Peak Pizza? Domino's Pizza Leader Steps Down Following Move Into Chicken.
A head of the UK's Domino's Pizza chain who proposed the United Kingdom might have hit maximum pizza demand while expanding the company into fried chicken has been replaced after tensions with its directors.
Executive Change
Andrew Rennie is leaving after just two years in charge, and will be replaced on an acting basis by the organization's chief operating officer, Nicola Frampton, while Domino's looks for a long-term chief.
Rennie, who worked for the company for over 20 years, had aimed to shift the UK's largest pizza takeaway chain towards poultry-based products, stating earlier this month there was not “significant expansion” left in the British pizza industry. He observed chicken was the quickest rising menu item in the world.
Governance Friction
Sources suggest that there was tension between the CEO and the directors over his focus and direction, although Domino's official statement said he was departing “through mutual consent”.
New Brand Introduction
In the autumn, Domino's introduced its poultry offering – which the former chief referred to as a “significant new phase” for the group – and is trialling it in 210 outlets in the north-west of England and the province.
While the business is still intending to launch it across its extensive network in the coming year as planned, it views fried chicken as a supplement for its primary pizza operations.
Board Comment
Ian Bull, the Domino's chairman, stated: “Directors think that there are a number of opportunities to boost expansion and performance improvement in our primary operations. We are concentrating on identifying the suitable leader to lead the disciplined execution of that development approach.”
Industry Challenges
Earlier this month, Domino's, which has millions of users in the UK and Ireland, said sales fell by 1.5 percent in the latest quarter. In the summer, it cautioned that the food delivery sector had “grown more challenging” as it blamed weaker consumer confidence in the run-up to the budget and higher payroll outlays for disappointing revenue and a 15 percent decline in six-month income.
Other pizza operators are also experiencing difficulties. Another major chain announced the shutting of multiple locations a last month, after the business behind its outlets faced financial collapse.
Health Initiatives
Trying to keep up with customer preferences towards healthier eating, Domino's has rolled out lower-calorie options, such as its thin-crust range of bakes below 400 kcal as well as vegan and allergy-friendly options. A large pepperoni pizza has 2,311 calories. A family cheese pizza has 2,171 kcal, while a personal has 909 calories.
Acting Management
Frampton has been with the company since the recent past, and previously worked for the gambling company William Hill. It is understood that she is not seeking to occupy the CEO position on a full-time basis.
She said: “The company has a number of current growth and operational projects that we will be dedicated to executing at pace.”
Frampton noted these comprised additional efforts on the organization's supply chain and menu innovation, and its rewards program.
The pizza chain is also in need of a long-term finance director until March 16, when Andy Andrea joins from the beverage producer a well-known firm. For now, Richard Snow is acting financial officer.