Has Pizza Peaked? Domino's Pizza CEO Departs Following Pivot Into Chicken.
The boss of the UK's Domino's Pizza chain who proposed the United Kingdom might have reached peak pizza while diversifying the chain into chicken products has been replaced after tensions with its directors.
Leadership Transition
The former CEO is departing after only 24 months in the top role, and will be replaced on an temporary basis by the organization's chief operating officer, Frampton, while Domino's looks for a permanent CEO.
Rennie, who worked for the company for over 20 years, had aimed to redirect Britain's leading pizza delivery company towards poultry-based products, commenting recently there was not “massive growth” left in the UK's pizza market. He noted poultry was the most rapidly expanding protein in the world.
Board Disagreements
Sources suggest that there was disagreement between Rennie and the board over his focus and management style, although Domino's official statement said he was stepping down “as a joint decision”.
New Product Introduction
In September, the chain unveiled its Chick 'N' Dip product line – which the former chief referred to as a “major strategic shift” for the organization – and is trialling it in over 200 locations in the north-west of England and the province.
While the company is still intending to launch it across its extensive network next year as scheduled, it considers fried chicken as an addition to its core pizza business.
Board Comment
The Domino's chair, the company chairman, said: “We are confident that there are a series of prospects to drive further growth and profitability in Domino's core business. We are focused on finding the ideal CEO to oversee the careful implementation of that development approach.”
Market Challenges
Recently, Domino's, which has a substantial customer base in the British Isles, said transactions fell by 1.5% in the Q3. In August, it warned that the takeaway market had “grown more challenging” as it attributed economic uncertainty in the lead-up to the government announcement and rising wage costs for disappointing revenue and a 15 percent decline in six-month income.
Other pizza operators are also struggling. Another major chain disclosed the closing of 68 restaurants a recently, after the business behind its British operations fell into administration.
Wellness Initiatives
Responding to market shifts towards healthier eating, the company has rolled out lower-calorie products, such as its light base selection of bakes below 400 kcal as well as plant-based and wheat-free options. A family-sized pepperoni has over 2,300 kcal. A family cheese pizza has 2,171 kcal, while a individual has under 1,000 calories.
Interim Leadership
Frampton has been with Domino's since the recent past, and was formerly with the betting firm William Hill. It is believed that she does not want to take on the chief executive role on a full-time basis.
Frampton stated: “Our team has a several current expansion and operational projects that we will be concentrating on implementing at pace.”
She said these involved ongoing development on the organization's procurement system and menu innovation, and its loyalty scheme.
Domino's is also lacking a permanent CFO until 16 March, when Andrea comes aboard from the beverage producer C&C Group. Until then, Richard Snow is temporary CFO.