Pizza Market Saturation? Domino's Pizza Chief Executive Steps Down Following Pivot Into Chicken.
The chief executive of the UK's Domino's Pizza chain who indicated the United Kingdom might have hit maximum pizza demand while broadening the franchise into chicken products has been removed after tensions with its directors.
Executive Transition
Andrew Rennie is exiting after just two years in leadership, and will be replaced on an acting basis by the organization's operations head, Frampton, while the pizza giant searches for a new leader.
The outgoing executive, who worked for the company for more than two decades, had attempted to redirect Britain's largest pizza takeaway chain towards fried chicken, commenting in a recent interview there was not âmassive growthâ left in the British pizza industry. He said chicken was the fastest-growing menu item in the international market.
Governance Disagreements
Sources suggest that there was friction between the CEO and the governance team over his focus and business vision, although the company's announcement said he was departing âthrough mutual consentâ.
New Product Launch
In September, Domino's launched its poultry brand â which the former chief described as a âsignificant new phaseâ for the organization â and is trialling it in 210 outlets 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 scheduled, it views chicken products as complementary to its core pizza business.
Board Statement
The Domino's chair, the Domino's chair, commented: âDirectors think that there are a range of possibilities to boost expansion and value creation in the main pizza segment. We are focused on identifying the ideal CEO to oversee the disciplined execution of that expansion plan.â
Market Difficulties
In the latest update, Domino's, which has a substantial customer base in the British Isles, said sales declined by one and a half percent in the third quarter. In the summer, it cautioned that the takeaway market had âgrown more challengingâ as it attributed reduced spending in the period before the budget and increasing labor expenses for weaker-than-expected sales and a 15 percent decline in interim earnings.
Competitors are also experiencing difficulties. Pizza Hut announced the closing of dozens of outlets a month ago, after the firm behind its UK venues fell into administration.
Health Initiatives
Trying to keep up with market shifts towards healthier eating, Domino's has introduced light options, such as its light base selection of pizzas below 400 calories as well as plant-based and allergy-friendly pizzas. A family-sized pepperoni has 2,311 kcals. A family cheese pizza has 2,171, while a small has under 1,000 calories.
Acting Leadership
Nicola Frampton has been with Domino's since the recent past, and previously worked for the gaming group a well-known operator. It is understood that she is not seeking to assume the top job long-term.
She said: âOur team has a multiple current growth and performance initiatives that we will be focused on executing at pace.â
She said these involved ongoing development on the organization's supply chain and product development, and its loyalty scheme.
Domino's is also without a full-time CFO until the spring, when a new appointee comes aboard from the beverage producer C&C Group. For now, Richard Snow serves as interim finance chief.