Has Pizza Peaked? Domino's Pizza Chief Executive Exits Following Shift Into Fried Chicken.
The head of the UK's Domino's Pizza chain who indicated the UK might have hit maximum pizza demand while broadening the chain into chicken products has been removed after disagreements with its governing body.
Leadership Change
Andrew Rennie is exiting after a brief tenure in charge, and will be succeeded on an temporary basis by the company's chief operating officer, Nicola Frampton, while Domino's searches for a permanent CEO.
The outgoing executive, who served at the company for over 20 years, had sought to redirect Britain's largest pizza takeaway chain towards fried chicken, stating earlier this month there was not “significant expansion” left in the pizza sector in the UK. He noted poultry was the fastest-growing menu item in the world.
Governance Friction
Sources suggest that there was friction between Rennie and the board over his approach and direction, although the company's announcement said he was stepping down “through mutual consent”.
Recent Product Launch
In September, the chain introduced its poultry brand – which Rennie called a “bold new chapter” for the organization – and is testing it in select stores in the north-west of England and the province.
While the firm is still intending to launch it across its nearly 1,400 branches next year as planned, it considers chicken products as an addition to its primary pizza operations.
Board Statement
Ian Bull, the Domino's chair, commented: “The board believes that there are a series of prospects to boost expansion and performance improvement in Domino's core business. We are concentrating on identifying the ideal CEO to lead the disciplined execution of that development approach.”
Market Difficulties
Earlier this month, Domino's, which has millions of users in the British Isles, said sales fell by 1.5 percent in the latest quarter. In August, it cautioned that the takeaway market had “intensified” as it attributed economic uncertainty in the run-up to the government announcement and higher payroll outlays for weaker-than-expected sales and a 15 percent decline in six-month income.
Other pizza operators are also struggling. Pizza Hut disclosed the closing of 68 restaurants a recently, after the business behind its outlets faced financial collapse.
Health Initiatives
Adapting to consumer trends towards better nutrition, Domino's has launched light products, such as its thin-crust line of bakes below 400 kcals as well as meat-free and wheat-free options. A family-sized pepperoni has 2,311 calories. A family cheese pizza has over 2,100, while a individual has 909 calories.
Interim Leadership
Nicola Frampton has been with Domino's since the recent past, and was formerly with the betting firm a well-known operator. It is understood that she prefers not to assume the top job permanently.
She commented: “We have a multiple current development and efficiency programs that we will be focused on executing at pace.”
She said these involved additional efforts on the company's supply chain and product development, and its loyalty scheme.
Domino's is also lacking a long-term CFO until March 16, when Andy Andrea starts from the drinks company C&C Group. Until then, Richard Snow serves as temporary CFO.