Has Pizza Peaked? Domino's Pizza CEO Steps Down Following Move Towards Fried Chicken.

A chief executive of the UK's Domino's Pizza chain who indicated the United Kingdom might have reached maximum pizza demand while expanding the company into fried chicken has been ousted after disagreements with its governing body.

Leadership Shake-Up

The former CEO is departing after a brief tenure in leadership, and will be replaced on an temporary basis by the company's chief operating officer, Frampton, while the pizza giant seeks a new leader.

Rennie, who served at Domino's for a substantial period, had aimed to redirect the UK's biggest pizza delivery company towards poultry-based products, remarking earlier this month there was not “huge potential” left in the UK's pizza market. He said poultry was the quickest rising menu item in the globe.

Board Friction

It is understood that there was friction between the CEO and the governance team over his focus and management style, although the company's official statement said he was departing “through mutual consent”.

New Product Launch

In September, Domino's unveiled its chicken-focused offering – which Rennie called a “major strategic shift” for the company – and is trialling it in over 200 locations in the north-west of England and Northern Ireland.

While the business is still planning to expand it across its almost 1,400 stores next year as scheduled, it considers fried chicken as a supplement for its core pizza business.

Leadership Statement

Bull, the company chair, stated: “Directors think that there are a series of prospects to boost expansion and value creation in the main pizza segment. We are focused on selecting the right chief executive to direct the disciplined execution of that expansion plan.”

Market Challenges

Earlier this month, Domino's, which has millions of users in the UK and Ireland, said sales dipped by 1.5% in the latest quarter. In the summer, it warned that the food delivery sector had “intensified” as it attributed economic uncertainty in the period before the government announcement and higher payroll outlays for below-target performance and a 15% drop in six-month income.

Other pizza operators are also experiencing difficulties. Another major chain revealed the closure of multiple locations a last month, after the firm behind its British operations faced financial collapse.

Health Efforts

Trying to keep up with customer preferences towards healthier eating, the company has launched light products, such as its light base range of pizzas below 400 kcal as well as meat-free and allergy-friendly options. A big pepperoni bake has 2,311 calories. A family cheese pizza has 2,171, while a personal has under 1,000 calories.

Interim Management

Frampton has been with Domino's since the recent past, and had a background at the gaming group William Hill. It is believed that she prefers not to assume the chief executive role on a full-time basis.

She commented: “The company has a several active expansion and efficiency programs that we will be dedicated to implementing at a rapid rate.”

She said these involved additional efforts on the company's procurement system and new item creation, and its rewards program.

Domino's is also without a long-term finance director until the spring, when Andy Andrea joins from the drinks company C&C Group. In the meantime, Snow serves as interim finance chief.