Has Pizza Peaked? Domino's Chief Executive Exits Following Move Towards Fried Chicken.

The head of Domino's Pizza Group who proposed the United Kingdom might have hit maximum pizza demand while expanding the franchise into fried chicken has been replaced after tensions with its governing body.

Leadership Shake-Up

Rennie is leaving after only 24 months in charge, and will be succeeded on an interim basis by the company's operations head, Nicola Frampton, while Domino's seeks a permanent CEO.

The outgoing executive, who served at Domino's for a substantial period, had sought to pivot Britain's largest pizza delivery company towards fried chicken, remarking earlier this month there was not “significant expansion” left in the British pizza industry. He said poultry was the most rapidly expanding food category in the international market.

Board Disagreements

Reports indicate that there was friction between the CEO and the governance team over his focus and direction, although the company's release said he was departing “as a joint decision”.

Recent Brand Launch

In the autumn, Domino's unveiled its Chick 'N' Dip offering – which Rennie described as a “significant new phase” for the company – and is testing it in 210 outlets in the north-west of England and the province.

While the company is still going to roll it out across its nearly 1,400 branches next year as planned, it considers chicken products as an addition to its main pizza offerings.

Board Comment

Bull, the Domino's chair, stated: “We are confident that there are a range of possibilities to drive further growth and profitability in Domino's core business. We are focused on finding the ideal CEO to lead the careful implementation of that expansion plan.”

Industry Challenges

In the latest update, Domino's, which has a substantial customer base in the UK and Ireland, said transactions declined by 1.5% in the third quarter. In August, it warned that the food delivery sector had “intensified” as it blamed weaker consumer confidence in the lead-up to the government announcement and increasing labor expenses for disappointing revenue and a 15 percent decline in six-month income.

Competitors are also experiencing difficulties. Another major chain disclosed the closing of dozens of outlets a month ago, after the business behind its UK venues faced financial collapse.

Wellness Efforts

Trying to keep up with customer preferences towards better nutrition, Domino's has rolled out light products, such as its light base range of bakes below 400 kcal as well as vegan and allergy-friendly options. A large pepperoni pizza has over 2,300 kcal. A large cheese and tomato pizza has 2,171 kcal, while a small has 909 calories.

Interim Leadership

Frampton has been with the company since the recent past, and was formerly with the gaming group William Hill. It is thought that she does not want to occupy the chief executive role on a full-time basis.

Frampton stated: “We have a several active development and operational projects that we will be focused on executing at pace.”

She added these comprised ongoing development on the company's procurement system and new item creation, and its loyalty scheme.

The pizza chain is also without a permanent finance director until 16 March, when Andrea joins from the beverage producer C&C Group. For now, Snow acts as interim finance chief.