Peak Pizza? Domino's Pizza CEO Departs Following Move Into Fried Chicken.
The chief executive of Domino's Pizza Group who suggested the UK might have hit peak pizza while expanding the company into poultry items has been removed after disagreements with its directors.
Leadership Change
Andrew Rennie is exiting after just two years in the top role, and will be succeeded on an acting basis by the organization's operations head, Frampton, while the pizza giant looks for a new leader.
The outgoing executive, who worked for the company for a substantial period, had sought to shift Britain's largest pizza delivery company towards chicken offerings, remarking in a recent interview there was not “significant expansion” left in the pizza sector in the UK. He said poultry was the fastest-growing food category in the international market.
Board Tensions
It is understood that there was disagreement between the CEO and the board over his strategy and direction, although the company's official statement said he was departing “by mutual agreement”.
Recent Brand Launch
In September, Domino's unveiled its chicken-focused offering – which the former chief referred to as a “significant new phase” for the organization – and is testing it in select stores in the North West region and the province.
While the company is still planning to expand it across its nearly 1,400 branches next year as intended, it considers chicken products as complementary to its main pizza offerings.
Leadership Statement
The Domino's chair, the Domino's chairman, said: “The board believes that there are a range of possibilities to enhance value and value creation in the main pizza segment. We are concentrating on identifying the suitable leader to direct the systematic rollout of that development approach.”
Industry Challenges
Recently, Domino's, which has millions of users in the British Isles, said sales dipped by one and a half percent in the third quarter. In the summer, it cautioned that the takeaway market had “become tougher” as it blamed reduced spending in the period before the government announcement and higher payroll outlays for disappointing revenue and a significant fall in half-year profits.
Competitors are also struggling. Another major chain disclosed the closure of multiple locations a recently, after the company behind its outlets entered insolvency.
Health Initiatives
Responding to consumer trends towards balanced diets, Domino's has launched lower-calorie products, such as its Thin & Crispy selection of bakes below 400 calories as well as meat-free and wheat-free pizzas. A large pepperoni pizza has 2,311 calories. A family cheese pizza has over 2,100, while a individual has under 1,000 calories.
Acting Leadership
Frampton has been with Domino's since the recent past, and had a background at the gambling company a well-known operator. It is thought that she does not want to take on the top job permanently.
Frampton stated: “The company has a number of active growth and operational projects that we will be dedicated to executing at pace.”
Frampton noted these comprised ongoing development on the company's procurement system and menu innovation, and its rewards program.
Domino's is also in need of a long-term chief financial officer until the spring, when a new appointee comes aboard from the drinks company C&C Group. For now, Snow is interim finance chief.