Peak Pizza? Domino's Pizza Leader Exits After Move Towards Chicken.

A head of Domino's Pizza Group who suggested the United Kingdom might have hit peak pizza while broadening the chain into poultry items has been replaced after tensions with its directors.

Leadership Change

Andrew Rennie is exiting after only 24 months in charge, and will be replaced on an acting basis by the company's operations head, Nicola Frampton, while the pizza giant looks for a permanent CEO.

Rennie, who served at the company for more than two decades, had aimed to shift the UK's leading pizza takeaway chain towards chicken offerings, commenting in a recent interview there was not “significant expansion” left in the British pizza industry. He noted poultry was the fastest-growing protein in the globe.

Board Disagreements

It is understood that there was tension between Rennie and the directors over his focus and business vision, although Domino's official statement said he was leaving “by mutual agreement”.

Recent Brand Launch

In September, the chain launched its chicken-focused brand – which Rennie referred to as a “bold new chapter” for the company – and is testing it in 210 outlets in the north-west of England and the province.

While the firm is still planning to expand it across its extensive network in the coming year as planned, it considers chicken products as complementary to its core pizza business.

Board Comment

The Domino's chair, the company chairman, said: “The board believes that there are a range of possibilities to enhance value and value creation in Domino's core business. We are concentrating on identifying the right chief executive to lead the disciplined execution of that expansion plan.”

Market Challenges

In the latest update, Domino's, which has a substantial customer base in the UK and Ireland, said sales fell by one and a half percent in the Q3. In the summer, it alerted that the takeaway market had “intensified” as it blamed weaker consumer confidence in the run-up to the government announcement and rising wage costs for weaker-than-expected sales and a 15 percent decline in half-year profits.

Rival chains are also facing challenges. Pizza Hut disclosed the shutting of 68 restaurants a recently, after the business behind its UK venues faced financial collapse.

Health Initiatives

Responding to market shifts towards balanced diets, the company has launched reduced-calorie products, such as its Thin & Crispy range of bakes below 400 kcals as well as vegan and gluten-free pizzas. A big pepperoni bake has over 2,300 kcal. A family cheese pizza has 2,171 kcal, while a personal has under 1,000 calories.

Acting Leadership

Nicola Frampton has been with Domino's since 2021, and previously worked for the gambling company William Hill. It is thought that she does not want to assume the CEO position permanently.

Frampton stated: “Our team has a multiple ongoing growth and efficiency programs that we will be concentrating on executing at a rapid rate.”

She said these included further work on the organization's supply chain and product development, and its rewards program.

The pizza chain is also lacking a permanent CFO until the spring, when Andrea starts from the drinks company a well-known firm. Until then, Snow serves as acting financial officer.

Crystal Eaton
Crystal Eaton

Financial technology expert with a passion for developing secure payment systems and helping businesses grow.