Has Pizza Peaked? Domino's Pizza Leader Steps Down Following Pivot Into Chicken.
The head of the UK's Domino's Pizza chain who suggested the United Kingdom might have reached peak pizza while broadening the company into poultry items has been ousted after tensions with its governing body.
Executive Shake-Up
Andrew Rennie is leaving after a brief tenure in charge, and will be succeeded on an temporary basis by the company's chief operating officer, Frampton, while the pizza giant seeks a long-term chief.
The outgoing executive, who was with the company for more than two decades, had attempted to pivot Britain's leading pizza food delivery firm towards chicken offerings, stating earlier this month there was not “significant expansion” left in the UK's pizza market. He said poultry was the quickest rising menu item in the international market.
Board Tensions
It is understood that there was tension between Rennie and the directors over his focus and management style, although the company's official statement said he was leaving “through mutual consent”.
New Product Launch
In the autumn, the chain introduced its Chick 'N' Dip offering – which Rennie called a “major strategic shift” for the group – and is testing it in 210 outlets in the North West region and the province.
While the firm is still planning to expand it across its nearly 1,400 branches in the coming year as planned, it views chicken products as an addition to its core pizza business.
Board Comment
Bull, the Domino's chairman, said: “The board believes that there are a series of prospects to boost expansion and value creation in the main pizza segment. We are focused on finding the suitable leader to direct the disciplined execution of that development approach.”
Industry Challenges
Recently, Domino's, which has a substantial customer base in the British Isles, said transactions fell by one and a half percent in the Q3. In August, it alerted that the takeaway market had “grown more challenging” as it blamed weaker consumer confidence in the lead-up to the government announcement and increasing labor expenses for weaker-than-expected sales and a significant fall in half-year profits.
Rival chains are also facing challenges. Another major chain disclosed the shutting of 68 restaurants a month ago, after the company behind its British operations faced financial collapse.
Wellness Initiatives
Adapting to consumer trends towards balanced diets, Domino's has introduced light items, such as its light base line of pizzas below 400 calories as well as plant-based and wheat-free pizzas. A large pepperoni pizza has over 2,300 kcal. A large cheese and tomato pizza has 2,171, while a small has 909 kcal.
Acting Leadership
The interim chief has been with Domino's since the recent past, and previously worked for the betting firm William Hill. It is believed that she prefers not to take on the CEO position permanently.
She said: “We have a several current growth and efficiency programs that we will be concentrating on carrying out at pace.”
She said these included additional efforts on the company's supply chain and new item creation, and its loyalty scheme.
Domino's is also lacking a long-term chief financial officer until the spring, when Andrea joins from the Irish cider and beer maker a well-known firm. In the meantime, Richard Snow acts as acting financial officer.