Peak Pizza? Domino's Pizza Chief Executive Exits Following Move Towards Fried Chicken.
A boss of the UK's Domino's Pizza chain who suggested the United Kingdom might have reached maximum pizza demand while diversifying the chain into chicken products has been removed after tensions with its board.
Executive Transition
Rennie is leaving after just two years in leadership, and will be replaced on an acting basis by the organization's chief operating officer, Nicola Frampton, while Domino's looks for a long-term chief.
Rennie, who worked for Domino's for more than two decades, had attempted to shift the UK's largest pizza delivery company towards fried chicken, commenting earlier this month there was not “massive growth” left in the pizza sector in the UK. He observed chicken was the most rapidly expanding menu item in the globe.
Board Tensions
Sources suggest that there was disagreement between Rennie and the governance team over his strategy and management style, although Domino's official statement said he was leaving “by mutual agreement”.
New Product Introduction
In September, Domino's introduced its poultry product line – which the former chief referred to as a “significant new phase” for the organization – and is trialling it in over 200 locations in the North West region and Northern Ireland.
While the firm is still intending to launch it across its nearly 1,400 branches in the coming year as planned, it considers fried chicken as an addition to its main pizza offerings.
Leadership Statement
Ian Bull, the Domino's chair, commented: “We are confident that there are a number of opportunities to enhance value and performance improvement in the main pizza segment. We are focused on identifying the right chief executive to direct the disciplined execution of that development approach.”
Market Difficulties
Earlier this month, Domino's, which has a substantial customer base in the British Isles, said transactions fell by one and a half percent in the latest quarter. In the summer, it warned that the quick-service industry had “grown more challenging” as it attributed economic uncertainty in the run-up to the budget and increasing labor expenses for disappointing revenue and a 15% drop in interim earnings.
Competitors are also experiencing difficulties. Pizza Hut disclosed the shutting of 68 restaurants a month ago, after the business behind its outlets entered insolvency.
Health Efforts
Responding to consumer trends towards healthier eating, the company has launched reduced-calorie items, such as its light base range of pizzas below 400 kcals as well as vegan and wheat-free pizzas. A family-sized pepperoni has over 2,300 kcal. A large cheese and tomato pizza has over 2,100, while a small has 909 calories.
Acting Management
Frampton has been with the company since the recent past, and had a background at the betting firm a well-known operator. It is thought that she does not want to assume the top job on a full-time basis.
She commented: “The company has a multiple current development and efficiency programs that we will be focused on implementing at speed.”
Frampton noted these involved additional efforts on the company's procurement system and new item creation, and its loyalty scheme.
Domino's is also lacking a full-time finance director until March 16, when a new appointee comes aboard from the drinks company a well-known firm. For now, Richard Snow acts as temporary CFO.