Peak Pizza? Domino's CEO Steps Down After Move Into Chicken.
The chief executive of the UK's Domino's Pizza chain who indicated the United Kingdom might have reached maximum pizza demand while diversifying the franchise into chicken products has been ousted after disagreements with its governing body.
Leadership Change
Andrew Rennie is exiting after only 24 months in the top role, and will be succeeded on an interim basis by the organization's chief operating officer, Frampton, while Domino's seeks a new leader.
Rennie, who served at the company for over 20 years, had sought to shift Britain's biggest pizza food delivery firm towards poultry-based products, remarking earlier this month there was not “huge potential” left in the UK's pizza market. He observed poultry was the most rapidly expanding menu item in the globe.
Board Tensions
It is understood that there was friction between Rennie and the directors over his strategy and management style, although Domino's release said he was departing “as a joint decision”.
Recent Product Introduction
In September, Domino's introduced its Chick 'N' Dip offering – which Rennie called a “bold new chapter” for the company – and is trialling it in over 200 locations in the north-west of England and the province.
While the business is still going to roll it out across its extensive network next year as scheduled, it views chicken products as a supplement for its main pizza offerings.
Leadership Statement
The Domino's chair, the Domino's chairman, commented: “Directors think that there are a range of possibilities to boost expansion and value creation in Domino's core business. We are focused on identifying the suitable leader to oversee the systematic rollout of that expansion plan.”
Industry Challenges
Earlier this month, Domino's, which has millions of users in the British Isles, said transactions dipped by one and a half percent in the Q3. In the summer, it warned that the takeaway market had “become tougher” as it blamed reduced spending in the period before the government announcement and increasing labor expenses for weaker-than-expected sales and a significant fall in interim earnings.
Competitors are also facing challenges. Pizza Hut disclosed the closing of dozens of outlets a month ago, after the business behind its outlets entered insolvency.
Wellness Initiatives
Adapting to customer preferences towards balanced diets, Domino's has launched lower-calorie products, such as its Thin & Crispy range of bakes below 400 kcals as well as plant-based and wheat-free pizzas. A large pepperoni pizza has 2,311 kcals. A family cheese pizza has 2,171, while a individual has 909 calories.
Acting Management
The interim chief has been with the company since the recent past, and was formerly with the betting firm a well-known operator. It is understood that she prefers not to occupy the chief executive role long-term.
She said: “The company has a multiple active expansion and performance initiatives that we will be concentrating on executing at a rapid rate.”
She added these comprised further work on the organization's procurement system and product development, and its rewards program.
Domino's is also lacking a long-term CFO until 16 March, when Andy Andrea starts from the Irish cider and beer maker a well-known firm. Until then, Snow serves as temporary CFO.