Peak Pizza? Domino's Pizza Leader Exits Following Pivot Towards Fried Chicken.
A head of Domino's Pizza Group who proposed the UK might have hit maximum pizza demand while broadening the franchise into fried chicken has been replaced after disagreements with its directors.
Executive Change
The former CEO is departing after a brief tenure in charge, and will be succeeded on an acting basis by the company's operations head, Nicola Frampton, while the pizza giant seeks a permanent CEO.
Rennie, who was with the company for more than two decades, had aimed to shift Britain's biggest pizza takeaway chain towards chicken offerings, stating recently there was not “significant expansion” left in the British pizza industry. He observed poultry was the quickest rising protein in the world.
Governance Disagreements
It is understood that there was friction between the CEO and the board over his approach and business vision, although Domino's release said he was departing “as a joint decision”.
New Brand Introduction
In September, the chain introduced its Chick 'N' Dip brand – which Rennie described as a “major strategic shift” for the group – and is testing it in over 200 locations in the North West region and the province.
While the firm is still going to roll it out across its almost 1,400 stores in the coming year as intended, it considers fried chicken as a supplement for its primary pizza operations.
Leadership Statement
Ian Bull, the Domino's chair, stated: “The board believes that there are a range of possibilities to enhance value and profitability in our primary operations. We are prioritizing identifying the right chief executive to oversee the disciplined execution of that development approach.”
Market Difficulties
In the latest update, the pizza delivery giant, which has millions of users in the British Isles, said orders dipped by one and a half percent in the Q3. In August, it cautioned that the food delivery sector had “intensified” as it blamed economic uncertainty in the run-up to the budget and higher payroll outlays for below-target performance and a 15% drop in six-month income.
Competitors are also facing challenges. Another major chain revealed the shutting of multiple locations a last month, after the business behind its UK venues faced financial collapse.
Wellness Initiatives
Trying to keep up with market shifts towards balanced diets, Domino's has launched lower-calorie items, such as its thin-crust range of bakes below 400 kcals as well as plant-based and wheat-free options. A big pepperoni bake has over 2,300 kcal. A large cheese and tomato pizza has 2,171, while a small has 909 kcal.
Interim Leadership
Nicola Frampton has been with the company since the recent past, and previously worked for the betting firm William Hill. It is believed that she does not want to take on the top job long-term.
She commented: “The company has a number of ongoing expansion and operational projects that we will be concentrating on implementing at a rapid rate.”
Frampton noted these involved additional efforts on the organization's logistics network and new item creation, and its loyalty scheme.
Domino's is also without a permanent chief financial officer until March 16, when a new appointee comes aboard from the Irish cider and beer maker C&C Group. For now, Richard Snow serves as acting financial officer.