Pizza Market Saturation? Domino's Chief Executive Exits Following Move Towards Chicken.
The boss of Domino's Pizza Group who proposed the UK might have hit peak pizza while diversifying the company into chicken products has been replaced after disagreements with its board.
Executive Shake-Up
The former CEO is leaving after just two years in charge, and will be replaced on an temporary basis by the company's chief operating officer, Frampton, while Domino's looks for a permanent CEO.
Rennie, who worked for Domino's for over 20 years, had aimed to redirect the UK's largest pizza takeaway chain towards poultry-based products, commenting in a recent interview there was not “significant expansion” left in the pizza sector in the UK. He observed chicken was the most rapidly expanding food category in the world.
Board Friction
Sources suggest that there was tension between Rennie and the board over his strategy and management style, although the company's announcement said he was stepping down “by mutual agreement”.
New Product Launch
In the autumn, the chain launched its poultry brand – which the former chief described as a “major strategic shift” for the organization – and is testing it in select stores in the north-west of England and Northern Ireland.
While the business is still going to roll it out across its almost 1,400 stores in the coming year as intended, it considers fried chicken as a supplement for its core pizza business.
Leadership Statement
Ian Bull, the company chair, stated: “Directors think that there are a range of possibilities to drive further growth and value creation in our primary operations. We are concentrating on selecting the right chief executive to oversee the systematic rollout of that development approach.”
Market Difficulties
Recently, the pizza delivery giant, which has a substantial customer base in the UK and Ireland, said orders fell by 1.5 percent in the Q3. In the summer, it cautioned that the quick-service industry had “grown more challenging” as it attributed weaker consumer confidence in the period before the budget and increasing labor expenses for disappointing revenue and a 15% drop in half-year profits.
Other pizza operators are also struggling. Another major chain revealed the shutting of 68 restaurants a last month, after the company behind its UK venues fell into administration.
Wellness Efforts
Adapting to customer preferences towards healthier eating, Domino's has launched reduced-calorie items, such as its Thin & Crispy line of bakes below 400 calories as well as plant-based and allergy-friendly options. A large pepperoni pizza has over 2,300 kcal. A large cheese and tomato pizza has over 2,100, while a personal has 909 calories.
Acting Management
The interim chief has been with Domino's since the recent past, and had a background at the betting firm William Hill. It is believed that she is not seeking to assume the chief executive role long-term.
She said: “The company has a several active expansion and efficiency programs that we will be concentrating on carrying out at pace.”
She said these included additional efforts on the organization's logistics network and menu innovation, and its customer retention initiative.
Domino's is also without a permanent chief financial officer until March 16, when a new appointee starts from the beverage producer C&C Group. For now, Richard Snow is acting financial officer.