Peak Pizza? Domino's CEO Exits Following Move Towards Fried Chicken.
A boss of Domino's Pizza Group who proposed the United Kingdom might have hit peak pizza while diversifying the company into poultry items has been replaced after tensions with its governing body.
Leadership Transition
Rennie is departing after a brief tenure in charge, and will be replaced on an temporary basis by the organization's chief operating officer, Nicola Frampton, while the pizza giant looks for a new leader.
Rennie, who served at the company for more than two decades, had attempted to pivot Britain's leading pizza takeaway chain towards fried chicken, commenting earlier this month there was not “significant expansion” left in the UK's pizza market. He said chicken was the quickest rising food category in the world.
Board Disagreements
It is understood that there was friction between the CEO and the directors over his approach and management style, although the company's announcement said he was departing “through mutual consent”.
New Product Launch
In September, the chain launched its Chick 'N' Dip brand – which Rennie referred to as a “major strategic shift” for the organization – and is testing it in select stores in the North West region and the province.
While the business is still intending to launch it across its nearly 1,400 branches next year as scheduled, it views chicken products as a supplement for its main pizza offerings.
Board Statement
Ian Bull, the Domino's chairman, said: “We are confident that there are a series of prospects to boost expansion and performance improvement in Domino's core business. We are focused on finding the suitable leader to lead the disciplined execution of that development approach.”
Market Difficulties
Earlier this month, Domino's, which has millions of users in the British Isles, said orders declined by one and a half percent in the Q3. In the summer, it alerted that the takeaway market had “grown more challenging” as it attributed economic uncertainty in the lead-up to the government announcement and increasing labor expenses for disappointing revenue and a 15% drop in six-month income.
Competitors are also struggling. Another major chain revealed the closing of 68 restaurants a last month, after the firm behind its outlets entered insolvency.
Health Efforts
Trying to keep up with market shifts towards balanced diets, the company has rolled out lower-calorie items, such as its thin-crust range of bakes below 400 kcals as well as vegan and gluten-free options. A big pepperoni bake has over 2,300 kcal. A family cheese pizza has 2,171 kcal, while a individual has 909 calories.
Interim Management
Nicola Frampton has been with Domino's since 2021, and previously worked for the betting firm a well-known operator. It is believed that she does not want to occupy the chief executive role long-term.
She commented: “Our team has a several current development and efficiency programs that we will be concentrating on implementing at speed.”
She added these involved further work on the organization's supply chain and new item creation, and its loyalty scheme.
Domino's is also lacking a full-time CFO until the spring, when Andrea starts from the Irish cider and beer maker C&C Group. In the meantime, Richard Snow acts as acting financial officer.