Has Pizza Peaked? Domino's Pizza Leader Departs After Move Into Chicken.
A boss of Domino's Pizza Group who proposed the United Kingdom might have reached peak pizza while expanding the chain into chicken products has been ousted after tensions with its governing body.
Executive Transition
Rennie is leaving after only 24 months in leadership, and will be succeeded on an interim basis by the organization's operations head, Frampton, while the pizza giant searches for a permanent CEO.
Rennie, who was with the company for more than two decades, had sought to pivot Britain's largest pizza delivery company towards chicken offerings, commenting earlier this month there was not “huge potential” left in the British pizza industry. He observed chicken was the most rapidly expanding menu item in the world.
Governance Disagreements
Reports indicate that there was friction between the CEO and the board over his approach and direction, although the company's official statement said he was leaving “through mutual consent”.
Recent Brand Launch
In September, the chain launched its Chick 'N' Dip offering – which Rennie referred to as a “bold new chapter” for the company – and is testing it in 210 outlets in the north-west of England and Northern Ireland.
While the company is still planning to expand it across its nearly 1,400 branches next year as scheduled, it views fried chicken as complementary to its primary pizza operations.
Leadership Comment
Bull, the company chairman, stated: “Directors think that there are a range of possibilities to enhance value and value creation in Domino's core business. We are focused on identifying the ideal CEO to direct the careful implementation of that development approach.”
Market Challenges
In the latest update, Domino's, which has millions of users in the UK and Ireland, said orders declined by one and a half percent in the latest quarter. In the summer, it cautioned that the takeaway market had “grown more challenging” as it blamed economic uncertainty in the lead-up to the budget and higher payroll outlays for weaker-than-expected sales and a 15 percent decline in interim earnings.
Rival chains are also struggling. Another major chain revealed the shutting of multiple locations a last month, after the company behind its outlets fell into administration.
Wellness Efforts
Responding to customer preferences towards healthier eating, Domino's has introduced light options, such as its Thin & Crispy range of bakes below 400 kcals as well as meat-free and wheat-free options. A family-sized pepperoni has 2,311 kcals. A big margherita has 2,171, while a small has 909 kcal.
Interim Leadership
Frampton has been with Domino's since the recent past, and was formerly with the gambling company a well-known operator. It is understood that she prefers not to occupy the top job permanently.
She commented: “We have a several active development and operational projects that we will be focused on implementing at a rapid rate.”
She added these comprised additional efforts on the organization's procurement system and menu innovation, and its loyalty scheme.
The pizza chain is also in need of a full-time finance director until March 16, when a new appointee joins from the beverage producer a well-known firm. In the meantime, Snow acts as interim finance chief.