Has Pizza Peaked? Domino's Pizza Leader Steps Down After Pivot Into Fried Chicken.
A chief executive of the UK's Domino's Pizza chain who suggested the UK might have hit maximum pizza demand while expanding the chain into fried chicken has been removed after tensions with its directors.
Leadership Change
Andrew Rennie is leaving after only 24 months in leadership, and will be succeeded on an temporary basis by the company's operations head, Frampton, while the pizza giant looks for a permanent CEO.
The outgoing executive, who served at the company for over 20 years, had attempted to pivot Britain's largest pizza delivery company towards poultry-based products, remarking earlier this month there was not “huge potential” left in the British pizza industry. He observed poultry was the quickest rising protein in the globe.
Board Tensions
Reports indicate that there was tension between Rennie and the board over his approach and management style, although Domino's release said he was stepping down “by mutual agreement”.
Recent Brand Launch
In the autumn, Domino's launched its Chick 'N' Dip product line – which Rennie called a “significant new phase” for the organization – and is trialling it in 210 outlets in the north-west of England and Northern Ireland.
While the business is still intending to launch it across its nearly 1,400 branches in 2026 as scheduled, it views chicken products as an addition to its main pizza offerings.
Leadership Statement
The Domino's chair, the company chair, said: “We are confident that there are a range of possibilities to enhance value and value creation in Domino's core business. We are focused on finding the suitable leader to direct the systematic rollout of that expansion plan.”
Industry Challenges
Recently, Domino's, which has a substantial customer base in the UK and Ireland, said sales declined by 1.5% in the third quarter. In the summer, it alerted that the takeaway market had “become tougher” as it attributed weaker consumer confidence in the run-up to the budget and higher payroll outlays for weaker-than-expected sales and a 15 percent decline in half-year profits.
Other pizza operators are also experiencing difficulties. Pizza Hut revealed the closure of dozens of outlets a month ago, after the business behind its outlets entered insolvency.
Health Efforts
Responding to consumer trends towards better nutrition, Domino's has launched light options, such as its Thin & Crispy range of bakes below 400 kcal as well as vegan and allergy-friendly options. A big pepperoni bake has over 2,300 kcal. A big margherita has 2,171 kcal, while a personal has 909 kcal.
Acting Management
The interim chief has been with the company since the recent past, and was formerly with the gaming group William Hill. It is understood that she is not seeking to assume the CEO position long-term.
She commented: “We have a number of active expansion and performance initiatives that we will be focused on executing at pace.”
She said these comprised ongoing development on the company's logistics network and new item creation, and its rewards program.
Domino's is also in need of a long-term chief financial officer until the spring, when Andy Andrea starts from the beverage producer C&C Group. For now, Snow acts as temporary CFO.