Has Pizza Peaked? Domino's Pizza CEO Departs After Shift Into Fried Chicken.
The head of the UK's Domino's Pizza chain who indicated the United Kingdom might have reached peak pizza while expanding the company into fried chicken has been removed after disagreements with its directors.
Executive Change
Rennie is departing after only 24 months in the top role, and will be replaced on an acting basis by the company's chief operating officer, Nicola Frampton, while Domino's searches for a new leader.
The outgoing executive, who served at Domino's for a substantial period, had sought to redirect Britain's biggest pizza delivery company towards poultry-based products, stating earlier this month there was not “massive growth” left in the British pizza industry. He noted poultry was the fastest-growing food category in the world.
Governance Tensions
Reports indicate that there was tension between Rennie and the governance team over his approach and management style, although the company's announcement said he was leaving “through mutual consent”.
Recent Product Launch
In September, the chain unveiled its poultry offering – which the former chief called a “bold new chapter” for the group – and is testing it in 210 outlets in the north-west of England and Northern Ireland.
While the company is still intending to launch it across its extensive network in the coming year as intended, it regards fried chicken as complementary to its main pizza offerings.
Leadership Statement
The Domino's chair, the Domino's chairman, commented: “The board believes that there are a series of prospects to enhance value and value creation in the main pizza segment. We are concentrating on identifying the right chief executive to direct the systematic rollout of that development approach.”
Market Difficulties
In the latest update, the pizza delivery giant, which has millions of users in the British Isles, said transactions fell by 1.5% in the third quarter. In August, it warned that the quick-service industry had “become tougher” as it blamed weaker consumer confidence in the lead-up to the government announcement and rising wage costs for below-target performance and a 15 percent decline in six-month income.
Other pizza operators are also experiencing difficulties. Pizza Hut disclosed the closure of dozens of outlets a last month, after the company behind its UK venues entered insolvency.
Wellness Initiatives
Adapting to market shifts towards healthier eating, Domino's has launched reduced-calorie options, such as its light base line of pizzas below 400 kcal as well as plant-based and wheat-free pizzas. A family-sized pepperoni has over 2,300 kcal. A family cheese pizza has over 2,100, while a personal has 909 kcal.
Interim Leadership
The interim chief has been with the company since the recent past, and was formerly with the betting firm a well-known operator. It is understood that she does not want to assume the top job permanently.
She commented: “The company has a number of current development and efficiency programs that we will be concentrating on carrying out at pace.”
She said these involved further work on the organization's logistics network and new item creation, and its rewards program.
Domino's is also lacking a full-time CFO until 16 March, when Andy Andrea starts from the Irish cider and beer maker a well-known firm. For now, Richard Snow is interim finance chief.