Has Pizza Peaked? Domino's Chief Executive Departs After Pivot Towards Fried Chicken.
A chief executive of the UK's Domino's Pizza chain who indicated the United Kingdom might have hit peak pizza while diversifying the franchise into fried chicken has been ousted after disagreements with its governing body.
Executive Shake-Up
Rennie is exiting after a brief tenure in leadership, and will be succeeded on an acting basis by the organization's chief operating officer, Nicola Frampton, while Domino's seeks a new leader.
The outgoing executive, who worked for Domino's for a substantial period, had aimed to redirect Britain's biggest pizza delivery company towards fried chicken, stating earlier this month there was not “massive growth” left in the pizza sector in the UK. He noted chicken was the fastest-growing menu item in the international market.
Governance Tensions
It is understood that there was tension between the CEO and the governance team over his focus and direction, although Domino's release said he was departing “through mutual consent”.
Recent Product Introduction
In September, Domino's launched its poultry product line – 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 of England and the province.
While the company is still going to roll it out across its extensive network next year as intended, it regards fried chicken as a supplement for its primary pizza operations.
Leadership Statement
The Domino's chair, the Domino's chair, stated: “Directors think that there are a range of possibilities to boost expansion and performance improvement in our primary operations. We are concentrating on finding the suitable leader to direct the disciplined execution of that growth strategy.”
Market Challenges
In the latest update, the pizza delivery giant, which has 13 million customers in the British Isles, said orders declined by 1.5% in the third quarter. In August, it cautioned that the food delivery sector had “grown more challenging” as it blamed reduced spending in the period before the government announcement and rising wage costs for disappointing revenue and a 15 percent decline in six-month income.
Competitors are also facing challenges. Pizza Hut revealed the closing of 68 restaurants a recently, after the company behind its British operations faced financial collapse.
Wellness Initiatives
Trying to keep up with market shifts towards balanced diets, the company has introduced lower-calorie products, such as its thin-crust line of bakes below 400 calories as well as vegan and allergy-friendly pizzas. A big pepperoni bake has 2,311 kcals. 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 the company since the recent past, and had a background at the betting firm William Hill. It is thought that she is not seeking to assume the chief executive role on a full-time basis.
She said: “We have a multiple active growth and efficiency programs that we will be concentrating on implementing at pace.”
She added these comprised ongoing development on the organization's logistics network and product development, and its rewards program.
Domino's is also in need of a full-time CFO until 16 March, when Andy Andrea joins from the drinks company C&C Group. For now, Richard Snow acts as interim finance chief.