Has Pizza Peaked? Domino's Chief Executive Steps Down After Shift Into Fried Chicken.
A chief executive of Domino's Pizza Group who proposed the UK might have reached peak pizza while expanding the company into poultry items has been removed after conflicts with its directors.
Executive Shake-Up
Andrew Rennie is leaving after a brief tenure in the top role, and will be succeeded on an temporary basis by the company's chief operating officer, Frampton, while Domino's looks for a permanent CEO.
Rennie, who served at the company for more than two decades, had aimed to redirect the UK's leading pizza takeaway chain towards chicken offerings, remarking earlier this month there was not “significant expansion” left in the British pizza industry. He said poultry was the fastest-growing food category in the globe.
Governance Disagreements
Reports indicate that there was tension between the CEO and the directors over his strategy and direction, although the company's release said he was leaving “as a joint decision”.
New Brand Introduction
In September, the chain unveiled its chicken-focused product line – which the former chief referred to as a “major strategic shift” for the group – and is testing it in 210 outlets in the North West region and the province.
While the company is still going to roll it out across its almost 1,400 stores next year as planned, it views fried chicken as a supplement for its core pizza business.
Leadership Comment
Ian Bull, the company chair, said: “The board believes that there are a series of prospects to enhance value and performance improvement in the main pizza segment. We are prioritizing finding the right chief executive to lead the disciplined execution of that development approach.”
Industry Challenges
Recently, the pizza delivery giant, which has 13 million customers in the UK and Ireland, said sales dipped by 1.5% in the latest quarter. In the summer, it alerted that the takeaway market had “intensified” as it attributed weaker consumer confidence in the run-up to the government announcement and rising wage costs for weaker-than-expected sales and a 15% drop in half-year profits.
Other pizza operators are also facing challenges. Pizza Hut revealed the closing of 68 restaurants a recently, after the business behind its UK venues faced financial collapse.
Health Initiatives
Adapting to customer preferences towards better nutrition, the company has rolled out lower-calorie items, such as its thin-crust selection of bakes below 400 kcals as well as meat-free and allergy-friendly options. A large pepperoni pizza has 2,311 calories. A big margherita has over 2,100, while a individual has 909 calories.
Acting Management
The interim chief has been with Domino's since the recent past, and was formerly with the betting firm a well-known operator. It is thought that she is not seeking to take on the top job on a full-time basis.
She commented: “We have a multiple active expansion and operational projects that we will be dedicated to executing at speed.”
Frampton noted these comprised further work on the company's procurement system and menu innovation, and its loyalty scheme.
The pizza chain is also without a permanent finance director until the spring, when Andrea starts from the drinks company C&C Group. For now, Snow acts as temporary CFO.
