it in select stores in the north-west of England and Northern Ireland.

While the firm is still going to roll it out across its nearly 1,400 branches next year as scheduled, it views fried chicken as an addition to its main pizza offerings.

Board Comment

The Domino's chair, the company chair, stated: “We are confident that there are a series of prospects to drive further growth and value creation in the main pizza segment. We are concentrating on identifying the suitable leader to lead the careful implementation of that development approach.”

Market Difficulties

Recently, Domino's, which has millions of users in the British Isles, said orders dipped by one and a half percent in the Q3. In the summer, it warned that the takeaway market had “intensified” as it attributed economic uncertainty in the lead-up to the budget and higher payroll outlays for weaker-than-expected sales and a 15% drop in six-month income.

Rival chains are also struggling. Pizza Hut disclosed the shutting of 68 restaurants a recently, after the business behind its outlets faced financial collapse.

Wellness Efforts

Trying to keep up with consumer trends towards better nutrition, Domino's has rolled out lower-calorie options, such as its thin-crust selection of bakes below 400 calories as well as plant-based and allergy-friendly options. A family-sized pepperoni has 2,311 kcals. A family cheese pizza has 2,171 kcal, while a small has 909 calories.

Interim Management

Frampton has been with the company since 2021, and was formerly with the gaming group a well-known operator. It is understood that she prefers not to occupy the top job on a full-time basis.

Frampton stated: “We have a number of current development and operational projects that we will be dedicated to carrying out at a rapid rate.”

She said these included additional efforts on the organization's supply chain and menu innovation, and its loyalty scheme.

The pizza chain is also lacking a permanent CFO until March 16, when a new appointee starts from the Irish cider and beer maker C&C Group. Until then, Snow is temporary CFO.