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

The head of the UK's Domino's Pizza chain who indicated the United Kingdom might have reached peak pizza while diversifying the company into fried chicken has been replaced after conflicts with its board.

Executive Change

The former CEO is departing after just two years in leadership, and will be replaced on an temporary basis by the company's operations head, Frampton, while Domino's searches for a permanent CEO.

Rennie, who served at the company for more than two decades, had attempted to redirect Britain's biggest pizza delivery company towards chicken offerings, remarking recently there was not “huge potential” left in the British pizza industry. He said poultry was the quickest rising menu item in the international market.

Board Disagreements

Reports indicate that there was friction between the CEO and the board over his approach and management style, although Domino's announcement said he was stepping down “by mutual agreement”.

Recent Brand Launch

In the autumn, Domino's launched its chicken-focused offering – which the former chief referred to as a “bold new chapter” for the group – and is trialling it in 210 outlets in the North West region and Northern Ireland.

While the firm is still intending to launch it across its extensive network in the coming year as planned, it considers chicken products as complementary to its main pizza offerings.

Leadership Comment

Bull, the Domino's chairman, said: “Directors think that there are a series of prospects to boost expansion and profitability in the main pizza segment. We are prioritizing selecting the right chief executive to oversee the careful implementation 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% in the third quarter. In August, it alerted that the takeaway market had “become tougher” as it blamed weaker consumer confidence in the period before the government announcement and increasing labor expenses for below-target performance and a 15% drop in interim earnings.

Other pizza operators are also experiencing difficulties. Another major chain disclosed the closing of 68 restaurants a last month, after the business behind its UK venues entered insolvency.

Wellness Efforts

Adapting to customer preferences towards better nutrition, the company has rolled out reduced-calorie items, such as its thin-crust selection of pizzas below 400 kcal as well as meat-free and gluten-free pizzas. A large pepperoni pizza has over 2,300 kcal. A family cheese pizza has over 2,100, while a small has under 1,000 calories.

Interim Management

Nicola Frampton has been with the company since the recent past, and had a background at the gaming group William Hill. It is thought that she is not seeking to take on the chief executive role on a full-time basis.

She commented: “The company has a several active development and efficiency programs that we will be dedicated to implementing at speed.”

She said these comprised further work on the company's supply chain and new item creation, and its loyalty scheme.

Domino's is also lacking a permanent chief financial officer until March 16, when Andrea starts from the Irish cider and beer maker a well-known firm. In the meantime, Snow serves as temporary CFO.