Peak Pizza? Domino's Leader Departs After Shift Towards Fried Chicken.
The head of the UK's Domino's Pizza chain who suggested the UK might have reached maximum pizza demand while expanding the company into chicken products has been replaced after tensions with its board.
Leadership Change
Andrew Rennie is departing after only 24 months in charge, and will be replaced on an acting basis by the company's operations head, Frampton, while Domino's looks for a new leader.
The outgoing executive, who was with the company for more than two decades, had sought to shift Britain's largest pizza takeaway chain towards fried chicken, remarking recently there was not “huge potential” left in the UK's pizza market. He said chicken was the fastest-growing protein in the international market.
Governance Tensions
It is understood that there was disagreement between Rennie and the directors over his strategy and direction, although Domino's official statement said he was leaving “through mutual consent”.
Recent Brand Introduction
In the autumn, Domino's launched its Chick 'N' Dip brand – which the former chief called a “major strategic shift” for the group – and is trialling it in select stores in the north-west of England and the province.
While the firm is still intending to launch it across its almost 1,400 stores in the coming year as planned, it views chicken products as an addition to its core pizza business.
Board Statement
Bull, the company chair, said: “Directors think that there are a series of prospects to enhance value and value creation in the main pizza segment. We are prioritizing finding the suitable leader to lead the systematic rollout of that development approach.”
Industry Challenges
In the latest update, the pizza delivery giant, which has 13 million customers in the British Isles, said orders dipped by 1.5% in the latest quarter. In August, it alerted that the takeaway market had “intensified” as it attributed reduced spending in the run-up to the budget and rising wage costs for weaker-than-expected sales and a significant fall in half-year profits.
Rival chains are also facing challenges. Another major chain disclosed the closure of multiple locations a month ago, after the company behind its outlets entered insolvency.
Wellness Efforts
Adapting to consumer trends towards balanced diets, Domino's has introduced reduced-calorie products, such as its light base line of pizzas below 400 kcal as well as plant-based and gluten-free pizzas. A large pepperoni pizza has 2,311 kcals. A family cheese pizza has over 2,100, while a personal has 909 calories.
Interim Leadership
The interim chief has been with the company since 2021, and previously worked for the gaming group a well-known operator. It is understood that she prefers not to occupy the top job permanently.
She said: “We have a multiple current development and operational projects that we will be concentrating on carrying out at a rapid rate.”
She said these included additional efforts on the company's logistics network and product development, and its loyalty scheme.
The pizza chain is also in need of a full-time CFO until March 16, when Andrea comes aboard from the Irish cider and beer maker C&C Group. In the meantime, Snow serves as temporary CFO.