Peak Pizza? Domino's Leader Departs Following Pivot Towards Fried Chicken.
The chief executive of the UK's Domino's Pizza chain who indicated the United Kingdom might have hit peak pizza while broadening the company into fried chicken has been ousted after disagreements with its directors.
Executive Shake-Up
Rennie is exiting after just two years in the top role, and will be replaced on an acting basis by the organization's operations head, Nicola Frampton, while Domino's looks for a permanent CEO.
The outgoing executive, who worked for the company for more than two decades, had aimed to redirect Britain's largest pizza food delivery firm towards chicken offerings, remarking recently there was not “significant expansion” left in the pizza sector in the UK. He noted poultry was the quickest rising protein in the international market.
Governance Friction
Sources suggest that there was disagreement between Rennie and the directors over his approach and direction, although Domino's release said he was leaving “as a joint decision”.
New Product Introduction
In the autumn, the chain introduced its poultry product line – which Rennie referred to as a “bold new chapter” for the organization – and is piloting it in 210 outlets in the North West region and Northern Ireland.
While the company is still going to roll it out across its extensive network next year as planned, it regards fried chicken as complementary to its core pizza business.
Board Statement
Ian Bull, the Domino's chairman, said: “The board believes that there are a series of prospects to boost expansion and performance improvement in our primary operations. We are concentrating on identifying the suitable leader to oversee the disciplined execution of that development approach.”
Industry Difficulties
In the latest update, Domino's, which has millions of users in the British Isles, said sales dipped by 1.5% in the Q3. In August, it warned that the food delivery sector had “grown more challenging” as it attributed weaker consumer confidence in the lead-up to the government announcement and increasing labor expenses for disappointing revenue and a 15 percent decline in interim earnings.
Rival chains are also experiencing difficulties. Another major chain announced the closing of dozens of outlets a month ago, after the company behind its British operations faced financial collapse.
Health Efforts
Trying to keep up with consumer trends towards healthier eating, Domino's has launched reduced-calorie products, such as its thin-crust selection of pizzas below 400 kcal as well as vegan and allergy-friendly options. A large pepperoni pizza has over 2,300 kcal. A large cheese and tomato pizza has 2,171 kcal, while a small has under 1,000 calories.
Interim Leadership
The interim chief has been with Domino's since the recent past, and was formerly with the gambling company a well-known operator. It is thought that she prefers not to occupy the top job permanently.
Frampton stated: “We have a number of ongoing growth and performance initiatives that we will be concentrating on carrying out at a rapid rate.”
She added these comprised ongoing development on the organization's procurement system and new item creation, and its loyalty scheme.
Domino's is also lacking a full-time CFO until March 16, when Andrea joins from the Irish cider and beer maker C&C Group. Until then, Richard Snow serves as acting financial officer.