Pizza Market Saturation? Domino's Pizza Leader Exits Following Shift Towards Chicken.
The chief executive of Domino's Pizza Group who suggested the United Kingdom might have reached peak pizza while expanding the chain into chicken products has been removed after conflicts with its governing body.
Executive Change
Andrew Rennie is leaving after a brief tenure in leadership, and will be replaced on an temporary basis by the organization's operations head, Frampton, while the pizza giant searches for a long-term chief.
The outgoing executive, who was with the company for more than two decades, had sought to pivot the UK's leading pizza food delivery firm towards poultry-based products, commenting in a recent interview there was not “massive growth” left in the pizza sector in the UK. He said chicken was the most rapidly expanding menu item in the world.
Board Friction
Sources suggest that there was friction between the CEO and the board over his strategy and direction, although the company's announcement said he was departing “as a joint decision”.
New Brand Launch
In the autumn, Domino's launched its poultry offering – which the former chief referred to as a “significant new phase” for the organization – and is testing it in select stores in the North West region and Northern Ireland.
While the company is still intending to launch it across its nearly 1,400 branches next year as intended, it considers fried chicken as a supplement for its main pizza offerings.
Board Statement
The Domino's chair, the company chair, said: “The board believes that there are a series of prospects to boost expansion and profitability in the main pizza segment. We are focused on identifying the right chief executive to lead the systematic rollout of that growth strategy.”
Industry Difficulties
Recently, Domino's, which has 13 million customers in the British Isles, said sales fell by 1.5% in the third quarter. In the summer, it alerted that the quick-service industry had “become tougher” as it blamed economic uncertainty in the run-up to the government announcement and rising wage costs for weaker-than-expected sales and a 15 percent decline in six-month income.
Rival chains are also experiencing difficulties. Another major chain announced the closing of dozens of outlets a month ago, after the company behind its UK venues entered insolvency.
Health Efforts
Trying to keep up with customer preferences towards balanced diets, Domino's has launched light products, such as its thin-crust selection of pizzas below 400 calories as well as meat-free and wheat-free options. A family-sized pepperoni has 2,311 calories. A large cheese and tomato pizza has 2,171, while a small has under 1,000 calories.
Acting Management
The interim chief has been with Domino's since the recent past, and was formerly with the gambling company William Hill. It is believed that she does not want to occupy the chief executive role long-term.
Frampton stated: “We have a number of active growth and efficiency programs that we will be focused on carrying out at speed.”
She said these involved ongoing development on the company's supply chain and menu innovation, and its rewards program.
Domino's is also lacking a permanent chief financial officer until March 16, when a new appointee joins from the drinks company C&C Group. In the meantime, Richard Snow serves as interim finance chief.