Peak Pizza? Domino's Pizza Chief Executive Exits Following Move Towards Fried Chicken.
The boss of the UK's Domino's Pizza chain who indicated the United Kingdom might have reached pizza saturation while diversifying the franchise into poultry items has been ousted after tensions with its board.
Leadership Transition
Andrew Rennie is departing after just two years in the top role, and will be replaced on an acting basis by the organization's operations head, Frampton, while Domino's looks for a permanent CEO.
Rennie, who served at the company for over 20 years, had attempted to redirect the UK's biggest pizza food delivery firm towards chicken offerings, stating earlier this month there was not “massive growth” left in the British pizza industry. He said poultry was the fastest-growing food category in the globe.
Governance Friction
It is understood that there was tension between Rennie and the governance team over his approach and business vision, although the company's official statement said he was departing “by mutual agreement”.
Recent Brand Launch
In the autumn, the chain unveiled its chicken-focused offering – which Rennie called a “significant new phase” for the company – and is testing it in 210 outlets in the north-west of England and the province.
While the company is still intending to launch it across its extensive network 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, said: “We are confident that there are a range of possibilities to drive further growth and performance improvement in Domino's core business. We are concentrating on identifying the suitable leader to lead the careful implementation of that growth strategy.”
Market Difficulties
Earlier this month, Domino's, which has millions of users in the British Isles, said sales dipped by one and a half percent in the Q3. In the summer, it cautioned that the quick-service industry had “become tougher” as it attributed economic uncertainty in the run-up to the government announcement and increasing labor expenses for below-target performance and a 15% drop in interim earnings.
Rival chains are also struggling. Pizza Hut revealed the closing of dozens of outlets a last month, after the firm behind its British operations fell into administration.
Wellness Initiatives
Trying to keep up with consumer trends towards better nutrition, Domino's has launched reduced-calorie items, such as its light base line of pizzas below 400 kcal as well as plant-based and allergy-friendly pizzas. A family-sized pepperoni has over 2,300 kcal. A family cheese pizza has over 2,100, while a individual has 909 kcal.
Interim Leadership
Frampton has been with the company since the recent past, and was formerly with the betting firm a well-known operator. It is believed that she does not want to assume the top job on a full-time basis.
Frampton stated: “We have a multiple active development and performance initiatives that we will be concentrating on implementing at speed.”
Frampton noted these comprised ongoing development on the organization's procurement system and product development, and its customer retention initiative.
Domino's is also in need of a full-time finance director until the spring, when Andrea comes aboard from the Irish cider and beer maker a well-known firm. Until then, Snow is temporary CFO.