Has Pizza Peaked? Domino's Chief Executive Exits After Pivot Into Fried Chicken.

The boss of Domino's Pizza Group who proposed the United Kingdom might have hit maximum pizza demand while expanding the franchise into fried chicken has been replaced after tensions with its governing body.

Executive Transition

Andrew Rennie is departing after only 24 months in the top role, and will be replaced on an temporary basis by the organization's operations head, Nicola Frampton, while the pizza giant searches for a new leader.

The outgoing executive, who was with the company for over 20 years, had aimed to shift Britain's leading pizza food delivery firm towards fried chicken, stating earlier this month there was not “massive growth” left in the British pizza industry. He noted poultry was the fastest-growing protein in the world.

Board Friction

Reports indicate that there was friction between Rennie and the governance team over his focus and business vision, although the company's announcement said he was leaving “by mutual agreement”.

New Product Launch

In September, the chain unveiled its Chick 'N' Dip brand – which Rennie called a “significant new phase” for the group – and is testing it in 210 outlets in the north-west of England and the province.

While the business is still intending to launch it across its nearly 1,400 branches in the coming year as intended, it considers chicken products as a supplement for its primary pizza operations.

Board Statement

The Domino's chair, the Domino's chairman, commented: “We are confident that there are a range of possibilities to drive further growth and value creation in the main pizza segment. We are focused on identifying the right chief executive to oversee the disciplined execution of that expansion plan.”

Market Difficulties

In the latest update, the pizza delivery giant, which has a substantial customer base in the British Isles, said orders declined by 1.5 percent in the latest quarter. In the summer, it cautioned that the food delivery sector had “grown more challenging” as it attributed economic uncertainty in the period before the government announcement and higher payroll outlays for disappointing revenue and a significant fall in six-month income.

Competitors are also facing challenges. Another major chain revealed the shutting of multiple locations a last month, after the business behind its British operations faced financial collapse.

Health Initiatives

Responding to customer preferences towards balanced diets, the company has introduced lower-calorie items, such as its light base range of pizzas below 400 kcal as well as meat-free and wheat-free options. A large pepperoni pizza has over 2,300 kcal. A large cheese and tomato pizza has 2,171 kcal, while a small has 909 calories.

Interim Management

The interim chief has been with the company since the recent past, and previously worked for the gaming group a well-known operator. It is believed that she is not seeking to take on the top job on a full-time basis.

She commented: “We have a number of active development and operational projects that we will be concentrating on implementing at a rapid rate.”

Frampton noted these involved additional efforts on the company's procurement system and menu innovation, and its loyalty scheme.

Domino's is also in need of a long-term finance director until the spring, when Andrea joins from the drinks company C&C Group. For now, Snow serves as interim finance chief.