Peak Pizza? Domino's Pizza Leader Exits After Pivot Into Chicken.
The head of Domino's Pizza Group who suggested the UK might have reached maximum pizza demand while broadening the franchise into fried chicken has been replaced after tensions with its governing body.
Leadership Change
The former CEO is leaving after just two years in charge, and will be replaced on an interim basis by the organization's chief operating officer, Frampton, while Domino's seeks a new leader.
Rennie, who worked for Domino's for more than two decades, had attempted to pivot the UK's largest pizza delivery company towards poultry-based products, commenting in a recent interview there was not “significant expansion” left in the UK's pizza market. He observed poultry was the quickest rising menu item in the globe.
Board Friction
Sources suggest that there was disagreement between Rennie and the board over his focus and business vision, although the company's release said he was leaving “by mutual agreement”.
Recent Product Introduction
In the autumn, the chain introduced its chicken-focused product line – which the former chief called a “bold new chapter” for the group – and is piloting it in select stores in the north-west of England and the province.
While the firm is still planning to expand it across its almost 1,400 stores in the coming year as intended, it regards fried chicken as complementary to its primary pizza operations.
Leadership Comment
The Domino's chair, the Domino's chairman, commented: “The board believes that there are a range of possibilities to drive further growth and profitability in our primary operations. We are prioritizing selecting the right chief executive to oversee the disciplined execution of that expansion plan.”
Market Difficulties
Earlier this month, Domino's, which has a substantial customer base in the British Isles, said transactions fell by one and a half percent in the third quarter. In August, it warned that the takeaway market had “become tougher” as it blamed reduced spending in the run-up to the government announcement and rising wage costs for below-target performance and a 15 percent decline in half-year profits.
Competitors are also struggling. Another major chain revealed the shutting of multiple locations a recently, after the firm behind its UK venues faced financial collapse.
Wellness Initiatives
Trying to keep up with consumer trends towards healthier eating, the company has rolled out light items, such as its light base selection of pizzas below 400 calories as well as meat-free and gluten-free pizzas. A family-sized pepperoni has 2,311 calories. A family cheese pizza has 2,171, while a small has 909 calories.
Acting Leadership
Nicola Frampton has been with the company since the recent past, and previously worked for the betting firm a well-known operator. It is believed that she does not want to take on the chief executive role on a full-time basis.
She commented: “The company has a number of active expansion and performance initiatives that we will be concentrating on executing at pace.”
She added these involved ongoing development on the organization's procurement system and new item creation, and its rewards program.
Domino's is also without a long-term CFO until 16 March, when Andy Andrea joins from the Irish cider and beer maker C&C Group. For now, Snow is temporary CFO.
