Peak Pizza? Domino's Leader Steps Down Following Pivot Towards Chicken.
A boss of Domino's Pizza Group who indicated the United Kingdom might have reached maximum pizza demand while expanding the chain into fried chicken has been replaced after tensions with its board.
Leadership Transition
Andrew Rennie is exiting after only 24 months in charge, and will be succeeded on an temporary basis by the organization's chief operating officer, Nicola Frampton, while the pizza giant looks for a long-term chief.
The outgoing executive, who worked for the company for more than two decades, had aimed to pivot Britain's biggest pizza food delivery firm towards fried chicken, commenting earlier this month there was not “massive growth” left in the UK's pizza market. He observed chicken was the fastest-growing protein in the international market.
Governance Tensions
It is understood that there was tension between Rennie and the board over his focus and management style, although Domino's official statement said he was leaving “by mutual agreement”.
Recent Product Launch
In September, the chain introduced its poultry brand – which the former chief called a “major strategic shift” for the company – and is trialling it in 210 outlets 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 planned, it views chicken products as an addition to its core pizza business.
Board Comment
The Domino's chair, the Domino's chair, said: “We are confident that there are a number of opportunities to boost expansion and performance improvement in the main pizza segment. We are concentrating on selecting the suitable leader to direct the disciplined execution of that growth strategy.”
Market Difficulties
Earlier this month, the pizza delivery giant, which has a substantial customer base in the UK and Ireland, said orders fell by one and a half percent in the third quarter. In the summer, it warned that the food delivery sector had “intensified” as it blamed reduced spending in the lead-up to the budget and increasing labor expenses for weaker-than-expected sales and a 15% drop in interim earnings.
Other pizza operators are also facing challenges. Pizza Hut disclosed the closing of multiple locations a last month, after the company behind its British operations fell into administration.
Wellness Efforts
Responding to customer preferences towards balanced diets, the company has launched reduced-calorie options, such as its thin-crust selection of bakes below 400 kcals as well as meat-free and wheat-free pizzas. A family-sized pepperoni has 2,311 calories. A family cheese pizza has over 2,100, while a personal has 909 calories.
Interim Management
Frampton has been with the company since the recent past, and had a background at the gaming group William Hill. It is understood that she is not seeking to take on the CEO position long-term.
Frampton stated: “We have a multiple active development and efficiency programs that we will be dedicated to carrying out at speed.”
She said these included ongoing development on the organization's supply chain and product development, and its customer retention initiative.
Domino's is also without a full-time CFO until March 16, when a new appointee joins from the drinks company a well-known firm. For now, Snow serves as interim finance chief.