Pizza Market Saturation? Domino's CEO Steps Down After Pivot Towards Chicken.
The chief executive of Domino's Pizza Group who indicated the United Kingdom might have reached maximum pizza demand while broadening the franchise into chicken products has been removed after conflicts with its directors.
Leadership Shake-Up
Rennie is exiting after a brief tenure in charge, and will be succeeded on an acting basis by the company's operations head, Nicola Frampton, while the pizza giant seeks a new leader.
Rennie, who was with Domino's for over 20 years, had attempted to shift the UK's biggest pizza takeaway chain towards chicken offerings, stating in a recent interview there was not “massive growth” left in the pizza sector in the UK. He said chicken was the fastest-growing protein in the international market.
Board Tensions
It is understood that there was tension between Rennie and the directors over his focus and business vision, although Domino's announcement said he was stepping down “through mutual consent”.
Recent Brand Introduction
In the autumn, the chain introduced its Chick 'N' Dip offering – which the former chief described as a “bold new chapter” for the group – and is trialling it in over 200 locations in the north-west of England and the province.
While the business is still intending to launch it across its almost 1,400 stores next year as intended, it views chicken products as complementary to its main pizza offerings.
Leadership Statement
Bull, the company chair, commented: “The board believes that there are a range of possibilities to drive further growth and profitability in our primary operations. We are focused on identifying the right chief executive to direct the careful implementation of that expansion plan.”
Industry Difficulties
Recently, the pizza delivery giant, which has millions of users in the British Isles, said orders fell by 1.5 percent in the third quarter. In August, it alerted that the food delivery sector had “grown more challenging” as it attributed weaker consumer confidence in the lead-up to the budget and increasing labor expenses for weaker-than-expected sales and a 15 percent decline in interim earnings.
Rival chains are also struggling. Pizza Hut announced the shutting of multiple locations a month ago, after the business behind its British operations faced financial collapse.
Wellness Efforts
Responding to customer preferences towards balanced diets, the company has introduced lower-calorie options, such as its Thin & Crispy selection of pizzas below 400 kcal as well as plant-based and gluten-free options. A big pepperoni bake has over 2,300 kcal. A big margherita has 2,171 kcal, while a individual has under 1,000 calories.
Interim Leadership
The interim chief has been with the company since the recent past, and had a background at the gaming group William Hill. It is thought that she is not seeking to assume the CEO position on a full-time basis.
She commented: “We have a several ongoing growth and efficiency programs that we will be focused on implementing at speed.”
Frampton noted these included ongoing development on the company's procurement system and menu innovation, and its loyalty scheme.
Domino's is also in need of a full-time chief financial officer until March 16, when Andrea joins from the Irish cider and beer maker C&C Group. In the meantime, Snow is acting financial officer.