Has Pizza Peaked? Domino's Leader Departs Following Shift Towards Chicken.
The boss of Domino's Pizza Group who proposed the United Kingdom might have reached maximum pizza demand while expanding the chain into fried chicken has been removed after conflicts with its directors.
Leadership Transition
Andrew Rennie is departing after a brief tenure in the top role, and will be replaced on an interim basis by the company's chief operating officer, Nicola Frampton, while the pizza giant searches for a new leader.
Rennie, who was with the company for a substantial period, had attempted to pivot Britain's leading pizza food delivery firm towards chicken offerings, commenting recently there was not “huge potential” left in the pizza sector in the UK. He noted poultry was the most rapidly expanding menu item in the international market.
Governance Tensions
It is understood that there was tension between the CEO and the board over his strategy and business vision, although Domino's official statement said he was leaving “by mutual agreement”.
New Brand Launch
In September, Domino's launched its chicken-focused brand – which Rennie called a “major strategic shift” for the company – and is trialling it in select stores in the North West region and the province.
While the business is still planning to expand it across its extensive network in the coming year as intended, it regards chicken products as an addition to its core pizza business.
Leadership Comment
Ian Bull, the Domino's chairman, said: “The board believes that there are a series of prospects to drive further growth and performance improvement in the main pizza segment. We are concentrating on identifying the suitable leader to lead the careful implementation of that development approach.”
Industry Challenges
In the latest update, the pizza delivery giant, which has 13 million customers in the UK and Ireland, said orders declined by 1.5% in the latest quarter. In August, it alerted that the takeaway market had “become tougher” as it attributed economic uncertainty in the run-up to the government announcement and rising wage costs for disappointing revenue and a 15 percent decline in six-month income.
Other pizza operators are also facing challenges. Another major chain announced the closing of 68 restaurants a recently, after the company behind its outlets entered insolvency.
Wellness Initiatives
Responding to consumer trends towards healthier eating, Domino's has launched light products, such as its Thin & Crispy selection of bakes below 400 kcal as well as vegan and wheat-free pizzas. A large pepperoni pizza has 2,311 kcals. A family cheese pizza has 2,171 kcal, while a individual has 909 calories.
Interim Leadership
The interim chief has been with Domino's since the recent past, and previously worked for the gambling company William Hill. It is understood that she prefers not to occupy the top job on a full-time basis.
Frampton stated: “We have a multiple active growth and performance initiatives that we will be focused on executing at a rapid rate.”
She said these comprised ongoing development on the organization's logistics network and product development, and its customer retention initiative.
The pizza chain is also lacking a long-term chief financial officer until 16 March, when Andy Andrea starts from the Irish cider and beer maker a well-known firm. For now, Richard Snow acts as temporary CFO.