Has Pizza Peaked? Domino's CEO Steps Down Following Pivot Into Fried Chicken.
A boss of Domino's Pizza Group who indicated the United Kingdom might have hit peak pizza while diversifying the chain into chicken products has been ousted after disagreements with its governing body.
Leadership Change
Rennie is exiting after just two years in charge, and will be replaced on an acting basis by the company's chief operating officer, Nicola Frampton, while the pizza giant looks for a long-term chief.
The outgoing executive, who served at Domino's for a substantial period, had attempted to pivot Britain's leading pizza food delivery firm towards fried chicken, commenting in a recent interview there was not “significant expansion” left in the pizza sector in the UK. He said poultry was the most rapidly expanding protein in the world.
Governance Tensions
Sources suggest that there was friction between Rennie and the directors over his strategy and management style, although the company's announcement said he was leaving “as a joint decision”.
New Brand Launch
In the autumn, the chain unveiled its Chick 'N' Dip product line – which Rennie described as a “significant new phase” for the company – and is trialling it in 210 outlets in the north-west of England and the province.
While the firm is still planning to expand it across its extensive network next year as scheduled, it regards fried chicken as an addition to its main pizza offerings.
Board Statement
The Domino's chair, the Domino's chairman, commented: “Directors think that there are a range of possibilities to enhance value and performance improvement in the main pizza segment. We are prioritizing finding the ideal CEO to lead the careful implementation of that expansion plan.”
Market Difficulties
Recently, the pizza delivery giant, which has millions of users in the UK and Ireland, said sales dipped by one and a half percent in the third quarter. In August, it cautioned that the food delivery sector had “intensified” as it blamed economic uncertainty in the lead-up to the budget and increasing labor expenses for weaker-than-expected sales and a 15 percent decline in interim earnings.
Rival chains are also struggling. Pizza Hut announced the closure of 68 restaurants a month ago, after the business behind its UK venues faced financial collapse.
Wellness Initiatives
Trying to keep up with customer preferences towards balanced diets, the company has rolled out reduced-calorie options, such as its Thin & Crispy selection of bakes below 400 kcal as well as meat-free and gluten-free options. A family-sized pepperoni has 2,311 calories. A big margherita has over 2,100, while a personal has 909 calories.
Acting Leadership
Frampton has been with Domino's since the recent past, and had a background at the gaming group a well-known operator. It is thought that she does not want to occupy the CEO position on a full-time basis.
Frampton stated: “We have a multiple ongoing expansion and efficiency programs that we will be focused on executing at speed.”
She added these included further work on the company's logistics network and product development, and its customer retention initiative.
The pizza chain is also in need of a full-time CFO until the spring, when Andy Andrea starts from the beverage producer C&C Group. For now, Snow acts as interim finance chief.