Pizza Market Saturation? Domino's Pizza Chief Executive Steps Down Following Move Towards Chicken.
The chief executive of the UK's Domino's Pizza chain who suggested the United Kingdom might have reached maximum pizza demand while broadening the franchise into chicken products has been replaced after disagreements with its board.
Executive Shake-Up
Andrew Rennie is departing after only 24 months in the top role, and will be replaced on an temporary basis by the organization's operations head, Frampton, while the pizza giant seeks a permanent CEO.
Rennie, who was with the company for a substantial period, had sought to pivot Britain's leading pizza food delivery firm towards poultry-based products, stating earlier this month there was not “massive growth” left in the British pizza industry. He said poultry was the fastest-growing food category in the world.
Board Friction
It is understood that there was tension between Rennie and the governance team over his focus and business vision, although the company's release said he was stepping down “as a joint decision”.
Recent Brand Launch
In September, the chain introduced its Chick 'N' Dip product line – which the former chief called a “significant new phase” for the organization – and is trialling it in select stores in the north-west of England and the province.
While the firm is still going to roll it out across its extensive network in the coming year as scheduled, it regards chicken products as complementary to its core pizza business.
Board Comment
Bull, the company chairman, stated: “We are confident that there are a number of opportunities to boost expansion and value creation in our primary operations. We are prioritizing finding the right chief executive to lead the careful implementation of that expansion plan.”
Market Challenges
Earlier this month, the pizza delivery giant, which has millions of users in the British Isles, said transactions fell by 1.5% in the third quarter. In the summer, it cautioned that the food delivery sector had “become tougher” as it attributed economic uncertainty in the lead-up to the budget and increasing labor expenses for below-target performance and a 15% drop in six-month income.
Other pizza operators are also struggling. Another major chain announced the closing of 68 restaurants a last month, after the company behind its UK venues fell into administration.
Health Efforts
Trying to keep up with customer preferences towards better nutrition, the company has introduced light items, such as its light base range of bakes below 400 kcals as well as plant-based and gluten-free options. A big pepperoni bake has 2,311 calories. A family cheese pizza has 2,171 kcal, while a small has 909 calories.
Acting Leadership
Nicola Frampton has been with the company since the recent past, and was formerly with the gambling company a well-known operator. It is thought that she does not want to occupy the CEO position long-term.
Frampton stated: “The company has a multiple active development and operational projects that we will be concentrating on executing at speed.”
Frampton noted these comprised ongoing development on the company's procurement system and product development, and its rewards program.
Domino's is also in need of a permanent finance director until the spring, when Andy Andrea starts from the drinks company C&C Group. For now, Snow serves as interim finance chief.