Peak Pizza? Domino's Pizza Leader Exits Following Shift Towards Fried Chicken.
The head of the UK's Domino's Pizza chain who indicated the UK might have hit pizza saturation while diversifying the company into poultry items has been removed after disagreements with its board.
Leadership Change
Rennie is departing after a brief tenure in charge, and will be replaced on an interim basis by the company's chief operating officer, Nicola Frampton, while the pizza giant looks for a permanent CEO.
Rennie, who was with Domino's for a substantial period, had attempted to pivot Britain's largest pizza delivery company towards fried chicken, stating in a recent interview there was not “massive growth” left in the UK's pizza market. He noted chicken was the most rapidly expanding protein in the world.
Board Tensions
Reports indicate that there was tension between the CEO and the board over his approach and business vision, although Domino's announcement said he was departing “by mutual agreement”.
Recent Brand Introduction
In September, the chain unveiled its chicken-focused product line – which the former chief referred to as a “significant new phase” for the company – and is piloting it in 210 outlets in the North West region and the province.
While the business is still going to roll it out across its extensive network next year as planned, it views chicken products as an addition to its primary pizza operations.
Leadership Statement
Ian Bull, the company chairman, stated: “The board believes that there are a number of opportunities to boost expansion and performance improvement in Domino's core business. We are concentrating on finding the suitable leader to oversee the careful implementation of that development approach.”
Industry Difficulties
Recently, the pizza delivery giant, which has a substantial customer base in the British Isles, said orders declined by one and a half percent in the Q3. In the summer, it warned that the takeaway market had “intensified” as it attributed weaker consumer confidence in the run-up to the budget and increasing labor expenses for below-target performance and a 15% drop in half-year profits.
Competitors are also facing challenges. Another major chain announced the closure of multiple locations a last month, after the business behind its British operations fell into administration.
Wellness Initiatives
Adapting to consumer trends towards balanced diets, Domino's has introduced lower-calorie products, such as its Thin & Crispy line of pizzas below 400 kcals as well as vegan and wheat-free pizzas. A large pepperoni pizza has 2,311 calories. A family cheese pizza has over 2,100, while a individual has 909 calories.
Acting Management
Nicola Frampton has been with Domino's since the recent past, and had a background at the betting firm a well-known operator. It is believed that she prefers not to assume the top job on a full-time basis.
She commented: “Our team has a several ongoing development and performance initiatives that we will be focused on executing at pace.”
Frampton noted these involved ongoing development on the company's procurement system and new item creation, and its loyalty scheme.
Domino's is also without a long-term CFO until the spring, when Andy Andrea starts from the drinks company C&C Group. In the meantime, Richard Snow acts as temporary CFO.