Peak Pizza? Domino's CEO Departs Following Pivot Towards Fried Chicken.
A boss of the UK's Domino's Pizza chain who suggested the UK might have reached pizza saturation while expanding the franchise into chicken products has been replaced after tensions with its directors.
Leadership Shake-Up
Rennie is leaving after only 24 months in charge, and will be succeeded on an interim basis by the company's chief operating officer, Nicola Frampton, while Domino's seeks a permanent CEO.
Rennie, who was with the company for more than two decades, had aimed to shift the UK's largest pizza takeaway chain towards poultry-based products, commenting in a recent interview there was not “massive growth” left in the British pizza industry. He observed poultry was the most rapidly expanding protein in the globe.
Board Disagreements
Sources suggest that there was friction between Rennie and the directors over his strategy and management style, although Domino's release said he was departing “through mutual consent”.
New Brand Introduction
In the autumn, the chain unveiled its poultry offering – which the former chief called a “major strategic shift” for the organization – and is trialling it in select stores in the North West region and Northern Ireland.
While the firm is still planning to expand it across its extensive network in the coming year as planned, it views chicken products as a supplement for its main pizza offerings.
Board Statement
The Domino's chair, the Domino's chairman, stated: “Directors think that there are a range of possibilities to enhance value and value creation in our primary operations. We are prioritizing identifying the right chief executive to direct the systematic rollout of that expansion plan.”
Industry Difficulties
Recently, the pizza delivery giant, which has millions of users in the UK and Ireland, said sales dipped by 1.5% in the latest quarter. In August, it alerted that the quick-service industry had “intensified” as it attributed economic uncertainty in the lead-up to the government announcement and increasing labor expenses for weaker-than-expected sales and a 15 percent decline in six-month income.
Other pizza operators are also facing challenges. Pizza Hut announced the closing of 68 restaurants a month ago, after the business behind its outlets faced financial collapse.
Wellness Efforts
Trying to keep up with market shifts towards balanced diets, Domino's has launched reduced-calorie products, such as its light base line of bakes below 400 calories as well as meat-free and wheat-free options. A large pepperoni pizza has over 2,300 kcal. A family cheese pizza has 2,171 kcal, while a personal has 909 kcal.
Acting Management
Frampton has been with the company since the recent past, and was formerly with the gaming group a well-known operator. It is understood that she does not want to assume the top job permanently.
Frampton stated: “Our team has a multiple ongoing growth and efficiency programs that we will be focused on executing at pace.”
Frampton noted these comprised further work on the organization's supply chain and product development, and its rewards program.
The pizza chain is also in need of a permanent finance director until March 16, when Andy Andrea comes aboard from the drinks company C&C Group. For now, Richard Snow serves as interim finance chief.