Pizza Market Saturation? Domino's Pizza Leader Departs Following Shift Into Chicken.
A boss of the UK's Domino's Pizza chain who suggested the United Kingdom might have hit maximum pizza demand while broadening the chain into chicken products has been ousted after disagreements with its board.
Executive Change
Rennie is departing after only 24 months in leadership, and will be succeeded on an acting basis by the organization's chief operating officer, Frampton, while Domino's seeks a new leader.
The outgoing executive, who served at the company for more than two decades, had sought to shift the UK's leading pizza takeaway chain towards chicken offerings, remarking recently there was not “significant expansion” left in the pizza sector in the UK. He noted chicken was the quickest rising food category in the world.
Board Disagreements
It is understood that there was tension between the CEO and the directors over his approach and direction, although the company's release said he was departing “as a joint decision”.
Recent Brand Launch
In the autumn, the chain unveiled its Chick 'N' Dip brand – which Rennie called a “significant new phase” for the organization – and is piloting it in 210 outlets in the north-west of England and the province.
While the company is still going to roll it out across its extensive network in the coming year as intended, it considers fried chicken as complementary to its primary pizza operations.
Leadership Comment
The Domino's chair, the Domino's chairman, commented: “We are confident that there are a range of possibilities to boost expansion and value creation in Domino's core business. We are concentrating on finding the ideal CEO to lead the careful implementation of that development approach.”
Market Challenges
In the latest update, Domino's, which has a substantial customer base in the UK and Ireland, said orders fell by 1.5 percent in the latest quarter. In August, it alerted that the takeaway market had “intensified” as it attributed economic uncertainty in the lead-up to the government announcement and rising wage costs for below-target performance and a 15 percent decline in half-year profits.
Competitors are also struggling. Pizza Hut disclosed the closing of multiple locations a recently, after the company behind its British operations fell into administration.
Wellness Efforts
Responding to consumer trends towards better nutrition, Domino's has rolled out lower-calorie items, such as its light base line of bakes below 400 calories as well as plant-based and allergy-friendly options. A large pepperoni pizza has 2,311 kcals. A family cheese pizza has 2,171 kcal, while a small has 909 calories.
Acting Management
Frampton has been with the company since the recent past, and was formerly with the gambling company William Hill. It is thought that she prefers not to occupy the top job on a full-time basis.
She said: “Our team has a number of ongoing development and efficiency programs that we will be concentrating on executing at a rapid rate.”
Frampton noted these comprised additional efforts on the company's procurement system and new item creation, and its rewards program.
Domino's is also in need of a permanent CFO until 16 March, when Andy Andrea comes aboard from the Irish cider and beer maker a well-known firm. Until then, Snow serves as temporary CFO.