Peak Pizza? Domino's Pizza CEO Exits Following Pivot Towards Fried Chicken.

The chief executive of Domino's Pizza Group who proposed the UK might have hit pizza saturation while diversifying the franchise into chicken products has been replaced after conflicts with its governing body.

Executive Shake-Up

Andrew Rennie is leaving after just two years in charge, and will be succeeded on an acting basis by the company's operations head, Nicola Frampton, while the pizza giant looks for a permanent CEO.

Rennie, who worked for the company for more than two decades, had aimed to shift Britain's leading pizza delivery company towards fried chicken, stating earlier this month there was not “massive growth” left in the pizza sector in the UK. He noted chicken was the most rapidly expanding menu item in the international market.

Governance Disagreements

Sources suggest that there was friction between the CEO and the governance team over his strategy and direction, although the company's official statement said he was stepping down “by mutual agreement”.

New Brand Launch

In September, Domino's launched its Chick 'N' Dip offering – which Rennie referred to as a “significant new phase” for the company – and is trialling it in over 200 locations in the North West region and the province.

While the business is still planning to expand it across its almost 1,400 stores in the coming year as planned, it regards fried chicken as a supplement for its main pizza offerings.

Leadership Comment

Bull, the company chair, commented: “The board believes that there are a series of prospects to enhance value and profitability in our primary operations. We are concentrating on finding the ideal CEO to oversee the disciplined execution of that expansion plan.”

Market Difficulties

In the latest update, the pizza delivery giant, which has 13 million customers in the UK and Ireland, said transactions fell by 1.5% in the Q3. In the summer, it cautioned that the food delivery sector had “become tougher” as it attributed reduced spending in the run-up to the budget and increasing labor expenses for below-target performance and a significant fall in interim earnings.

Other pizza operators are also experiencing difficulties. Pizza Hut disclosed the closing of multiple locations a last month, after the company behind its UK venues fell into administration.

Health Efforts

Adapting to consumer trends towards balanced diets, the company has rolled out lower-calorie options, such as its Thin & Crispy selection of pizzas below 400 kcal as well as plant-based and allergy-friendly pizzas. A large pepperoni pizza has 2,311 calories. 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 2021, and was formerly with the gambling company William Hill. It is thought that she prefers not to occupy the chief executive role on a full-time basis.

Frampton stated: “We have a multiple current growth and operational projects that we will be dedicated to carrying out at a rapid rate.”

She said these involved ongoing development on the organization's logistics network and new item creation, and its loyalty scheme.

The pizza chain is also without a full-time finance director until 16 March, when Andy Andrea starts from the Irish cider and beer maker C&C Group. For now, Richard Snow serves as acting financial officer.