Has Pizza Peaked? Domino's Leader Exits Following Shift Towards Chicken.
The boss of Domino's Pizza Group who indicated the UK might have hit maximum pizza demand while broadening the company into chicken products has been ousted after conflicts with its board.
Executive Shake-Up
The former CEO is leaving after only 24 months in the top role, and will be succeeded on an acting basis by the organization's chief operating officer, Nicola Frampton, while the pizza giant searches for a long-term chief.
The outgoing executive, who served at Domino's for over 20 years, had sought to redirect Britain's biggest pizza delivery company towards poultry-based products, remarking earlier this month there was not “massive growth” left in the UK's pizza market. He observed poultry was the most rapidly expanding food category in the international market.
Board Disagreements
Reports indicate that there was tension between Rennie and the governance team over his strategy and management style, although Domino's official statement said he was leaving “by mutual agreement”.
Recent Brand Introduction
In the autumn, Domino's unveiled its poultry offering – which the former chief referred to as a “bold new chapter” for the organization – and is testing it in 210 outlets in the north-west of England and Northern Ireland.
While the business is still planning to expand it across its almost 1,400 stores next year as planned, it views fried chicken as an addition to its primary pizza operations.
Leadership Comment
Ian Bull, the company chairman, said: “The board believes that there are a series of prospects to boost expansion and profitability in the main pizza segment. We are prioritizing identifying the suitable leader to oversee the disciplined execution of that growth strategy.”
Market Challenges
In the latest update, the pizza delivery giant, which has 13 million customers in the British Isles, said orders declined by 1.5 percent in the Q3. In the summer, it alerted that the food delivery sector had “become tougher” as it attributed economic uncertainty in the lead-up to the budget and rising wage costs for weaker-than-expected sales and a 15% drop in six-month income.
Competitors are also experiencing difficulties. Another major chain announced the shutting of 68 restaurants a recently, after the firm behind its British operations faced financial collapse.
Wellness Efforts
Trying to keep up with market shifts towards better nutrition, Domino's has launched reduced-calorie products, such as its light base selection of pizzas below 400 kcals as well as plant-based and gluten-free pizzas. A big pepperoni bake has over 2,300 kcal. A big margherita has over 2,100, while a small has under 1,000 calories.
Acting Management
Nicola Frampton has been with Domino's since 2021, and previously worked for the gambling company William Hill. It is believed that she is not seeking to occupy the CEO position 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.”
Frampton noted these included additional efforts on the company's procurement system and menu innovation, and its customer retention initiative.
The pizza chain is also lacking a full-time chief financial officer until March 16, when Andrea starts from the Irish cider and beer maker C&C Group. Until then, Snow is acting financial officer.