Peak Pizza? Domino's Pizza Chief Executive Exits After Move Towards Chicken.

The boss of Domino's Pizza Group who indicated the United Kingdom might have reached pizza saturation while diversifying the franchise into chicken products has been replaced after conflicts with its governing body.

Executive Change

Andrew Rennie is leaving after just two years in leadership, and will be replaced on an interim basis by the organization's operations head, Frampton, while Domino's searches for a permanent CEO.

The outgoing executive, who was with Domino's for over 20 years, had attempted to pivot the UK's largest pizza takeaway chain towards fried chicken, commenting in a recent interview there was not “huge potential” left in the UK's pizza market. He noted poultry was the quickest rising menu item in the international market.

Governance Disagreements

Sources suggest that there was friction between the CEO and the board over his strategy and business vision, although the company's release said he was stepping down “through mutual consent”.

New Product Launch

In September, Domino's unveiled its Chick 'N' Dip offering – which the former chief called a “bold new chapter” for the group – and is piloting 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 nearly 1,400 branches next year as planned, it considers fried chicken as complementary to its main pizza offerings.

Board Statement

Ian Bull, the Domino's chair, said: “We are confident that there are a number of opportunities to enhance value and performance improvement in the main pizza segment. We are focused on identifying the suitable leader to oversee the careful implementation of that development approach.”

Industry Difficulties

In the latest update, the pizza delivery giant, which has a substantial customer base in the UK and Ireland, said orders declined by 1.5 percent in the third quarter. In the summer, it cautioned that the quick-service industry had “intensified” as it blamed reduced spending in the lead-up to the budget and higher payroll outlays for disappointing revenue and a 15% drop in half-year profits.

Competitors are also struggling. Pizza Hut disclosed the closure of multiple locations a recently, after the firm behind its British operations fell into administration.

Wellness Initiatives

Adapting to customer preferences towards balanced diets, the company has introduced lower-calorie options, such as its light base selection of pizzas below 400 kcals as well as meat-free and wheat-free pizzas. A family-sized pepperoni has 2,311 kcals. A family cheese pizza has 2,171 kcal, while a small has under 1,000 calories.

Acting Leadership

Nicola Frampton has been with Domino's since the recent past, and had a background at the gaming group a well-known operator. It is understood that she does not want to assume the top job long-term.

Frampton stated: “The company has a multiple ongoing development and performance initiatives that we will be dedicated to carrying out at speed.”

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

Domino's is also in need of a long-term chief financial officer until the spring, when Andy Andrea comes aboard from the Irish cider and beer maker C&C Group. For now, Snow is interim finance chief.