Pizza Market Saturation? Domino's CEO Exits Following Shift Into Fried Chicken.
A chief executive of Domino's Pizza Group who indicated the United Kingdom might have reached pizza saturation while diversifying the franchise into chicken products has been ousted after disagreements with its board.
Executive Shake-Up
Andrew Rennie is exiting after just two years in the top role, and will be succeeded on an acting basis by the organization's chief operating officer, Frampton, while the pizza giant searches for a long-term chief.
Rennie, who was with Domino's for over 20 years, had attempted to pivot the UK's leading pizza delivery company towards fried chicken, commenting earlier this month there was not “huge potential” left in the UK's pizza market. He observed chicken was the quickest rising food category in the world.
Governance Friction
Sources suggest that there was friction between the CEO and the board over his strategy and management style, although the company's official statement said he was leaving “as a joint decision”.
Recent Product Introduction
In the autumn, the chain introduced its chicken-focused product line – which the former chief referred to as a “bold new chapter” for the organization – and is piloting it in 210 outlets in the north-west of England and the province.
While the firm is still planning to expand it across its nearly 1,400 branches in the coming year as intended, it considers fried chicken as a supplement for its main pizza offerings.
Leadership Comment
The Domino's chair, the company chairman, commented: “The board believes that there are a series of prospects to drive further growth and performance improvement in our primary operations. We are focused on identifying the suitable leader to oversee the disciplined execution of that expansion plan.”
Market Difficulties
Earlier this month, the pizza delivery giant, which has millions of users in the British Isles, said sales fell by one and a half percent in the third quarter. In the summer, it cautioned that the takeaway market had “become tougher” as it attributed economic uncertainty in the period before the government announcement and higher payroll outlays for below-target performance and a significant fall in half-year profits.
Competitors are also facing challenges. Pizza Hut disclosed the closure of 68 restaurants a last month, after the firm behind its UK venues fell into administration.
Wellness Efforts
Responding to customer preferences towards healthier eating, the company has rolled out light options, such as its thin-crust selection of pizzas below 400 kcals as well as meat-free and allergy-friendly options. A large pepperoni pizza has over 2,300 kcal. A large cheese and tomato pizza has 2,171, while a individual has under 1,000 calories.
Interim Management
Nicola Frampton has been with Domino's since the recent past, and had a background at the gaming group William Hill. It is understood that she prefers not to take on the chief executive role on a full-time basis.
Frampton stated: “We have a multiple ongoing expansion and efficiency programs that we will be focused on implementing at speed.”
She said these comprised further work on the company's procurement system and product development, and its loyalty scheme.
Domino's is also without a long-term CFO until 16 March, when Andy Andrea starts from the drinks company a well-known firm. Until then, Richard Snow serves as temporary CFO.