Peak Pizza? Domino's Pizza Leader Steps Down Following Move Into Chicken.
A head of Domino's Pizza Group who proposed the UK might have reached pizza saturation while broadening the franchise into chicken products has been replaced after conflicts with its directors.
Executive Change
Rennie is leaving after just two years in leadership, and will be succeeded on an acting basis by the organization's chief operating officer, Frampton, while the pizza giant seeks a permanent CEO.
Rennie, who served at the company for a substantial period, had sought to shift Britain's biggest pizza delivery company towards chicken offerings, stating earlier this month there was not “massive growth” left in the British pizza industry. He noted chicken was the quickest rising protein in the globe.
Board Tensions
It is understood that there was friction between the CEO and the directors over his strategy and business vision, although the company's announcement said he was stepping down “through mutual consent”.
New Product Launch
In the autumn, the chain introduced its chicken-focused brand – which the former chief called a “major strategic shift” for the group – and is piloting it in over 200 locations in the North West region and Northern Ireland.
While the firm is still intending to launch it across its extensive network in the coming year as intended, it considers chicken products as complementary to its core pizza business.
Leadership Comment
Ian Bull, the company chair, commented: “We are confident that there are a series of prospects to drive further growth and performance improvement in the main pizza segment. We are prioritizing finding the suitable leader to lead the careful implementation of that growth strategy.”
Market Difficulties
Recently, Domino's, which has 13 million customers in the British Isles, said orders fell by 1.5% in the latest quarter. In August, it warned that the takeaway market had “become tougher” as it blamed economic uncertainty in the period before the budget and increasing labor expenses for below-target performance and a 15 percent decline in half-year profits.
Rival chains are also struggling. Pizza Hut disclosed the closing of dozens of outlets a month ago, after the company behind its UK venues entered insolvency.
Health Efforts
Trying to keep up with market shifts towards balanced diets, Domino's has launched reduced-calorie products, such as its thin-crust selection of bakes below 400 kcal as well as plant-based and wheat-free options. A family-sized pepperoni has 2,311 kcals. A large cheese and tomato pizza has 2,171, while a individual has under 1,000 calories.
Interim Management
Nicola Frampton has been with Domino's since the recent past, and had a background at the gambling company William Hill. It is believed that she prefers not to take on the top job on a full-time basis.
She commented: “Our team has a multiple active development and performance initiatives that we will be concentrating on executing at a rapid rate.”
She added these included ongoing development on the organization's supply chain and menu innovation, and its loyalty scheme.
The pizza chain is also in need of a full-time finance director until the spring, when Andy Andrea joins from the beverage producer C&C Group. In the meantime, Richard Snow acts as interim finance chief.