Pizza Market Saturation? Domino's Chief Executive Steps Down Following Pivot Towards Chicken.
A chief executive of Domino's Pizza Group who proposed the UK might have reached peak pizza while expanding the chain into fried chicken has been replaced after disagreements with its governing body.
Executive Change
Rennie is departing after only 24 months in leadership, and will be succeeded on an interim basis by the organization's chief operating officer, Nicola Frampton, while Domino's seeks a permanent CEO.
The outgoing executive, who served at the company for over 20 years, had aimed to redirect the UK's biggest pizza takeaway chain towards poultry-based products, stating in a recent interview there was not “huge potential” left in the British pizza industry. He said poultry was the most rapidly expanding protein in the world.
Governance Friction
It is understood that there was friction between the CEO and the directors over his focus and direction, although the company's official statement said he was leaving “through mutual consent”.
Recent Brand Introduction
In September, Domino's introduced its Chick 'N' Dip offering – which the former chief referred to as a “major strategic shift” for the company – and is piloting it in 210 outlets in the north-west of England and the province.
While the firm is still going to roll it out across its almost 1,400 stores next year as planned, it views chicken products as complementary to its main pizza offerings.
Board Statement
The Domino's chair, the company chairman, said: “Directors think that there are a range of possibilities to boost expansion and profitability in the main pizza segment. We are concentrating on selecting the ideal CEO to lead the careful implementation of that expansion plan.”
Industry Difficulties
Recently, the pizza delivery giant, which has millions of users in the British Isles, said orders dipped by one and a half percent in the latest quarter. In August, it alerted that the takeaway market had “intensified” as it attributed economic uncertainty in the run-up to the government announcement and higher payroll outlays for disappointing revenue and a 15% drop in half-year profits.
Other pizza operators are also experiencing difficulties. Another major chain revealed the closure of multiple locations a month ago, after the firm behind its UK venues fell into administration.
Wellness Efforts
Adapting to market shifts towards healthier eating, the company has rolled out lower-calorie options, such as its light base selection of bakes below 400 kcals as well as plant-based and wheat-free options. A big pepperoni bake has 2,311 calories. A big margherita has 2,171 kcal, while a individual has under 1,000 calories.
Acting Leadership
Frampton has been with Domino's since the recent past, and was formerly with the betting firm a well-known operator. It is believed that she prefers not to assume the CEO position on a full-time basis.
Frampton stated: “The company has a several active growth and efficiency programs that we will be concentrating on executing at speed.”
She added these involved additional efforts on the organization's procurement system and menu innovation, and its rewards program.
The pizza chain is also in need of a full-time chief financial officer until 16 March, when a new appointee joins from the drinks company a well-known firm. Until then, Snow serves as acting financial officer.