Pizza Market Saturation? Domino's Pizza Chief Executive Exits Following Pivot Into Fried Chicken.
The head of Domino's Pizza Group who indicated the United Kingdom might have reached peak pizza while diversifying the chain into poultry items has been ousted after tensions with its governing body.
Leadership Change
Andrew Rennie is departing after just two years in the top role, and will be succeeded on an acting basis by the organization's operations head, Nicola Frampton, while Domino's seeks a new leader.
The outgoing executive, who was with Domino's for over 20 years, had sought to shift Britain's largest pizza delivery company towards poultry-based products, commenting earlier this month there was not “significant expansion” left in the UK's pizza market. He noted poultry was the quickest rising menu item in the international market.
Governance Tensions
It is understood that there was friction between the CEO and the directors over his focus and business vision, although Domino's release said he was stepping down “as a joint decision”.
New Product Launch
In September, the chain introduced its Chick 'N' Dip brand – which the former chief called a “significant new phase” for the organization – and is piloting 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 extensive network in the coming year as planned, it regards fried chicken as an addition to its main pizza offerings.
Leadership Statement
The Domino's chair, the Domino's chair, said: “We are confident that there are a number of opportunities to enhance value and performance improvement in our primary operations. We are concentrating on finding the suitable leader to oversee the careful implementation of that growth strategy.”
Industry Challenges
In the latest update, the pizza delivery giant, which has a substantial customer base in the UK and Ireland, said orders fell by 1.5 percent in the third quarter. In the summer, it warned that the takeaway market had “become tougher” as it blamed weaker consumer confidence in the period before the budget and higher payroll outlays for below-target performance and a significant fall in interim earnings.
Rival chains are also facing challenges. Another major chain announced the closure of multiple locations a month ago, after the company behind its UK venues fell into administration.
Wellness Initiatives
Trying to keep up with consumer trends towards balanced diets, Domino's has introduced light products, such as its Thin & Crispy selection of bakes below 400 kcal as well as plant-based and allergy-friendly pizzas. A big pepperoni bake has over 2,300 kcal. A large cheese and tomato pizza has 2,171 kcal, while a small has under 1,000 calories.
Acting Leadership
The interim chief has been with the company since the recent past, and was formerly with the gaming group a well-known operator. It is thought that she prefers not to assume the chief executive role on a full-time basis.
She said: “The company has a multiple active expansion and operational projects that we will be concentrating on executing at pace.”
She added these included additional efforts on the organization's procurement system and product development, and its rewards program.
The pizza chain is also without a permanent chief financial officer until the spring, when Andy Andrea starts from the drinks company C&C Group. Until then, Richard Snow is acting financial officer.