Pizza Market Saturation? Domino's Pizza CEO Steps Down Following Pivot Into Fried Chicken.
A head of the UK's Domino's Pizza chain who suggested the United Kingdom might have reached maximum pizza demand while expanding the chain into chicken products has been removed after conflicts with its board.
Executive Transition
Andrew Rennie is leaving after only 24 months in charge, and will be succeeded on an interim basis by the company's operations head, Nicola Frampton, while Domino's looks for a permanent CEO.
Rennie, who worked for Domino's for over 20 years, had sought to pivot the UK's biggest pizza food delivery firm towards chicken offerings, commenting in a recent interview there was not “significant expansion” left in the UK's pizza market. He observed poultry was the quickest rising protein in the international market.
Board Friction
Reports indicate that there was disagreement between Rennie and the directors over his focus and direction, although Domino's official statement said he was departing “by mutual agreement”.
New Product Launch
In the autumn, Domino's introduced its Chick 'N' Dip offering – which the former chief described as a “bold new chapter” for the company – and is piloting it in select stores in the north-west of England and the province.
While the business is still planning to expand it across its nearly 1,400 branches next year as scheduled, it regards chicken products as complementary to its core pizza business.
Board Statement
Bull, the company chair, commented: “The board believes that there are a series of prospects to enhance value and profitability in the main pizza segment. We are focused on selecting the right chief executive to direct the disciplined execution of that expansion plan.”
Industry Difficulties
Recently, the pizza delivery giant, which has millions of users in the UK and Ireland, said transactions declined by one and a half percent in the latest quarter. In August, it alerted that the quick-service industry had “intensified” as it attributed reduced spending in the run-up to the government announcement and rising wage costs for below-target performance and a 15% drop in interim earnings.
Competitors are also struggling. Another major chain revealed the shutting of multiple locations a month ago, after the company behind its outlets fell into administration.
Health Efforts
Responding to customer preferences towards better nutrition, the company has introduced lower-calorie options, such as its thin-crust line of bakes below 400 kcal as well as vegan and allergy-friendly pizzas. A family-sized pepperoni has 2,311 kcals. A large cheese and tomato pizza has over 2,100, while a small has 909 kcal.
Interim Management
Nicola Frampton has been with Domino's since the recent past, and previously worked for the betting firm William Hill. It is understood that she prefers not to take on the chief executive role permanently.
She commented: “We have a several current expansion and efficiency programs that we will be focused on executing at speed.”
She added these involved additional efforts on the organization's logistics network and menu innovation, and its rewards program.
Domino's is also in need of a permanent finance director until March 16, when Andy Andrea joins from the beverage producer a well-known firm. For now, Snow acts as temporary CFO.