Has Pizza Peaked? Domino's Chief Executive Steps Down After Move Into Chicken.

The boss of Domino's Pizza Group who proposed the UK might have hit maximum pizza demand while expanding the chain into chicken products has been removed after tensions with its directors.

Executive Change

Andrew Rennie is departing after just two years in charge, and will be succeeded on an temporary basis by the organization's chief operating officer, Nicola Frampton, while Domino's seeks a permanent CEO.

Rennie, who served at Domino's for more than two decades, had sought to pivot the UK's leading pizza delivery company towards poultry-based products, commenting earlier this month there was not “massive growth” left in the UK's pizza market. He noted chicken was the quickest rising menu item in the world.

Board Disagreements

It is understood that there was disagreement between Rennie and the board over his approach and management style, although the company's release said he was stepping down “as a joint decision”.

New Brand Launch

In September, Domino's introduced its chicken-focused product line – which the former chief referred to as a “major strategic shift” for the organization – and is testing it in over 200 locations in the north-west of England and Northern Ireland.

While the firm is still planning to expand it across its nearly 1,400 branches in the coming year as planned, it considers chicken products as an addition to its primary pizza operations.

Leadership Comment

The Domino's chair, the company chairman, stated: “Directors think that there are a range of possibilities to enhance value and performance improvement in our primary operations. We are focused on selecting the ideal CEO to direct the systematic rollout of that expansion plan.”

Industry Difficulties

Recently, Domino's, which has millions of users in the British Isles, said transactions dipped by 1.5% in the Q3. In August, it alerted that the takeaway market had “intensified” 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.

Other pizza operators are also struggling. Pizza Hut disclosed the shutting of dozens of outlets a recently, after the company behind its outlets entered insolvency.

Health Efforts

Trying to keep up with consumer trends towards better nutrition, the company has introduced lower-calorie options, such as its Thin & Crispy line of pizzas below 400 calories as well as plant-based and wheat-free pizzas. A family-sized pepperoni has over 2,300 kcal. A family cheese pizza has 2,171 kcal, while a personal has 909 kcal.

Acting Leadership

The interim chief has been with Domino's since the recent past, and was formerly with the gambling company William Hill. It is thought that she prefers not to assume the CEO position on a full-time basis.

Frampton stated: “We have a multiple ongoing expansion and efficiency programs that we will be concentrating on carrying out at speed.”

She said these involved additional efforts on the company's procurement system and new item creation, and its rewards program.

The pizza chain is also lacking a full-time CFO until the spring, when Andrea comes aboard from the Irish cider and beer maker a well-known firm. Until then, Snow serves as temporary CFO.

Anthony Nguyen
Anthony Nguyen

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