Has Pizza Peaked? Domino's Pizza Chief Executive Departs Following Shift Into Chicken.

A boss of Domino's Pizza Group who suggested the United Kingdom might have reached pizza saturation while broadening the chain into poultry items has been ousted after conflicts with its governing body.

Leadership Transition

Rennie is leaving after a brief tenure in leadership, and will be replaced on an temporary basis by the company's operations head, Frampton, while the pizza giant looks for a permanent CEO.

Rennie, who worked for Domino's for over 20 years, had sought to redirect Britain's largest pizza takeaway chain towards poultry-based products, remarking earlier this month there was not “massive growth” left in the pizza sector in the UK. He noted poultry was the quickest rising protein in the globe.

Board Disagreements

It is understood that there was friction between Rennie and the directors over his focus and direction, although Domino's announcement said he was leaving “as a joint decision”.

New Brand Launch

In September, the chain unveiled its Chick 'N' Dip offering – which Rennie referred to as a “bold new chapter” for the company – and is trialling it in select stores in the north-west of England and Northern Ireland.

While the company is still going to roll it out across its extensive network next year as planned, it views chicken products as an addition to its main pizza offerings.

Board Comment

Ian Bull, the Domino's chairman, commented: “The board believes that there are a range of possibilities to boost expansion and performance improvement in the main pizza segment. We are prioritizing finding the suitable leader to direct the careful implementation of that growth strategy.”

Industry Challenges

Recently, the pizza delivery giant, which has millions of users in the British Isles, said sales dipped by 1.5% in the latest quarter. In August, it warned that the quick-service industry had “grown more challenging” as it blamed economic uncertainty in the run-up to the budget and higher payroll outlays for weaker-than-expected sales and a 15% drop in interim earnings.

Other pizza operators are also struggling. Pizza Hut disclosed the shutting of 68 restaurants a recently, after the company behind its British operations fell into administration.

Health Efforts

Responding to consumer trends towards balanced diets, Domino's has rolled out reduced-calorie items, such as its light base range of bakes below 400 calories as well as plant-based and allergy-friendly pizzas. A family-sized pepperoni has over 2,300 kcal. A big margherita has 2,171, while a personal has under 1,000 calories.

Acting Management

The interim chief has been with Domino's since the recent past, and was formerly with the betting firm a well-known operator. It is believed that she is not seeking to occupy the chief executive role permanently.

Frampton stated: “We have a multiple ongoing expansion and efficiency programs that we will be focused on executing at a rapid rate.”

She added these involved additional efforts on the organization's logistics network and new item creation, and its customer retention initiative.

The pizza chain is also lacking a full-time CFO until the spring, when Andrea comes aboard from the beverage producer C&C Group. In the meantime, Richard Snow is interim finance chief.