Has Pizza Peaked? Domino's Leader Departs After Pivot Towards Fried Chicken.

The head of the UK's Domino's Pizza chain who indicated the UK might have hit maximum pizza demand while expanding the franchise into chicken products has been removed after conflicts with its board.

Executive Change

Andrew Rennie is departing after a brief tenure in leadership, and will be replaced on an temporary basis by the company's chief operating officer, Frampton, while the pizza giant looks for a new leader.

Rennie, who worked for Domino's for over 20 years, had aimed to pivot Britain's leading pizza food delivery firm towards fried chicken, stating recently there was not “huge potential” left in the UK's pizza market. He noted chicken was the most rapidly expanding menu item in the international market.

Governance Friction

It is understood that there was disagreement between the CEO and the governance team over his strategy and direction, although the company's announcement said he was stepping down “as a joint decision”.

New Product Introduction

In September, the chain introduced its Chick 'N' Dip brand – which the former chief called a “bold new chapter” for the organization – and is trialling it in over 200 locations in the north-west of England and the province.

While the business is still going to roll it out across its nearly 1,400 branches next year as planned, it views fried chicken as a supplement for its primary pizza operations.

Board Comment

Ian Bull, the Domino's chair, said: “Directors think that there are a range of possibilities to drive further growth and performance improvement in our primary operations. We are prioritizing finding the suitable leader to oversee the systematic rollout of that development approach.”

Market Challenges

Earlier this month, the pizza delivery giant, which has a substantial customer base in the British Isles, said orders declined by one and a half percent in the latest 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 budget and higher payroll outlays for weaker-than-expected sales and a 15 percent decline in interim earnings.

Rival chains are also struggling. Pizza Hut announced the closing of multiple locations a recently, after the company behind its British operations entered insolvency.

Health Efforts

Responding to customer preferences towards healthier eating, the company has introduced reduced-calorie items, such as its thin-crust line of bakes below 400 kcal as well as plant-based and allergy-friendly pizzas. A large pepperoni pizza has over 2,300 kcal. A big margherita has 2,171 kcal, while a individual has under 1,000 calories.

Acting Management

Frampton has been with the company since the recent past, and was formerly with the gambling company William Hill. It is understood that she does not want to take on the chief executive role on a full-time basis.

She commented: “The company has a multiple ongoing expansion and performance initiatives that we will be focused on carrying out at speed.”

Frampton noted these included additional efforts on the company's procurement system and new item creation, and its loyalty scheme.

Domino's is also in need of a full-time finance director until 16 March, when Andy Andrea comes aboard from the drinks company a well-known firm. For now, Richard Snow serves as acting financial officer.

Kevin Olson
Kevin Olson

A passionate traveler and storyteller, Elara shares insights from her global adventures to inspire others.

Popular Post