Has Pizza Peaked? Domino's Pizza Leader Departs After Move Towards Fried Chicken.
The head of Domino's Pizza Group who indicated the UK might have hit maximum pizza demand while expanding the franchise into poultry items has been ousted after conflicts with its directors.
Executive Transition
The former CEO is leaving after just two years in charge, and will be replaced on an interim basis by the company's chief operating officer, Frampton, while the pizza giant searches for a long-term chief.
Rennie, who was with Domino's for over 20 years, had attempted to pivot the UK's largest pizza takeaway chain towards fried chicken, commenting recently there was not “huge potential” left in the British pizza industry. He observed chicken was the quickest rising food category in the globe.
Governance Tensions
It is understood that there was tension between the CEO and the board over his focus and management style, although the company's official statement said he was departing “through mutual consent”.
Recent Product Introduction
In September, the chain unveiled its poultry offering – which Rennie described as a “significant new phase” for the company – and is trialling it in over 200 locations in the north-west of England and the province.
While the company is still going to roll it out across its nearly 1,400 branches next year as intended, it considers chicken products as an addition to its core pizza business.
Board Statement
Ian Bull, the company chair, commented: “We are confident that there are a series of prospects to boost expansion and profitability in Domino's core business. We are concentrating on identifying the ideal CEO to oversee the careful implementation of that expansion plan.”
Industry Challenges
Recently, the pizza delivery giant, which has 13 million customers in the UK and Ireland, said orders declined by 1.5 percent in the latest quarter. In the summer, it cautioned that the takeaway market had “grown more challenging” as it attributed weaker consumer confidence in the period before the government announcement and higher payroll outlays for weaker-than-expected sales and a significant fall in half-year profits.
Competitors are also struggling. Another major chain announced the shutting of 68 restaurants a last month, after the company behind its UK venues entered insolvency.
Wellness Efforts
Adapting to market shifts towards better nutrition, Domino's has introduced light items, such as its light base line of pizzas below 400 kcals as well as vegan and wheat-free options. A family-sized pepperoni has 2,311 calories. A big margherita has 2,171 kcal, while a individual has under 1,000 calories.
Interim Leadership
Frampton has been with the company since the recent past, and previously worked for the gaming group William Hill. It is believed that she prefers not to take on the top job permanently.
She said: “We have a several active development and performance initiatives that we will be concentrating on executing at speed.”
She added these included additional efforts on the company's procurement system and new item creation, and its loyalty scheme.
The pizza chain is also without a permanent CFO until 16 March, when Andrea joins from the beverage producer a well-known firm. In the meantime, Snow acts as temporary CFO.