Peak Pizza? Domino's Leader Steps Down Following Shift Towards Chicken.
The boss of Domino's Pizza Group who proposed the United Kingdom might have hit pizza saturation while diversifying the franchise into chicken products has been replaced after conflicts with its directors.
Executive Change
The former CEO is exiting after just two years in charge, and will be replaced on an temporary basis by the organization's operations head, Nicola Frampton, while Domino's looks for a permanent CEO.
Rennie, who worked for Domino's for a substantial period, had attempted to shift Britain's biggest pizza food delivery firm towards chicken offerings, remarking earlier this month there was not “huge potential” left in the UK's pizza market. He said poultry was the quickest rising menu item in the international market.
Board Tensions
It is understood that there was friction between the CEO and the board over his focus and management style, although the company's release said he was leaving “by mutual agreement”.
Recent Product Launch
In the autumn, the chain unveiled its chicken-focused offering – which the former chief referred to as a “bold new chapter” for the company – 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 in the coming year as scheduled, it views fried chicken as complementary to its core pizza business.
Leadership Comment
The Domino's chair, the Domino's chairman, stated: “We are confident that there are a number of opportunities to drive further growth and profitability in Domino's core business. We are prioritizing selecting the ideal CEO to oversee the careful implementation of that growth strategy.”
Industry Difficulties
Recently, the pizza delivery giant, which has millions of users in the UK and Ireland, said transactions fell by 1.5 percent in the third quarter. In August, it alerted that the quick-service industry had “become tougher” as it blamed reduced spending in the lead-up to the budget and increasing labor expenses for weaker-than-expected sales and a significant fall in six-month income.
Rival chains are also struggling. Another major chain disclosed the closure of 68 restaurants a recently, after the company behind its outlets faced financial collapse.
Health Initiatives
Responding to consumer trends towards healthier eating, the company has introduced lower-calorie options, such as its light base line of bakes below 400 calories as well as meat-free and allergy-friendly pizzas. A big pepperoni bake has 2,311 calories. A big margherita has 2,171 kcal, while a individual has under 1,000 calories.
Acting Management
The interim chief has been with the company since the recent past, and had a background at the gaming group a well-known operator. It is thought that she is not seeking to take on the top job on a full-time basis.
She commented: “The company has a several current expansion and performance initiatives that we will be dedicated to executing at pace.”
Frampton noted these comprised further work on the company's logistics network and new item creation, and its customer retention initiative.
Domino's is also without a permanent finance director until the spring, when Andy Andrea comes aboard from the drinks company a well-known firm. In the meantime, Snow is interim finance chief.