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

The head of Domino's Pizza Group who suggested the UK might have reached pizza saturation while broadening the franchise into chicken products has been replaced after disagreements with its governing body.

Executive Shake-Up

The former CEO is departing after just two years in leadership, and will be replaced on an acting basis by the company's operations head, Nicola Frampton, while Domino's seeks a new leader.

Rennie, who served at Domino's for over 20 years, had aimed to shift Britain's biggest pizza takeaway chain towards chicken offerings, stating recently there was not “significant expansion” left in the pizza sector in the UK. He noted chicken was the most rapidly expanding menu item in the world.

Governance Friction

Reports indicate that there was tension between Rennie and the board over his approach and direction, although the company's official statement said he was departing “through mutual consent”.

New Product Introduction

In September, Domino's launched its poultry offering – which Rennie described as a “major strategic shift” for the company – and is piloting it in over 200 locations in the North West region and the province.

While the company is still intending to launch it across its nearly 1,400 branches in the coming year as planned, it considers fried chicken as complementary to its core pizza business.

Leadership Statement

Bull, the Domino's chairman, said: “The board believes that there are a number of opportunities to enhance value and profitability in Domino's core business. We are concentrating on finding the ideal CEO to oversee the systematic rollout of that development approach.”

Industry Challenges

In the latest update, Domino's, which has a substantial customer base in the UK and Ireland, said transactions dipped by 1.5% in the third quarter. In August, it alerted that the quick-service industry had “become tougher” as it attributed reduced spending in the run-up to the budget and rising wage costs for disappointing revenue and a 15% drop in half-year profits.

Other pizza operators are also experiencing difficulties. Another major chain disclosed the shutting of multiple locations a last month, after the firm behind its outlets faced financial collapse.

Wellness Efforts

Trying to keep up with customer preferences towards balanced diets, Domino's has launched reduced-calorie options, such as its Thin & Crispy range of pizzas below 400 kcal as well as plant-based and wheat-free pizzas. A family-sized pepperoni has 2,311 calories. A family cheese pizza has 2,171 kcal, while a small has 909 kcal.

Interim Leadership

Nicola Frampton has been with the company since the recent past, and previously worked for the betting firm a well-known operator. It is understood that she prefers not to occupy the top job permanently.

She said: “We have a several current expansion and performance initiatives that we will be dedicated to carrying out at speed.”

She said these included additional efforts on the company's logistics network and menu innovation, and its customer retention initiative.

The pizza chain is also without a long-term chief financial officer until the spring, when Andy Andrea joins from the beverage producer C&C Group. For now, Snow is interim finance chief.