Has Pizza Peaked? Domino's Pizza Chief Executive Steps Down After Move Towards Chicken.

The head of Domino's Pizza Group who proposed the United Kingdom might have hit peak pizza while expanding the chain into poultry items has been removed after disagreements with its governing body.

Leadership Shake-Up

Rennie is departing after a brief tenure in leadership, and will be succeeded on an temporary basis by the organization's operations head, Frampton, while the pizza giant looks for a permanent CEO.

The outgoing executive, who was with the company for over 20 years, had sought to pivot Britain's leading pizza delivery company towards fried chicken, remarking in a recent interview there was not “huge potential” left in the British pizza industry. He said poultry was the most rapidly expanding menu item in the globe.

Governance Friction

Reports indicate that there was disagreement between Rennie and the governance team over his focus and direction, although Domino's announcement said he was stepping down “through mutual consent”.

New Product Launch

In the autumn, Domino's unveiled its chicken-focused brand – which Rennie described as a “significant new phase” for the organization – and is piloting it in over 200 locations in the North West region and Northern Ireland.

While the business is still going to roll it out across its nearly 1,400 branches in the coming year as scheduled, it regards fried chicken as an addition to its core pizza business.

Leadership Comment

Bull, the Domino's chairman, said: “Directors think 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 suitable leader to direct the systematic rollout of that expansion plan.”

Industry Difficulties

Earlier this month, 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 Q3. In the summer, it warned that the food delivery sector had “become tougher” as it blamed weaker consumer confidence in the run-up to the government announcement and higher payroll outlays for below-target performance and a 15 percent decline in interim earnings.

Competitors are also facing challenges. Another major chain disclosed the closure of multiple locations a month ago, after the firm behind its outlets fell into administration.

Health Initiatives

Responding to customer preferences towards healthier eating, Domino's has rolled out lower-calorie items, such as its Thin & Crispy range of pizzas below 400 kcals as well as plant-based and allergy-friendly pizzas. A family-sized pepperoni has 2,311 calories. A family cheese pizza has 2,171 kcal, while a individual has 909 kcal.

Interim Leadership

Frampton has been with Domino's since the recent past, and previously worked for the gaming group a well-known operator. It is understood that she is not seeking to occupy the chief executive role long-term.

Frampton stated: “We have a several active growth and performance initiatives that we will be dedicated to executing at a rapid rate.”

She added these involved further work on the company's logistics network and product development, and its rewards program.

The pizza chain is also without a long-term finance director until the spring, when a new appointee starts from the drinks company a well-known firm. In the meantime, Richard Snow serves as temporary CFO.