Has Pizza Peaked? Domino's CEO Departs After Pivot Towards Chicken.

The boss of Domino's Pizza Group who proposed the UK might have hit maximum pizza demand while expanding the franchise into poultry items has been ousted after conflicts with its board.

Leadership Shake-Up

The former CEO is exiting after just two years in the top role, and will be replaced on an temporary basis by the company's chief operating officer, Frampton, while the pizza giant searches for a new leader.

Rennie, who was with Domino's for more than two decades, had sought to redirect the UK's leading pizza takeaway chain towards poultry-based products, commenting earlier this month there was not “massive growth” left in the UK's pizza market. He said chicken was the most rapidly expanding food category in the world.

Board Tensions

Sources suggest that there was friction between the CEO and the directors over his focus and business vision, although the company's release said he was departing “by mutual agreement”.

New Brand Launch

In September, the chain launched its poultry offering – which the former chief called a “bold new chapter” for the company – and is piloting it in select stores in the North West region and Northern Ireland.

While the business is still planning to expand it across its almost 1,400 stores in the coming year as planned, it regards chicken products as an addition to its main pizza offerings.

Leadership Statement

The Domino's chair, the Domino's chair, commented: “Directors think that there are a number of opportunities to boost expansion and value creation in our primary operations. We are prioritizing selecting the ideal CEO to oversee the disciplined execution of that growth strategy.”

Market Difficulties

In the latest update, the pizza delivery giant, which has millions of users in the UK and Ireland, said sales fell by one and a half percent in the third quarter. In August, it alerted that the quick-service industry had “become tougher” as it attributed weaker consumer confidence in the lead-up to the government announcement and rising wage costs for below-target performance and a significant fall in half-year profits.

Rival chains are also struggling. Another major chain announced the closing of multiple locations a recently, after the firm behind its outlets faced financial collapse.

Health Efforts

Trying to keep up with market shifts towards better nutrition, Domino's has launched reduced-calorie items, such as its thin-crust range of pizzas below 400 kcal as well as vegan and gluten-free options. A large pepperoni pizza has 2,311 calories. A family cheese pizza has 2,171, while a personal has under 1,000 calories.

Interim Leadership

The interim chief has been with Domino's since 2021, and previously worked for the gaming group a well-known operator. It is believed that she is not seeking to occupy the CEO position long-term.

She said: “The company has a number of active growth and operational projects that we will be concentrating on carrying out at a rapid rate.”

Frampton noted these included additional efforts on the organization's supply chain and new item creation, and its loyalty scheme.

The pizza chain is also in need of a permanent CFO until March 16, when a new appointee joins from the beverage producer C&C Group. Until then, Snow serves as interim finance chief.

Richard Gill
Richard Gill

Elara Vance is a space technology journalist with a passion for exploring the frontiers of science and innovation.