Peak Pizza? Domino's Pizza CEO Exits After Move Into Fried Chicken.

The head of the UK's Domino's Pizza chain who proposed the UK might have hit peak pizza while expanding the franchise into fried chicken has been ousted after tensions with its board.

Executive Change

Rennie is departing after a brief tenure in the top role, and will be replaced on an acting basis by the organization's operations head, Nicola Frampton, while Domino's searches for a long-term chief.

The outgoing executive, who served at the company for over 20 years, had attempted to redirect Britain's leading pizza delivery company towards chicken offerings, commenting in a recent interview there was not “significant expansion” left in the UK's pizza market. He noted poultry was the quickest rising food category in the world.

Board Disagreements

Reports indicate that there was friction between the CEO and the governance team over his strategy and direction, although Domino's release said he was departing “through mutual consent”.

New Product Introduction

In September, the chain unveiled its Chick 'N' Dip brand – which the former chief described as a “significant new phase” for the company – and is piloting it in 210 outlets in the north-west of England and the province.

While the business is still going to roll it out across its extensive network next year as intended, it regards chicken products as complementary to its primary pizza operations.

Board Statement

The Domino's chair, the company chairman, stated: “Directors think that there are a series of prospects to drive further growth and value creation in Domino's core business. We are focused on selecting the suitable leader to lead the careful implementation of that development approach.”

Market Difficulties

Recently, the pizza delivery giant, which has 13 million customers in the British Isles, said orders fell by one and a half percent in the latest quarter. In August, it warned that the food delivery sector had “intensified” as it blamed reduced spending in the run-up to the budget and rising wage costs for disappointing revenue and a 15% drop in half-year profits.

Competitors are also experiencing difficulties. Another major chain announced the closing of dozens of outlets a last month, after the company behind its British operations fell into administration.

Health Efforts

Adapting to market shifts towards balanced diets, the company has launched reduced-calorie products, such as its light base range of bakes below 400 calories as well as plant-based and gluten-free options. A family-sized pepperoni has 2,311 kcals. A family cheese pizza has 2,171, while a personal has 909 calories.

Interim Management

Frampton has been with the company since 2021, and had a background at the gaming group a well-known operator. It is thought that she prefers not to take on the top job long-term.

She commented: “We have a number of ongoing expansion and performance initiatives that we will be dedicated to executing at a rapid rate.”

Frampton noted these included additional efforts on the company's procurement system and product development, and its rewards program.

The pizza chain is also in need of a permanent finance director until 16 March, when Andy Andrea joins from the Irish cider and beer maker C&C Group. In the meantime, Richard Snow serves as temporary CFO.