Has Pizza Peaked? Domino's Pizza Leader Departs Following Move Into Fried Chicken.
A head of the UK's Domino's Pizza chain who indicated the United Kingdom might have hit pizza saturation while diversifying the chain into fried chicken has been replaced after conflicts with its board.
Leadership Transition
Rennie is leaving after only 24 months in charge, and will be succeeded on an temporary basis by the company's operations head, Nicola Frampton, while Domino's looks for a permanent CEO.
The outgoing executive, who worked for the company for a substantial period, had sought to redirect Britain's largest pizza food delivery firm towards poultry-based products, stating earlier this month there was not “massive growth” left in the UK's pizza market. He noted poultry was the most rapidly expanding protein in the international market.
Board Tensions
Sources suggest that there was tension between Rennie and the directors over his focus and direction, although the company's announcement said he was stepping down “by mutual agreement”.
New Product Launch
In September, the chain introduced its poultry product line – which the former chief referred to as a “major strategic shift” for the company – 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 almost 1,400 stores next year as planned, it views chicken products as an addition to its primary pizza operations.
Board Statement
Bull, the company chairman, said: “We are confident that there are a number of opportunities to drive further growth and profitability in our primary operations. We are prioritizing identifying the right chief executive to direct the careful implementation of that growth strategy.”
Industry Difficulties
Earlier this month, Domino's, which has a substantial customer base in the British Isles, said transactions dipped by 1.5% in the latest quarter. In the summer, it warned that the takeaway market had “grown more challenging” as it blamed reduced spending in the period before the budget and increasing labor expenses for below-target performance and a 15% drop in interim earnings.
Rival chains are also struggling. Pizza Hut disclosed the closure of 68 restaurants a last month, after the business behind its outlets fell into administration.
Wellness Efforts
Adapting to market shifts towards balanced diets, Domino's has launched light products, such as its Thin & Crispy selection of bakes below 400 kcal as well as meat-free and allergy-friendly options. A big pepperoni bake has over 2,300 kcal. A family cheese pizza has 2,171 kcal, while a small has under 1,000 calories.
Interim Leadership
Frampton has been with the company since the recent past, and previously worked for the gaming group William Hill. It is thought that she is not seeking to take on the CEO position permanently.
She said: “The company has a multiple active growth and efficiency programs that we will be focused on carrying out at a rapid rate.”
Frampton noted these included ongoing development on the company's supply chain and product development, and its rewards program.
Domino's is also without a permanent finance director until 16 March, when Andrea joins from the Irish cider and beer maker a well-known firm. In the meantime, Richard Snow serves as interim finance chief.