Pizza Market Saturation? Domino's Chief Executive Steps Down After Shift Towards Chicken.
A chief executive of Domino's Pizza Group who indicated the United Kingdom might have hit peak pizza while broadening the chain into poultry items has been replaced after conflicts with its directors.
Leadership Shake-Up
Rennie is leaving after only 24 months in leadership, and will be succeeded on an interim basis by the organization's operations head, Frampton, while the pizza giant seeks a long-term chief.
Rennie, who worked for the company for a substantial period, had sought to redirect Britain's largest pizza delivery company towards poultry-based products, remarking recently there was not “significant expansion” left in the UK's pizza market. He said poultry was the most rapidly expanding menu item in the globe.
Board Disagreements
Reports indicate that there was disagreement between Rennie and the board over his focus and management style, although the company's release said he was departing “through mutual consent”.
New Product Launch
In September, Domino's unveiled its chicken-focused product line – which Rennie described as a “bold new chapter” for the organization – and is testing it in select stores 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 scheduled, it views chicken products as a supplement for its primary pizza operations.
Board Comment
The Domino's chair, the company chair, commented: “We are confident that there are a number of opportunities to boost expansion and value creation in the main pizza segment. We are prioritizing selecting the suitable leader to direct the disciplined execution of that development approach.”
Industry Difficulties
In the latest update, the pizza delivery giant, which has 13 million customers in the British Isles, said orders declined by 1.5 percent in the latest quarter. In August, it cautioned that the food delivery sector had “intensified” as it blamed reduced spending in the run-up to the budget and higher payroll outlays for below-target performance and a significant fall in interim earnings.
Competitors are also facing challenges. Another major chain disclosed the closure of dozens of outlets a recently, after the company behind its British operations fell into administration.
Health Initiatives
Responding to customer preferences towards balanced diets, the company has rolled out reduced-calorie products, such as its Thin & Crispy line of bakes below 400 kcal as well as plant-based and allergy-friendly pizzas. A family-sized pepperoni has 2,311 kcals. A large cheese and tomato pizza has 2,171 kcal, while a personal has 909 kcal.
Acting Leadership
Frampton has been with Domino's since the recent past, and previously worked for the gambling company William Hill. It is believed that she does not want to take on the CEO position long-term.
She said: “We have a number of ongoing growth and performance initiatives that we will be focused on implementing at pace.”
She added these included ongoing development on the company's logistics network and product development, and its rewards program.
Domino's is also in need of a permanent CFO until March 16, when Andy Andrea starts from the Irish cider and beer maker a well-known firm. For now, Richard Snow serves as interim finance chief.