Pizza Market Saturation? Domino's Pizza Chief Executive Steps Down After Shift Into Fried Chicken.
The boss of Domino's Pizza Group who indicated the UK might have reached peak pizza while diversifying the franchise into fried chicken has been replaced after disagreements with its board.
Leadership Change
The former CEO is exiting after a brief tenure in charge, and will be succeeded on an acting basis by the organization's chief operating officer, Nicola Frampton, while the pizza giant looks for a new leader.
Rennie, who worked for Domino's for a substantial period, had sought to shift Britain's largest pizza takeaway chain towards fried chicken, stating earlier this month there was not “huge potential” left in the pizza sector in the UK. He said chicken was the most rapidly expanding protein in the globe.
Governance Tensions
Reports indicate that there was disagreement between the CEO and the board over his approach and management style, although the company's announcement said he was leaving “as a joint decision”.
Recent Product Launch
In September, Domino's launched its chicken-focused product line – which the former chief described as a “significant new phase” for the group – and is testing it in over 200 locations in the north-west of England and the province.
While the firm is still going to roll it out across its almost 1,400 stores next year as intended, it views chicken products as complementary to its primary pizza operations.
Leadership Comment
Bull, the company chair, commented: “Directors think that there are a range of possibilities to boost expansion and profitability in the main pizza segment. We are prioritizing identifying the ideal CEO to oversee the systematic rollout of that growth strategy.”
Market Difficulties
Earlier this month, the pizza delivery giant, which has millions of users in the UK and Ireland, said transactions declined by 1.5% in the latest quarter. In August, it alerted that the food delivery sector had “become tougher” as it attributed weaker consumer confidence in the period before the government announcement and increasing labor expenses for disappointing revenue and a 15% drop in six-month income.
Other pizza operators are also facing challenges. Pizza Hut revealed the closing of multiple locations a last month, after the company behind its outlets fell into administration.
Wellness Initiatives
Adapting to customer preferences towards balanced diets, Domino's has introduced reduced-calorie items, such as its Thin & Crispy range of pizzas below 400 kcal as well as meat-free and gluten-free options. A large pepperoni pizza has over 2,300 kcal. A big margherita has 2,171, while a individual has under 1,000 calories.
Interim Leadership
Frampton has been with Domino's since the recent past, and was formerly with the betting firm a well-known operator. It is thought that she is not seeking to take on the CEO position long-term.
She commented: “The company has a several ongoing development and efficiency programs that we will be dedicated to executing at speed.”
She added these included additional efforts on the organization's supply chain and menu innovation, and its rewards program.
The pizza chain is also in need of a long-term chief financial officer until the spring, when Andy Andrea comes aboard from the Irish cider and beer maker a well-known firm. In the meantime, Richard Snow is interim finance chief.