Peak Pizza? Domino's Leader Steps Down After Pivot Towards Fried Chicken.
The boss of the UK's Domino's Pizza chain who suggested the United Kingdom might have reached maximum pizza demand while expanding the franchise into chicken products has been replaced after disagreements with its governing body.
Leadership Shake-Up
Rennie is departing after only 24 months in leadership, and will be replaced on an interim basis by the organization's chief operating officer, Nicola Frampton, while the pizza giant seeks a permanent CEO.
The outgoing executive, who was with the company for over 20 years, had sought to shift Britain's biggest pizza food delivery firm towards poultry-based products, commenting recently there was not “massive growth” left in the UK's pizza market. He noted chicken was the fastest-growing protein in the international market.
Governance Friction
It is understood that there was disagreement between the CEO and the governance team over his focus and direction, although Domino's announcement said he was departing “as a joint decision”.
New Brand Launch
In September, Domino's launched its poultry offering – which the former chief called a “major strategic shift” for the organization – and is trialling it in over 200 locations in the North West region and the province.
While the business is still planning to expand it across its extensive network next year as intended, it views chicken products as a supplement for its primary pizza operations.
Leadership Comment
Bull, the company chairman, said: “The board believes that there are a series of prospects to enhance value and value creation in Domino's core business. We are concentrating on identifying the ideal CEO to direct the disciplined execution of that development approach.”
Market Challenges
Recently, Domino's, which has 13 million customers in the UK and Ireland, said sales fell by 1.5 percent in the third quarter. In the summer, it alerted that the food delivery sector had “grown more challenging” as it blamed reduced spending in the run-up to the government announcement and higher payroll outlays for below-target performance and a 15 percent decline in interim earnings.
Other pizza operators are also experiencing difficulties. Another major chain disclosed the closing of dozens of outlets a recently, after the firm behind its UK venues faced financial collapse.
Wellness Initiatives
Responding to customer preferences towards healthier eating, the company has rolled out light items, such as its light base line of pizzas below 400 kcal as well as plant-based and wheat-free pizzas. A big pepperoni bake has 2,311 kcals. A family cheese pizza has over 2,100, while a small has 909 kcal.
Acting Management
The interim chief has been with Domino's since the recent past, and was formerly with the betting firm William Hill. It is understood that she is not seeking to occupy the top job long-term.
Frampton stated: “The company has a several ongoing development and performance initiatives that we will be focused on implementing at a rapid rate.”
She said these included ongoing development on the company's supply chain and product development, and its customer retention initiative.
The pizza chain is also lacking a permanent finance director until 16 March, when a new appointee joins from the beverage producer C&C Group. In the meantime, Richard Snow is acting financial officer.