Pizza Market Saturation? Domino's CEO Departs Following Shift Into Chicken.
The head of Domino's Pizza Group who indicated the United Kingdom might have reached peak pizza while broadening the company into chicken products has been removed after disagreements with its governing body.
Leadership Change
Andrew Rennie is leaving after only 24 months in the top role, and will be succeeded on an temporary basis by the company's chief operating officer, Frampton, while Domino's looks for a permanent CEO.
Rennie, who served at Domino's for over 20 years, had aimed to redirect Britain's leading pizza food delivery firm towards poultry-based products, remarking earlier this month there was not “significant expansion” left in the pizza sector in the UK. He noted chicken was the most rapidly expanding protein in the international market.
Board Friction
Sources suggest that there was friction between the CEO and the governance team over his focus and direction, although the company's announcement said he was departing “through mutual consent”.
New Product Introduction
In the autumn, the chain unveiled its poultry product line – which Rennie called a “bold new chapter” for the group – and is testing it in over 200 locations in the north-west of England and the province.
While the firm is still planning to expand it across its extensive network next year as scheduled, it considers fried chicken as a supplement for its main pizza offerings.
Board Statement
Ian Bull, the Domino's chair, said: “Directors think that there are a series of prospects to drive further growth and profitability in our primary operations. We are concentrating on selecting the ideal CEO to lead the careful implementation of that development approach.”
Industry Challenges
Recently, Domino's, which has a substantial customer base in the UK and Ireland, said sales declined by 1.5% in the third quarter. In August, it alerted that the takeaway market had “grown more challenging” as it attributed reduced spending in the run-up to the government announcement and increasing labor expenses for disappointing revenue and a 15 percent decline in interim earnings.
Competitors are also struggling. Another major chain announced the closure of multiple locations a month ago, after the business behind its outlets faced financial collapse.
Wellness Efforts
Adapting to market shifts towards balanced diets, the company has rolled out lower-calorie options, such as its thin-crust range of bakes below 400 kcal as well as meat-free and wheat-free options. A large pepperoni pizza has 2,311 kcals. A big margherita has 2,171 kcal, while a personal has 909 calories.
Acting Leadership
Nicola Frampton has been with the company since the recent past, and previously worked for the gambling company a well-known operator. It is thought that she does not want to occupy the CEO position long-term.
She said: “The company has a several current growth and performance initiatives that we will be dedicated to carrying out at a rapid rate.”
Frampton noted these included additional efforts on the organization's procurement system and product development, and its loyalty scheme.
The pizza chain is also lacking a long-term chief financial officer until March 16, when a new appointee starts from the drinks company a well-known firm. For now, Richard Snow is acting financial officer.