Pizza Market Saturation? Domino's CEO Exits Following Pivot Into Chicken.
The head of Domino's Pizza Group who suggested the UK might have reached maximum pizza demand while expanding the chain into poultry items has been removed after tensions with its directors.
Leadership Shake-Up
Rennie is exiting after only 24 months in charge, and will be succeeded on an temporary basis by the company's chief operating officer, Frampton, while Domino's seeks a permanent CEO.
Rennie, who worked for Domino's for over 20 years, had sought to pivot Britain's leading pizza food delivery firm towards chicken offerings, stating recently there was not “huge potential” left in the British pizza industry. He said poultry was the fastest-growing food category in the globe.
Governance Disagreements
Reports indicate that there was disagreement between Rennie and the directors over his strategy and business vision, although the company's official statement said he was leaving “as a joint decision”.
Recent Brand Launch
In the autumn, the chain unveiled its Chick 'N' Dip product line – which Rennie described as a “significant new phase” for the company – and is piloting it in over 200 locations in the north-west of England and Northern Ireland.
While the business is still planning to expand it across its nearly 1,400 branches in the coming year as planned, it considers chicken products as a supplement for its main pizza offerings.
Leadership Comment
Bull, the company chairman, said: “We are confident that there are a series of prospects to enhance value and value creation in Domino's core business. We are focused on identifying the right chief executive to oversee the disciplined execution of that development approach.”
Industry Difficulties
Earlier this month, Domino's, which has a substantial customer base in the UK and Ireland, said orders declined by 1.5% in the latest quarter. In August, it alerted that the food delivery sector had “become tougher” as it blamed weaker consumer confidence in the period before the government announcement and higher payroll outlays for disappointing revenue and a 15% drop in six-month income.
Rival chains are also facing challenges. Another major chain disclosed the shutting of multiple locations a recently, after the company behind its outlets faced financial collapse.
Wellness Efforts
Trying to keep up with customer preferences towards better nutrition, Domino's has introduced light items, such as its light base line of bakes below 400 calories as well as plant-based and wheat-free options. A large pepperoni pizza has 2,311 calories. A big margherita has 2,171, while a small has under 1,000 calories.
Interim Leadership
The interim chief has been with Domino's since the recent past, and had a background at the gaming group a well-known operator. It is believed that she does not want to occupy the top job on a full-time basis.
She commented: “The company has a multiple ongoing growth and operational projects that we will be focused on carrying out at speed.”
She said these included additional efforts on the organization's logistics network and product development, and its customer retention initiative.
Domino's is also in need of a permanent chief financial officer until March 16, when Andrea comes aboard from the Irish cider and beer maker C&C Group. In the meantime, Snow acts as acting financial officer.