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Has Pizza Peaked? Domino's Pizza CEO Exits After Move Into Chicken.
A chief executive of Domino's Pizza Group who indicated the UK might have reached maximum pizza demand while diversifying the franchise into chicken products has been ousted after conflicts with its governing body.
Executive Change
Andrew Rennie is leaving after just two years in the top role, and will be replaced on an acting basis by the company's operations head, Nicola Frampton, while Domino's looks for a long-term chief.
The outgoing executive, who worked for the company for a substantial period, had attempted to pivot the UK's leading pizza delivery company towards fried chicken, stating earlier this month there was not “significant expansion” left in the UK's pizza market. He said chicken was the fastest-growing food category in the globe.
Governance Disagreements
Reports indicate that there was tension between the CEO and the board over his approach and management style, although Domino's announcement said he was departing “through mutual consent”.
New Product Launch
In September, Domino's introduced its Chick 'N' Dip brand – which Rennie described as a “bold new chapter” for the organization – and is trialling 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 almost 1,400 stores next year as scheduled, it regards fried chicken as an addition to its main pizza offerings.
Board Comment
Ian Bull, the Domino's chairman, commented: “Directors think that there are a range of possibilities to enhance value and value creation in Domino's core business. We are focused on identifying the suitable leader to lead the disciplined execution of that expansion plan.”
Industry Difficulties
In the latest update, the pizza delivery giant, which has a substantial customer base in the British Isles, said transactions declined by 1.5 percent in the latest quarter. In August, it alerted that the food delivery sector had “become tougher” as it blamed weaker consumer confidence in the lead-up to the government announcement and rising wage costs for weaker-than-expected sales and a significant fall in interim earnings.
Rival chains are also struggling. Pizza Hut disclosed the closure of 68 restaurants a recently, after the firm behind its UK venues fell into administration.
Health Efforts
Responding to consumer trends towards balanced diets, the company has introduced reduced-calorie items, such as its thin-crust line of pizzas below 400 kcals as well as vegan and gluten-free pizzas. A large pepperoni pizza has 2,311 kcals. A family cheese pizza has 2,171, while a personal has under 1,000 calories.
Interim Leadership
The interim chief has been with the company since 2021, and was formerly with the betting firm William Hill. It is believed that she is not seeking to take on the top job permanently.
She said: “We have a multiple ongoing expansion and performance initiatives that we will be concentrating on implementing at pace.”
She added these involved ongoing development on the organization's logistics network and product development, and its rewards program.
Domino's is also lacking a long-term chief financial officer until the spring, when Andy Andrea joins from the beverage producer C&C Group. For now, Snow acts as interim finance chief.
Clarence Scott
Elara is a passionate esports journalist with over a decade of experience covering major gaming events and trends.
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