Pizza Market Saturation? Domino's CEO Exits Following Move Into Fried Chicken.
The boss of the UK's Domino's Pizza chain who proposed the United Kingdom might have hit maximum pizza demand while expanding the chain into fried chicken has been ousted after conflicts with its governing body.
Leadership Shake-Up
Andrew Rennie is departing after a brief tenure in the top role, and will be succeeded on an interim basis by the company's operations head, Frampton, while the pizza giant seeks a permanent CEO.
Rennie, who served at Domino's for more than two decades, had aimed to shift the UK's largest pizza takeaway chain towards poultry-based products, remarking earlier this month there was not “significant expansion” left in the British pizza industry. He noted chicken was the fastest-growing menu item in the globe.
Governance Friction
It is understood that there was friction between Rennie and the board over his strategy and business vision, although the company's official statement said he was departing “through mutual consent”.
New Brand Introduction
In September, the chain introduced its poultry brand – which the former chief described as a “significant new phase” for the group – and is trialling it in 210 outlets in the North West region and Northern Ireland.
While the business is still planning to expand it across its nearly 1,400 branches next year as scheduled, it considers chicken products as a supplement for its main pizza offerings.
Board Statement
The Domino's chair, the company chairman, said: “Directors think that there are a range of possibilities to drive further growth and value creation in our primary operations. We are prioritizing selecting the suitable leader to oversee the careful implementation of that growth strategy.”
Industry Difficulties
Earlier this month, the pizza delivery giant, which has a substantial customer base in the British Isles, said orders fell by 1.5 percent in the third quarter. In August, it cautioned that the takeaway market had “become tougher” as it attributed reduced spending in the period before the budget and higher payroll outlays for below-target performance and a 15 percent decline in six-month income.
Rival chains are also struggling. Another major chain disclosed the shutting of dozens of outlets a recently, after the firm behind its UK venues fell into administration.
Health Efforts
Adapting to market shifts towards balanced diets, Domino's has rolled out light products, such as its thin-crust line of bakes below 400 kcals as well as plant-based and allergy-friendly options. A big pepperoni bake has 2,311 calories. A family cheese pizza has over 2,100, while a individual has 909 calories.
Acting Management
The interim chief has been with the company since the recent past, and previously worked for the betting firm a well-known operator. It is believed that she prefers not to assume the top job permanently.
She said: “Our team has a multiple current development and efficiency programs that we will be focused on executing at speed.”
She added these involved further work on the organization's logistics network and new item creation, and its rewards program.
Domino's is also in need of a long-term finance director until 16 March, when Andrea comes aboard from the Irish cider and beer maker C&C Group. For now, Richard Snow is temporary CFO.