Peak Pizza? Domino's CEO Exits Following Shift Towards Fried Chicken.
A boss of Domino's Pizza Group who proposed the United Kingdom might have reached pizza saturation while broadening the company into fried chicken has been removed after conflicts with its directors.
Executive Change
The former CEO is departing after only 24 months in charge, and will be succeeded on an acting basis by the organization's chief operating officer, Nicola Frampton, while the pizza giant seeks a permanent CEO.
The outgoing executive, who worked for Domino's for more than two decades, had sought to redirect Britain's biggest pizza food delivery firm towards poultry-based products, stating recently there was not “massive growth” left in the pizza sector in the UK. He said poultry was the fastest-growing food category in the globe.
Board Tensions
Sources suggest that there was tension between Rennie and the board over his focus and business vision, although Domino's announcement said he was leaving “as a joint decision”.
New Brand Launch
In September, Domino's introduced its chicken-focused offering – which the former chief described as a “bold new chapter” for the group – and is trialling it in 210 outlets in the North West region and the province.
While the business is still planning to expand it across its almost 1,400 stores in the coming year as intended, it views chicken products as a supplement for its core pizza business.
Leadership Comment
Bull, the Domino's chair, said: “Directors think that there are a number of opportunities to drive further growth and performance improvement in our primary operations. We are prioritizing identifying the ideal CEO to lead the disciplined execution of that growth strategy.”
Market Challenges
In the latest update, the pizza delivery giant, which has 13 million customers in the UK and Ireland, said orders fell by 1.5 percent in the third quarter. In August, it cautioned that the quick-service industry had “grown more challenging” as it blamed economic uncertainty in the period before the budget and higher payroll outlays for weaker-than-expected sales and a 15% drop in interim earnings.
Competitors are also struggling. Pizza Hut announced the closing of multiple locations a month ago, after the firm behind its UK venues faced financial collapse.
Wellness Initiatives
Responding to customer preferences towards balanced diets, the company has introduced lower-calorie products, such as its light base range of pizzas below 400 kcal as well as vegan and allergy-friendly pizzas. A family-sized pepperoni has 2,311 calories. A big margherita has over 2,100, while a small has 909 calories.
Interim Leadership
Frampton has been with Domino's since the recent past, and was formerly with the gambling company William Hill. It is believed that she does not want to assume the chief executive role permanently.
She said: “The company has a multiple ongoing growth and performance initiatives that we will be dedicated to executing at speed.”
She said these comprised ongoing development on the organization's supply chain and menu innovation, and its loyalty scheme.
The pizza chain is also lacking a long-term finance director until 16 March, when Andrea joins from the Irish cider and beer maker a well-known firm. In the meantime, Richard Snow acts as temporary CFO.