Peak Pizza? Domino's Leader Exits After Shift Towards Chicken.

The head of the UK's Domino's Pizza chain who proposed the UK might have reached peak pizza while diversifying the franchise into poultry items has been ousted after conflicts with its directors.

Leadership Transition

The former CEO is leaving after just two years in the top role, and will be succeeded on an interim basis by the company's chief operating officer, Frampton, while Domino's seeks a new leader.

Rennie, who served at Domino's for over 20 years, had attempted to redirect Britain's leading pizza delivery company towards chicken offerings, remarking earlier this month there was not “significant expansion” left in the British pizza industry. He noted poultry was the most rapidly expanding food category in the world.

Governance Tensions

Sources suggest that there was tension between the CEO and the governance team over his focus and management style, although Domino's official statement said he was departing “through mutual consent”.

New Brand Introduction

In the autumn, the chain unveiled its chicken-focused brand – which Rennie described as a “bold new chapter” for the organization – and is trialling it in 210 outlets in the north-west of England and Northern Ireland.

While the business is still going to roll it out across its almost 1,400 stores in the coming year as intended, it views fried chicken as an addition to its core pizza business.

Leadership Statement

The Domino's chair, the Domino's chair, commented: “The board believes that there are a range of possibilities to drive further growth and performance improvement in Domino's core business. We are prioritizing finding the suitable leader to oversee the disciplined execution of that development approach.”

Market Challenges

Earlier this month, the pizza delivery giant, which has a substantial customer base in the British Isles, said transactions declined by 1.5% in the latest quarter. In the summer, it alerted that the quick-service industry had “intensified” as it blamed reduced spending in the period before the budget and rising wage costs for weaker-than-expected sales and a significant fall in interim earnings.

Competitors are also experiencing difficulties. Another major chain announced the shutting of 68 restaurants a recently, after the firm behind its British operations entered insolvency.

Health Initiatives

Trying to keep up with consumer trends towards healthier eating, Domino's has introduced light products, such as its light base line of pizzas below 400 calories as well as meat-free and gluten-free options. A large pepperoni pizza has over 2,300 kcal. A large cheese and tomato pizza has 2,171 kcal, while a small has under 1,000 calories.

Acting Leadership

Frampton has been with the company since 2021, and previously worked for the gaming group a well-known operator. It is understood that she does not want to assume the chief executive role on a full-time basis.

Frampton stated: “We have a number of active growth and efficiency programs that we will be dedicated to implementing at pace.”

She said these included additional efforts on the company's supply chain and new item creation, and its rewards program.

Domino's is also without a long-term chief financial officer until the spring, when a new appointee starts from the drinks company C&C Group. For now, Snow is interim finance chief.