Has Pizza Peaked? Domino's Chief Executive Exits Following Pivot Into Chicken.
A boss of the UK's Domino's Pizza chain who indicated the UK might have reached pizza saturation while diversifying the company into fried chicken has been removed after tensions with its board.
Executive Shake-Up
Rennie is departing after a brief tenure in leadership, and will be replaced on an interim basis by the organization's operations head, Nicola Frampton, while the pizza giant seeks a long-term chief.
The outgoing executive, who served at the company for more than two decades, had sought to pivot the UK's leading pizza takeaway chain towards poultry-based products, remarking recently there was not “significant expansion” left in the UK's pizza market. He noted chicken was the most rapidly expanding protein in the international market.
Board Disagreements
It is understood that there was tension between Rennie and the governance team over his approach and business vision, although Domino's release said he was departing “as a joint decision”.
New Product Introduction
In the autumn, the chain introduced its poultry offering – which Rennie called a “significant new phase” for the organization – and is trialling it in select stores in the north-west of England and Northern Ireland.
While the company is still intending to launch it across its almost 1,400 stores next year as planned, it considers chicken products as an addition to its primary pizza operations.
Board Statement
Ian Bull, the Domino's chairman, said: “Directors think that there are a series of prospects to drive further growth and value creation in the main pizza segment. We are concentrating on finding the right chief executive to oversee the systematic rollout of that development approach.”
Market Challenges
Earlier this month, the pizza delivery giant, which has a substantial customer base in the British Isles, said transactions dipped by 1.5 percent in the latest quarter. In the summer, it alerted that the food delivery sector had “become tougher” as it blamed reduced spending in the run-up to the government announcement and increasing labor expenses for disappointing revenue and a 15 percent decline in interim earnings.
Competitors are also struggling. Another major chain revealed the shutting of dozens of outlets a month ago, after the business behind its British operations fell into administration.
Health Initiatives
Trying to keep up with customer preferences towards healthier eating, Domino's has introduced light items, such as its thin-crust range of bakes below 400 calories as well as meat-free and gluten-free options. A big pepperoni bake has over 2,300 kcal. A family cheese pizza has 2,171, while a small has 909 kcal.
Acting Management
Nicola Frampton has been with the company since the recent past, and previously worked for the gambling company a well-known operator. It is thought that she does not want to take on the top job permanently.
She said: “Our team has a several active development and operational projects that we will be focused on carrying out at pace.”
Frampton noted these comprised ongoing development on the company's logistics network and product development, and its rewards program.
The pizza chain is also lacking a full-time chief financial officer until 16 March, when Andrea comes aboard from the drinks company a well-known firm. In the meantime, Richard Snow serves as acting financial officer.