Pizza Market Saturation? Domino's Leader Exits Following Shift Towards Fried Chicken.
A head of the UK's Domino's Pizza chain who suggested the United Kingdom might have reached maximum pizza demand while broadening the company into fried chicken has been ousted after conflicts with its governing body.
Executive Transition
The former CEO is leaving after a brief tenure in charge, and will be replaced on an temporary basis by the organization's operations head, Frampton, while the pizza giant searches for a new leader.
The outgoing executive, who was with the company for over 20 years, had sought to redirect Britain's leading pizza food delivery firm towards fried chicken, commenting recently there was not “massive growth” left in the British pizza industry. He said poultry was the most rapidly expanding protein in the globe.
Governance Tensions
Sources suggest that there was friction between Rennie and the governance team over his strategy and business vision, although the company's announcement said he was leaving “by mutual agreement”.
New Product Launch
In September, the chain launched its chicken-focused offering – which the former chief called a “major strategic shift” for the company – and is piloting it in 210 outlets in the North West region and the province.
While the business is still planning to expand it across its almost 1,400 stores in the coming year as scheduled, it considers chicken products as an addition to its primary pizza operations.
Leadership Comment
Bull, the company chairman, said: “Directors think that there are a series of prospects to enhance value and profitability in the main pizza segment. We are concentrating on selecting the right chief executive to oversee the disciplined execution of that growth strategy.”
Market Difficulties
Earlier this month, Domino's, which has millions of users in the UK and Ireland, said transactions declined by one and a half percent in the latest quarter. In the summer, it warned that the quick-service industry had “grown more challenging” as it attributed reduced spending in the lead-up to the budget and higher payroll outlays for weaker-than-expected sales and a significant fall in interim earnings.
Rival chains are also experiencing difficulties. Another major chain disclosed the shutting of dozens of outlets a recently, after the business behind its British operations fell into administration.
Wellness Initiatives
Trying to keep up with market shifts towards healthier eating, the company has introduced lower-calorie options, such as its light base line of pizzas below 400 kcal as well as meat-free and wheat-free pizzas. A big pepperoni bake has 2,311 kcals. A large cheese and tomato pizza has 2,171 kcal, while a individual has 909 kcal.
Interim Management
The interim chief has been with Domino's since the recent past, and had a background at the gambling company a well-known operator. It is thought that she does not want to occupy the top job permanently.
She said: “Our team has a number of active growth and performance initiatives that we will be dedicated to carrying out at a rapid rate.”
She added these involved ongoing development on the organization's supply chain and menu innovation, and its rewards program.
Domino's is also lacking a full-time finance director until 16 March, when a new appointee comes aboard from the Irish cider and beer maker a well-known firm. In the meantime, Richard Snow serves as acting financial officer.